What the Dollar Tree Helium Tank Lawsuit Reveals About Insurance Coverage Gaps

In October 2022, a customer at a Dollar Tree store in Connecticut was injured when a helium tank allegedly malfunctioned. While the retailer expected its insurance to respond, Cincinnati Insurance Company denied coverage—sparking a lawsuit that’s sending ripples through the business and insurance communities.

At the core of the dispute is the concept of "additional insured" status and a ‘sole negligence’ exclusion in the supplier’s policy. Dollar Tree argues it should be covered under the supplier’s policy, having required such coverage in its vendor agreement. Cincinnati Insurance contends that Dollar Tree’s employees were solely at fault and that the policy’s exclusion absolves them of liability.

This case underscores how complex vendor agreements and insurance policies can become—especially when multiple parties are involved. For business owners, it’s a crucial reminder to understand policy language, verify additional insured status, and clearly define liability in contracts.

As the case unfolds, adjusters and risk managers alike should watch closely. The outcome could influence how future claims involving third-party vendors are handled—and how coverage is interpreted when exclusions are invoked.