Fireworks Suppliers Want Fast Decision on Insurance Law

Fireworks suppliers are urging a judge to quickly consider their challenge to a new Michigan law that requires millions of dollars in liability insurance if they want to sell powerful fireworks. The companies filed suit on Feb. 1 in Detroit federal court seeking to overturn a requirement to obtain $10 million in liability insurance in order to sell an expanded line of fireworks.

Bay City federal Judge Thomas Ludington has set a hearing for June 7. But that’s after Memorial Day and is close to July 4, the biggest day of the year for fireworks. Suppliers need to place their orders.

A new law allows the sale of powerful fireworks such as firecrackers, bottle rockets and Roman candles. A coalition of fireworks distributors says the insurance requirements could make it impossible to turn a profit.

The state is defending the insurance portion of the new law, saying it will keep “fly by night” retailers from posing a safety threat.

The companies suing the state say the insurance provision is unconstitutional and favors larger companies that can afford the coverage, giving them an unfair advantage in the market.