Companies Sue over Michigan Fireworks Insurance Requirement

Several fireworks companies are suing over what they call Michigan’s excessive insurance requirements under a new state law.

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.

A state law that took effect this year allows the sale of more powerful fireworks such as firecrackers and other devices such as bottle rockets and Roman candles

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.

A spokeswoman for Gov. Rick Snyder says the insurance level was appropriate given safety priorities with the expanded fireworks availability.