New Jersey Suit Tests Insurance Coverage for Product Liability Class Actions

Hair Zone, Inc., the company behind the Sensationnel brand, has initiated a lawsuit in federal court in New Jersey against its insurers Hartford Fire Insurance Company, Hartford Casualty Insurance Company, The Charter Oak Fire Insurance Company, and Travelers Property Casualty Company of America. 

The dispute centers on the insurers' refusal to cover defense costs related to class action lawsuits filed in California alleging that Hair Zone's synthetic hair products contained carcinogens, lead, and volatile organic compounds that caused bodily injury and property damage. Hair Zone argues that it complied with all insurance policy obligations, including premium payments, and that the claims fall under the coverage provisions for legal liabilities due to bodily injury and property damage.

Hartford denied coverage in May and July 2025, while Travelers has yet to clarify its position on coverage. Hair Zone is seeking a court declaration compelling both insurers to defend and indemnify it, as well as damages for breach of contract from Hartford. This ongoing litigation highlights critical issues in commercial insurance related to product liability and insurer obligations to defend policyholders in complex class action scenarios. The case outcome could set important precedents impacting insurer-policyholder dynamics and coverage interpretations in product-related class action claims.