Wrong. Gross Negligence requires using a product in a manner not consistent with its intended use. Just because a product is illegal in Colorado doesn't mean that the use or possession of said item negligent enough to deny an insurance claim. These consumer fireworks are regulated under the Consumer Product Safety Act, the same act/code that insurers rely on when insuring said products. It would be pretty difficult for an insurance company to say a product, which has been deemed as 'safe and sane,' is suddenly now not safe or sane even though it was used in it's designed manner - so long as the policy owner didn't alter or manipulate the device. Colorado law is pretty clear on this one, and it would take extraordinary (legally speaking) language in the policy, with the burden on the insurer, to deny such a claim.