Can a prospective tenant put a insurance claim

[Vishal Bansal]

I've a property managed by a property manager which was due on cleaning and it was posted on the listing that property needs to be cleaned up. A person paid up the deposit and one month rent and when he went to look at the property, he probably didn't like it (even though it was newly painted), as it was not cleaned. Now, the person is saying that when he visited the property and opened the door of the oven, a bug flew out and he got hurt in the process to avoid the bug. He said the property is hazardous to stay, even though that's not the case. He is asking for insurance information to make a claim and also to return back the deposit and rent.
I want to know what is the risk involved here, if he can sue based on this incident and if I choose to return his deposit and rent, can I create a formal document to make sure he doesn't sue or ask for insurance information again.