Lithium-ion batteries are dominating headlines due to a surge in fires linked to e-bikes, electric vehicles and energy storage devices. A recent British Safety Council report revealed that: “In the UK, Lithium-ion batteries discarded in domestic and business waste are responsible for an estimated 201 fires a year.”
As these batteries become increasingly embedded in daily business and personal use, brokers must understand and advise on the danger. Speaking on the danger of lithium battery fires, Adrian Simmonds, practice leader for property risk solutions at QBE Insurance said: “They burn hotter, longer, and often need 10 times more water to extinguish. They are more harmful to the environment and more difficult to contain.” This sentiment is echoed by a Welsh fire and rescue service which told the BBC that Lithium-ion batteries present the "fastest growing" risk of fires.
Battery technology is now present across a vast range of industries, making it a concern for all policyholders. According to Simmonds: "In addition to commercial use, lithium-ion batteries are often brought onto business premises via staff commutes on e-bikes or e-scooters, or through their integration into mobile plant, solar systems, or backup power supplies.”
Simmonds believes in order to understand the risk, everyone must be aware: “Wherever these batteries are located, risk assessments must be thorough and specific,” he iterated "the breadth of use means no sector is immune."
Some of the sectors most at risk that brokers must consider include:
The unique nature of lithium-ion battery fires presents a new set of challenges for brokers. According to Simmonds: "These risks are complex and multifaceted, requiring a comprehensive approach to risk management." Simmonds also believes that brokers need to be proactive when it comes to their implementation:
"Insurers and brokers should ask explicit questions about the presence and purpose of lithium-ion batteries during site assessments. Formal risk surveys and technical bulletins can provide essential guidance on handling, charging, storing and inspecting these devices” He expanded on the precautions, explaining that this involves inspecting returned or damaged batteries and using safety measures like interlocking chargers—which automatically cut power if a fire starts—and fire detection systems that quickly alert to smoke or heat to help prevent fires from spreading.
Brokers can help mitigate fires by:
New regulation—such as the Product Regulation and Metrology Bill—could soon tighten controls on devices like e-bikes: “The Bill is intended to enable the UK to maintain high product standards, supporting businesses and economic growth, by updating relevant laws.” According to a UK Parliament report, Simmonds argued the benefits the report could have:
"If properly implemented, such rules can improve safety for all," he cautioned, however: "But insurers, brokers and businesses need to stay abreast of changes and adapt their practices accordingly." To help clients minimise risk, brokers play a critical educational role. Simmonds said: "People need to understand the risks and how to deal with them," he emphasised: "Hazard awareness, physical separation, fire spread containment and an appropriate emergency response are all key.”
For homeowners and small businesses, he recommends caution when purchasing and using these devices. “For homeowners, it’s important to purchase e-bikes and e-scooters from reputable retailers who demonstrate a commitment to quality and compliance, including products that carry a genuine CE mark,” he said. "Only buy from reputable retailers. Never charge in escape routes. Only charge when people are present and awake. Dispose of batteries properly and act quickly if overheating or gas release is detected."
Brokers can promote safe usage by:
