Specialist insurance advice for on-site electric vehicle storage

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【Summary】Retailers with electric vehicles (EVs) on their premises should seek specialist insurance advice due to ambiguities in insurance cover. A recent case demonstrated the complexities of insurance for EVs, where a damaged vehicle was left unlocked overnight, resulting in £20,000 of damage caused by youths. However, the retailer had valid reasons for leaving the vehicle unlocked, as it had a faulty EV in the body shop with potential fire risks.

FutureCar Staff Oct 09, 2023 6:18 AM PT

Specialist insurance advice for on-site electric vehicle storage

Joe Francis, Regional Broking Director (North East) at PIB Insurance Brokers, discusses the challenges retailers face when it comes to insurance cover for electric vehicles (EVs). In a recent case, a retailer experienced damage to an EV on their forecourt after it was left unlocked overnight, resulting in around £20,000 of damage caused by a group of youths.

However, there were additional factors at play. The retailer had another faulty EV in the body shop, which was immobilized for repairs. Due to the fire risks associated with EVs, the second vehicle was stored outside to minimize this potential hazard. The damaged vehicle was left unlocked because of an undiagnosed electrical fault, and the auxiliary battery was removed to further reduce the fire risk.

When the retailer submitted a claim for the damage, the insurer argued that the client had not complied with policy requirements. This raised the question of what is considered reasonable in such a situation. Should the retailer face extensive and costly damage to their business due to fire, or should they make a smaller claim for a damaged vehicle?

In the UK, there are currently over 76,000 fully electric cars and around 490,000 plug-in hybrids on the roads. These numbers are expected to rise as demand and availability increase. Therefore, it is crucial for retailers to be aware of the associated risks and insurance complications.

As the risks surrounding EVs are relatively new, insurers tend to be cautious. It is advisable for retailers to seek specialist advice when reviewing their insurance cover to ensure any uncertainties or ambiguities in their policies are clarified in case a claim needs to be made. In the aforementioned case, the client was able to secure a claim for the damage with the help of PIB Insurance Brokers' expertise and insurer relationships. Collaborating with a specialist automotive risk advisor can help demonstrate that reasonable precautions were taken to mitigate risks to the business.

For more information, please contact Joe Francis at [email protected].

Source: https://www.zap-map.com/ev-stats/ev-market/