Specialized insurance guidance for on-site electric vehicle storage
【Summary】Insurance cover for electric vehicles (EVs) can be ambiguous, leading to potential headaches for retailers. A recent case involving damage to an unlocked EV on a forecourt highlights the need for specialist insurance advice. EVs pose fire risks, so the damaged vehicle was stored outside with its auxiliary battery removed. When the retailer submitted a claim, the insurer initially stated the client had not complied with policy requirements.
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). One recent case involved damage to an EV on a forecourt, where a group of youths accessed the unlocked vehicle and caused around £20,000 of damage.
However, there was more to the story. The retailer had an already faulty EV in the body shop, which was immobilized for repair. Due to the fire risks associated with EVs, the second vehicle was stored outside to reduce this potential risk. The damaged vehicle was left unlocked because of an undiagnosed electrical fault, with the auxiliary battery removed to further minimize 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 raises the question of what is considered reasonable: extensive damage due to fire or a smaller claim for a damaged vehicle?
With over 76,000 fully electric cars and 490,000 plug-in hybrids on UK roads, it is crucial for retailers to be aware of the associated risks and insurance complications. Many of these risks are relatively new, leading insurers to exercise caution. To ensure clarity in their policies and in the event of a claim, retailers should seek specialist advice to navigate any grey areas.
Thanks to the expertise and insurer relationships of PIB Insurance Brokers, the client in this case was able to secure a claim for the damage. Working with a specialist automotive risk advisor can help demonstrate that reasonable precautions were taken to reduce the risk to the business.
For further information, please contact Joe Francis at [email protected].
Source: https://www.zap-map.com/ev-stats/ev-market/
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