Specialized insurance guidance for on-site electric vehicle storage

Home > Industry Analysis > Content

【Summary】Retailers with electric vehicles (EVs) on their premises should seek specialist insurance advice due to ambiguities in coverage. A recent case involving damage to an unlocked EV on a forecourt highlighted the complexities of insurance requirements. In this case, the damaged vehicle was unlocked due to an electrical fault and fire risk. The insurer initially denied the claim, citing non-compliance with policy requirements.

FutureCar Staff Oct 09, 2023 9:20 AM PT

Specialized insurance guidance 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, an EV on a forecourt was damaged when a group of youths accessed it overnight. The vehicle had been left unlocked, resulting in around £20,000 of damage. While this may seem negligent on the part of the retailer, there were extenuating circumstances.

Prior to the incident, the retailer had another faulty EV in the body shop, which was immobilized for repairs. Due to the fire risks associated with EVs, it was stored outside to reduce the potential danger. The damaged vehicle, which had an undiagnosed electrical fault, was left unlocked with the auxiliary battery removed to 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. However, determining what is reasonable in such situations can be complex. Should the retailer face 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, the number of EVs is expected to rise. This makes it crucial for retailers to understand the associated risks and insurance complications.

Insurers tend to be cautious when it comes to the risks surrounding EVs, as they are relatively new. Therefore, it is important for retailers to seek specialist advice to ensure any uncertainties in their policies are clarified in the event of a claim. In this case, the client was able to secure a claim for the damage with the help of a specialist automotive risk advisor who demonstrated that reasonable precautions had been taken to reduce the risk to the business.

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

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