Specialized insurance guidance for on-site electric vehicle storage
【Summary】Specialist insurance advice is recommended for retailers with electric vehicles (EVs) on their premises. Ambiguities in insurance coverage for EVs can lead to complications and potential claim denials. A recent case involving damage to an unlocked EV highlighted the importance of seeking expert advice. As the number of EVs on UK roads continues to rise, it is crucial for retailers to understand the associated risks and insurance complexities.
Joe Francis, Regional Broking Director (North East) at PIB Insurance Brokers, sheds light on the challenges faced by retailers when it comes to insurance coverage for electric vehicles (EVs). He emphasizes that ambiguities in the coverage can lead to headaches for retailers.
A recent case exemplifies this issue. An EV parked on a forecourt was left unlocked overnight, and a group of youths accessed it, causing approximately £20,000 worth of damage by ransacking the interior.
However, there was more to the story. The retailer had another faulty EV in the body shop, which was immobilized for repairs. To mitigate the fire risk associated with EVs, the second vehicle was stored outside, following best practices for Health and Safety. The damaged vehicle was left unlocked due to an undiagnosed electrical fault, with the auxiliary battery removed to further reduce the fire risk.
When the retailer submitted a claim for the damage, the insurer stated that the client had not complied with policy requirements. This raises the question of what is considered reasonable: extensive and costly damage due to fire or a smaller claim for a damaged vehicle?
The number of fully electric cars in the UK exceeds 76,000, with an additional 490,000 plug-in hybrids on the road. As demand and availability of EVs continue to grow, retailers must be aware of the associated risks and insurance complications.
Insurers tend to be cautious when it comes to the relatively new risks surrounding EVs. Therefore, it is crucial for retailers to seek specialist advice to ensure that any uncertainties in their policies are clarified in the event of a claim. Thanks to the expertise and relationships with insurers, the client in this case was able to secure a claim for the damage. Collaborating with a specialist automotive risk advisor can help demonstrate that reasonable precautions were taken to mitigate risks 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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