With electric vehicles becoming increasingly popular, and companies eager to do what they can to reduce their carbon footprints, the need for electric vehicle (EV) charging points on commercial premises has seen a significant upsurge.

If you are one of the growing numbers of businesses that has introduced EV charging points for staff or visitor use, it may not yet have crossed your mind to add them to your buildings insurance sum insured. But it really is advisable, for reasons we’ll share in this post.

Electric vehicle charging points – what’s the insurance risk?

Electric vehicles, including electric and hybrid cars, e-bikes, e-scooters and mobility scooters, typically use lithium-ion batteries to power their motors and other electrical components.

Compared to traditional battery types, lithium-ion batteries last longer, and provide more energy. This is not a problem if electric vehicles are operated and maintained in line with the manufacturer’s specifications.

But if the batteries or the vehicles are modified or damaged, or if there’s an electrical malfunction during charging and discharging, then they can present a considerable fire hazard, an increased risk to firefighters and building occupants, and a high degree of environmental contamination in the surrounding area.

When a lithium ion battery becomes damaged, defects may not be immediately apparent. It could take minutes, hours, days or even months for issues to manifest.

Fire risk is at its highest when lithium-ion batteries are being charged. This is especially the case where the battery is defective. Even when an EV fire has been seemingly extinguished, it has been known for a battery to reignite. This likelihood can be increased if the vehicle is moved or disturbed.

That’s not to say that electric vehicles are any more of a fire risk than other types of vehicles. It’s just a different risk. But one that needs to be addressed, and covered.

What are the safety recommendations for EV charging points?

There are a number of general recommendations for the installation and use of electric vehicle charging points. These include, but are not limited to:

• Follow the IET Code of Practice: EV Charging Equipment Installation/BS 7671 – 18th Edition wiring regulations, Section 722 (Electric Vehicle Charging Installations).
• For charging points situated within multi-storey car parks, ensure consideration is given to locating these in open areas, with clear access for firefighting.
• For charging stations within buildings, provide a minimum of 60 minutes fire resistance between the charging area and other parts of the premises.
• Separate basement level parking areas that have EV charging points from other parts of the premises, ensuring at least 120 minutes of fire resistance.
• Use a residual current device (RCD) to automatically separate the charging station from the electrical power supply in the event of a ground fault, and follow the recommendations for having these tested every six months in line with the IET Code of Practice.
• Provide emergency manual isolation of charging stations in a clearly signposted and readily accessible location, allowing for safe shutdown of equipment in the event of fault or failure.
• Ensure the charging station is able to automatically disconnect from the electrical supply in the case of electrical malfunction.
• Give due consideration to active fire control measures and ventilation for enclosed EV charging points.
• Install an automatic fire detection system.
• Avoid the use of extension leads with portable chargers.
• Only charge electric vehicles with Original Equipment Manufacturer (OEM) factory-fitted batteries, or OEM approved compatible replacements which are fitted by a competent person.

In terms of the layout of electric vehicle chargers, when selecting sites for charging points, it is vital to allow adequate space for vehicles to park safely in the designated charging area, and for connection to be made to the charger.

Where a charging area is enclosed, make sure it is free from storage, including waste, with a minimum separation of six metres.

To learn more about electric vehicle charging best practice, it is recommended that premises owners and managers read “Infrastructure for the Charging of Electric Vehicles Approved Document S” of the Building Regulations 2010.

What about liability considerations?

As well as the vital safety aspects, electric vehicle charging best practice should also consider the following liabilities:

Accessibility – ensure the design of the charging points and parking areas comply with the Equality Act 2010, Disability Discrimination Act 1995 guidelines, and Department for Transport Inclusive Mobility.

Signage – use appropriate signage with adequate information and usage instructions to mitigate the risk of injury and property damage; to communicate emergency procedures and provide emergency contact details, and to share user safety etiquette guidelines, such as ‘no smoking’.

Environment – suitable safety measures should be given consideration, for example lighting, ventilation, charging bay space, noise, height and accessibility of the charging unit, and general housekeeping of the surrounding area to ensure the removal of combustible waste.

What will my buildings insurer want to know?

If you are adding cover for electric vehicle charging points on your commercial premises, the insurer is likely to ask the following questions:

• How many chargers do you have onsite?
• Are the chargers owned or rented?
• Are the chargers solely for the benefit of staff and/or visitors? (As opposed to being listed on a national database for paid use by any electric vehicle driver.)
• Is the power supply derived directly from the National Grid, rather than from some form of local energy storage system, for example a solar PV set-up?
• Are the chargers incorporated into your Fire Management Plan?
• Are your staff provided training in the operation of the chargers before they’re allowed to use them?
• What are the dimensions of the car parking spaces served and the distances between the chargers?
• Do the chargers have automatic and manual cut-out facilities?
• Are the chargers tested and inspected in accordance with the relevant regulations?
• What is the value of the chargers to add to the buildings sum insured?

EV charging points – the cover you need, from your dedicated team

At Robert Gerrard, we’re committed to taking a proactive approach to our clients’ commercial insurance needs, and evolving risks.

We will be discussing EV charging points with all our clients at their renewal review. In the meantime, if you have recently introduced electric vehicle charging points onto your commercial premises and have any immediate questions or concerns, or would like to discuss your cover needs, please get in touch with your regular RG contact.