Advertisement feature from PIB Insurance Brokers

Joe Francis, Regional Broking Director (North East) at PIB Insurance Brokers, highlights how ambiguities in insurance cover for electric vehicles (EVs) can cause headaches for retailers.

A recent case involved damage to an EV on a forecourt. The vehicle had been left unlocked overnight, during which time a group of youths accessed it, ransacked the interior causing around £20,000 of damage.

On paper, this would appear negligent by the retailer, but there was more to the story.

The retailer had an already faulty EV in the body shop, immobilised whilst being worked on. EVs can carry fire risks, and to follow best practice from a Health and Safety perspective, the second vehicle was stored outside to reduce this potential risk.

The damaged vehicle was not locked due to an undiagnosed electrical fault, with the auxiliary battery removed to reduce the fire risk.

On submitting a claim for the damage, the insurer stated the client had not complied with policy requirements.  But what is reasonable? Extensive and extremely costly damage to a business due to fire, or a smaller claim for a damaged vehicle?

There are more than 76,000 fully electric cars, and a further 490,000 plug-in hybrids, on UK roadsi. With greater demand and availability, these figures are only set to increase, which means it is essential for retailers to be aware of the associated risks and insurance complications.

Many of the risks surrounding EVs are relatively new, and therefore, insurers are somewhat cautious.  When looking at your cover, it is vital for retailers to seek specialist advice to ensure any grey areas in their policies are clear in the event a claim needs to be made. Thanks to our expertise and insurer relationships, the client secured a claim for the damage. Working with a specialist automotive risk advisor can help highlight that the correct steps were taken to ensure reasonable precautions were put in place to reduce the risk to the business. 

For further information, please contact

Joe Francis, e: Joe.Francis@pib-insurance.com

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