Growing EV adoption brings new safety risks and insurance pressures
While the transition to lower vehicle emissions delivers clear environmental benefits, it also introduces new responsibilities for organisations. Businesses and property owners are now considering a wider range of safety issues, especially those linked to lithium‑ion batteries and the charging systems that support them. Insurers are also adjusting their approach as the specific risks associated with EV fires and repair costs become better understood. These changes reflect the maturing nature of the market and the increased operational complexity that EVs can introduce.
The infrastructure supporting EVs is expanding at speed. Government plans outline a target of 300,000 public charge points by 2030, and new building regulations already require charging facilities in many new developments, including offices and large retail sites. This rapid build‑out is a central part of the wider transition, yet it also means that more organisations must consider installation, inspection and long‑term maintenance as part of their risk planning.
What makes EV fires different
The prevalence of electric vehicles has heightened focus on how lithium‑ion batteries behave when they fail. Fire services across the UK have reported a clear rise in battery‑related incidents, prompting renewed attention from safety specialists. Although the likelihood of an EV fire remains relatively low, the behaviour of a lithium‑ion battery can make an incident far more difficult to control than an internal combustion engine fire. To understand why these incidents pose such a challenge, it helps to look at how a lithium-ion battery behaves under stress.
The science behind EV battery fires and thermal runaway events
A lithium‑ion battery that becomes damaged, overheated or faulty can enter thermal runaway, a chain reaction in which internal temperatures rise far beyond the system’s ability to cool itself. Fire specialists explain that this process can generate extreme heat, violent pressure build‑up and toxic gases in a very short time. It may also trigger high‑pressure venting and flames that behave like a blowtorch, which makes the fire far more aggressive than a conventional fuel‑based incident. The National Fire Chiefs Council notes that lithium‑ion battery fires can reignite even after they appear extinguished and can overwhelm standard fire protection measures, complicating fire suppression efforts and increasing the risk of further damage.
Why enclosed car parks need stronger EV safety measures
Government guidance and industry analysis have highlighted specific safety concerns for enclosed spaces such as underground and covered car parks. These environments can trap heat, smoke and flammable gases, which can intensify the effects of a lithium‑ion battery fire and make evacuation and suppression more difficult.
There have already been situations in which authorities have restricted or paused EV charging in covered car parks due to these elevated risks. In 2025, the UK Parliament halted EV charging in its own covered car parks after assessing the fire‑risk profile, a decision that prompted wider discussion about safe installation in confined areas. Current government guidance stresses that enclosed car parks require careful placement of chargers, attention to ventilation and consideration of how heat and smoke may accumulate during an incident.
How EV use is reshaping insurance risk and costs
In response to the mounting evidence, insurers are reassessing the risks associated with EVs. This increased potential for loss has led to a rise in related insurance claims, with UK fire services reporting that the number of lithium-ion battery fires nearly doubled between 2022 and 2024.
Insurers are also paying close attention to where and how vehicles are charged. As previously noted, charging bays in enclosed car parks, mixed‑use buildings or large commercial sites may require additional fire‑safety measures before insurers feel comfortable with the risk. Longer repair times, higher replacement costs and specialist battery handling add further pressure. None of this means electric vehicles are uninsurable. It simply means the insurance market is adapting and expects businesses to manage the risks carefully.
Why businesses need robust safety checks for workplace and commercial EV chargers
EV charging points are now a routine feature in many workplaces, with several recognised charging modes in use across the UK. Lower‑power domestic options remain available, yet most commercial locations use Mode 3 smart charging equipment, which is permanently connected to the mains supply. Mode 4 units, which deliver direct current for rapid charging, are commonly installed at high‑throughput sites such as service stations and fleet depots.
Regardless of the charging mode, the Electricity at Work Regulations require that EV charging equipment is properly inspected, maintained and routinely tested in line with manufacturer instructions. Regular checks help reduce the risk of electrical faults, ensure compliance and support safe operation across busy commercial and industrial environments.
Steps for businesses and fleet operators
There is no single approach that fits every organisation, but several measures can help strengthen resilience and reduce risk.
- Review fire‑safety plans so they reflect the behaviour of lithium‑ion batteries, including the possibility of reignition and the challenges posed by heat and smoke in confined areas.
- Maintain and inspect charging equipment regularly, using competent specialists to confirm that installations, particularly Mode 3 systems, remain safe and compliant.
- Speak with insurers early to understand any changing conditions and to ensure your fleet and charging arrangements remain aligned with policy requirements.
- Assess the layout of charging areas and position bays so they do not obstruct escape routes and allow heat to disperse safely.
- Train staff and users in safe charging practices and teach them how to recognise early signs of battery problems.
- Keep track of regulatory updates on EV safety and charging infrastructure so your organisation stays compliant and well prepared.
Government guidance on EV fire safety and charging infrastructure continues to evolve. Organisations that monitor updates will find it easier to remain compliant and protect their operations.
Contact us
If you’d like to discuss EV risk with one of our specialists, please visit our commercial property insurance page.
