24/01/2026
Lithium Batteries and Insurance. Here are some requirements from insurance companies. Sorry its a bit long, but it's important.
CONDITIONS FOR LITHIUM BATTERY FIRE EXPOSURE AND CLAIMS
You must ensure as reasonably practicable:
⢠that the charging of any Lithium Battery is monitored for fire, temperature, smoke, damage and charge status and shall only be performed using charging equipment supplied or approved by the OEM;
⢠the location where any Lithium Battery is charged shall be free of any sources of ignition or flammable materials;
⢠all OEM guidelines and recommendations in relation to the use, installation, storage, charging and maintenance of any Lithium Battery should be complied with; and
⢠any repairs, modifications, alterations to any Lithium Battery or its charging equipment shall only be performed by a licensed installer and as per the OEM guidelines.
They seem quite specific, but somehow still vague. The problems are;
⢠Definition of Lithium Battery:
The current definition is too broad. It doesnât distinguish between Lithium-ion (Li-ion) and Lithium Iron Phosphate (LiFePOâ), which have significantly different safety profiles. If you can send me literature on this, I will raise the matter with the State Manager to consider either broadening the definition or excluding LiFePOâ from this clause.
⢠OEM Charging Equipment:
This condition may be problematic. Many battery manufacturers provide installation and charging recommendations but do not supply their own OEM charger. This wording seems more relevant to Li-ion products such as e-scooters and e-bikes, which typically are sold with proprietary chargers. A review is needed here.
⢠Ignition Sources During Charging:
While it is reasonable to require charging in an ignition-free environment, clarification is needed for engine pods. For example, my boat uses an EFI engine, but some carburetted engines may backfire, which could technically be considered an ignition source.
⢠Licensed Installer Requirement:
The clause states repairs/installation must be done by a âlicensed installer.â This may be overly restrictive and unclear. For example, 240V installations require an A-grade electrician, but many marine electricians are trained and specialise in 12V/24V systems, which donât always require licensing but are still competent. Clearer guidance on what âlicensedâ means is required.
In conclusion;
From an insurance perspective, the safest advice to anyone purchasing these batteries is:
⢠They should check with their insurer or broker about the implications of this endorsement.
⢠Installation should always be performed by a qualified electrician or trained professional, not DIY.