Working with E-bikes: The Insurance Angle
Posted on in Business News , Cycles News
If you stock e-bikes, you may need to re-read your policy because a generic shop or retail insurance policy is unlikely to cut it these days. Unless you have a policy designed to accommodate cycling business, you might be in for a shock.
Many generic business policies either exclude e-bikes completely or impose impractical storage and charging conditions that can make it hard or impossible to operate your business on a day-to-day basis. Joanna Evans, Head of Bikmo for Business, explains in the next installment of a series of articles.
Why Insurers Are Worried About E-bikes
Let's be clear about why this is happening. High-profile battery fires from modified or converted bikes, and bikes that sit outside quality assurance frameworks, have scared insurers. And insurers have responded by either excluding e-bikes entirely or imposing strict conditions that don’t work in the real world of the bike biz.
These requirements might include separate storage buildings for batteries, charging only during business hours with staff present, specialist fire suppression systems, and limits on the number of batteries stored or charged.
For a bike shop stocking reputable brands and following manufacturer guidelines, these conditions can be hard or impossible to meet.
The Real-World Impact
Generic policies don't just exclude e-bikes from stock cover. They can exclude them from:
Fire Cover: The most common exclusion. If a fire involves e-bike batteries, your entire claim could be denied.
Liability Cover: If an e-bike battery causes injury or damage, you might not be covered.
Workshop Cover: Some policies exclude work on e-bikes or e-bike components.
Professional Indemnity: If you're advising customers on e-bike purchases or setups, this might be excluded too.
The problem is that e-bikes aren't a niche product anymore. They're mainstream. They're the fastest-growing revenue stream for UK retailers and a key part of a healthier, more sustainable transport system.
The Specialist Difference
This is where a specialist makes all the difference. We've worked closely with our underwriters at Hiscox to ensure our policy includes e-bikes as standard. Why? Because we understand that if you're storing reputable brands, following charging and storage guidelines, and doing things professionally, you shouldn't be penalised.
We differentiate between reputable brands sold through proper retail channels and non-certified products. We understand the difference between a bike shop following manufacturer guidelines and a business with poor storage practices.
What Good E-bike Cover Looks Like
Your policy should:
Include e-bikes as standard without conditions that are impossible to meet.
Differentiate between reputable and non-reputable products. A quality e-bike from a recognised manufacturer isn't the same risk as a cheap conversion kit.
Have reasonable storage and charging guidelines that reflect actual best practice, not impossible conditions.
Cover the full value of your stock without arbitrary limits on e-bike values or numbers.
Include workshop operations for e-bike servicing and repairs.
Provide liability cover for e-bike sales and service.
What to Check in Your Current Policy
When reviewing your insurance, make sure you’re asking the following questions.
- Are e-bikes included or excluded?
- What conditions apply to battery storage?
- What about charging procedures?
- Are there limits on battery numbers or values?
- Does it cover reputable brands differently from conversion kits?
- What happens if a fire involves e-bike batteries?
- Is your workshop covered for e-bike servicing?
Best Practice for E-bike Storage
Even with good insurance, following best practice protects your business:
Store batteries according to manufacturer guidelines. This usually means cool, dry conditions away from direct sunlight.
Use manufacturer-approved chargers only. Cheap third-party chargers are a major fire risk.
Don't charge batteries overnight unattended if possible. Many fires happen during charging.
Keep batteries at appropriate charge levels for storage (usually 40-60%).
Inspect batteries regularly for damage, swelling, or unusual heat.
Have appropriate fire detection and suppression in your storage areas.
The Bottom Line
E-bikes aren't going away and will be the future for most retailers. Your insurance needs to reflect the reality of modern bike retail, not exclude it. If your current policy excludes e-bikes or imposes impossible conditions, it's time to find a specialist insurer who understands the cycling industry.
The worst time to discover your e-bikes aren't covered is when you're making a claim. Check your policy now, ask the right questions, and make sure you're properly protected. You may thank us later.
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