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Electric Vehicles: What Businesses Should Check Before Adding Them to a Fleet
Electric vehicles are becoming a more common part of Australian business fleets, but they can introduce some different risks and insurance considerations compared with petrol or diesel vehicles.
Before adding EVs to your fleet, it’s worth reviewing both the vehicles themselves and any charging infrastructure you plan to install.
Check how the vehicles will be insured
EVs don’t necessarily require a separate type of motor insurance, but the policy needs to reflect the vehicle, its use and any EV-specific equipment.
Depending on the policy, cover may extend to the traction battery, charging cables, wall chargers and other accessories owned by the insured.
These items shouldn’t be assumed to be covered automatically, so check the wording and any applicable limits.
Repairs can be more specialised
EV repairs may require trained technicians, specialist equipment and access to particular parts.
That doesn’t mean every EV will cost more to repair, but repair times and costs can be influenced by the vehicle model, parts availability, battery damage and access to suitably qualified repairers.
For a business fleet, longer repair times can also affect vehicle availability and operations.
Battery damage needs special attention
Road-registered EVs use high-voltage lithium-ion batteries.
Fire and Rescue NSW advises that a vehicle involved in a collision, fire, significant impact or flood should be treated cautiously because the battery may have been damaged.
A damaged EV should not be charged or used until it has been inspected and cleared by a qualified technician.
What about charging at your premises?
Installing EV chargers can create additional electrical and property risks.
Businesses should use appropriately qualified electricians and consider whether the existing electrical system can safely support the additional load.
It’s also worth telling your property insurer about major charging infrastructure, particularly where multiple vehicles will be charged on-site.
Review the whole fleet risk
When moving to EVs, consider more than just the vehicle premium.
Think about repairer access, replacement vehicle arrangements, charging equipment, downtime and how a damaged battery would be managed at your premises.
Speak with your Risk Adviser before adding EVs or charging infrastructure to your business so you can review the Motor, Property and other insurance implications.