Around 90% of all reputable e-bikes placed on the UK market are from just 17 major brands, all but one of which are members of the UK cycle industry trade association, the Bicycle Association (BA), which provides extensive product safety and compliance support. The BA and its members also participate on European (CEN) and international (ISO) standards development committees to drive further safety improvements.

Until around 2018/19, there were very few reports of safety issues of any sort with e-bikes. But around that time, and then spurred on by the pandemic, there was an increase in the popularity of ‘gig economy’ food delivery. This industry is structured in such a way that app operators are not responsible for the legality or safety of the equipment used by riders, on the basis that these riders are self-employed contractors. Operators also incentivise deliveries to be made at the highest possible speed. As many riders do not have driving licences, to be able to compete in the delivery economy they are driven to modify bicycles using low quality conversion kits, often sourced from online marketplaces, to add electric propulsion.

Unfortunately, although widely reported as “e-bikes” in the media, these food delivery vehicles are generally not road legal as e-bikes (with higher power and speed than the law allows). And because they are usually DIY-assembled, from components of uncertain quality and compatibility, they also pose high fire risk.

It is now estimated that at least 150,000 of these high risk delivery vehicles are in use, often by economically marginal riders with no safe place to store or charge them. We understand that such vehicles are behind the majority of reported battery fires.

The very real fire risks represented by these electric food delivery vehicles, reported as “e-bikes”, have resulted in an understandably cautious insurance industry reaction to all e-bikes in the form of blanket exclusions or refusals.

This is now putting at risk the availability of insurance (and as a result access to many premises) even for reputable e-bikes from companies with excellent safety track records and highly tested and compliant products.

There is now an opportunity for agile, informed players in the insurance industry to get ahead of the pack in serving the safe, reputable e-bikes market.

Reputable e-bikes and micromobility have huge potential in the future of transport, and are a key element of meeting Government climate, health and congestion targets. This represents a range of opportunities for the insurance industry:

In particular:

• Commercial insurance: E-bike retailers, distributors and manufacturers all need business and premises insurance to operate, and usually also product liability insurance. Another fast-growing sub-sector is cycle logistics (delivery services using specialist cargo carrying e-bikes) who additionally require goods in transit insurance.
• Premises insurance: Premises where e-bikes are stored (residential, office buildings, public buildings) need insurance which permits responsible persons to properly manage fire risk - including from e-bike batteries - while safeguarding access for visitors, employees or residents who may be using e-bikes for their transport.
• Inclusive policies: All types of organisation require inclusive policies. Any blanket restrictions on access for e-bikes resulting from insurance requirements or exclusions may disproportionately and severely affect disabled people who use e-bikes or other mobility devices which employ lithium batteries. The charity for disabled people who cycle, Wheels for Wellbeing, explains this in detail here. So there’s a strong need for policies which enable access for safe e-bikes and similar mobility devices.

To take opportunities in all of these sectors, the insurance industry needs as much information as possible about where and how fire risk from e-bike batteries is caused, and possible means by which both the frequency and severity of these incidents may be mitigated. This document aims to help provide “quick start” information on both aspects.

In very many cases, we (representing responsible producers of thoroughly safety-tested and road legal e-bikes) believe that outside of high risk groups, the risk of e-bike battery fire incidence is very low, and that risk can generally be managed to acceptable levels:

• For cycle industry business, with straightforward evidence of good practice.
• For premises, with some adaptations but without damaging restrictions on e-bike access or storage for businesses and users who have purchased their e-bikes responsibly.

We are aware that the insurance industry has, quite rightly, noted the media reports of “e-bike fires” and, pending further data, underwriters have in many cases taken the interim decision to decline to cover all e-bike battery fire risks.

This is potentially very damaging for our sector, the reputable cycle industry, as our products and businesses may be left uninsured as a result of an entirely separate group of high risk products and users over which we have no control.

We understand that the insurance sector is rightly cautious and requires evidence and data to inform understanding of risk. We do hope that the considerations and resources on this page may be helpful in enabling insurers to identify varying risks within what are broadly described as “e-bikes”, and to focus exclusions to be specific to the high risk products and users.