INSURERS
Risks of lithium batteries
The use of lithium-ion batteries can pose several risks, but with appropriate safety measures and protocols these can be controlled. One of the main risks is the potential for fire hazard. Lithium-ion batteries are known for their susceptibility to overheating, short circuiting and damage. When these situations occur, a fire can quickly escalate and cause significant damage to property, risking life-threatening situations for residents.
A specific phenomenon that occurs here is ‘thermal runaway’, where a battery overheats and the temperature continues to increase, often to the point of ignition or explosion. This process can occur quickly and is difficult to stop without adequate firefighting equipment and protocols. In addition, damage to the battery can cause a short circuit and increase the risk of overheating. This can occur if a device with a lithium-ion battery is dropped or subjected to heavy impact. Improper use or charging of devices with lithium-ion batteries can also increase the risk of fire. Using non-original charging cables or adapters that are not suitable for the battery can be dangerous.
Premium policy
In recent years, insurance companies have paid close attention to the risks associated with lithium batteries due to their potentially dangerous properties, especially related to fire and explosion. Lithium batteries are widely used in consumer electronics, electric vehicles, energy storage systems and other applications due to their high energy density and long-lasting performance. However, if not handled properly or if defects occur, lithium batteries can cause a fire.
Insurance companies offer lower premiums on policies to businesses that have installed adequate fire suppression equipment, such as lithium extinguishers. This may be part of a broader risk management policy by the insurer, where they seek to minimize the risk of fire and damage.
Offering lower premiums can be an incentive for companies to invest in fire prevention and safety measures. This benefits both the insurance company and the insured, as the risk of fire and associated damage is reduced.
Rejection
Insurance companies can reject customers if they believe that the fire prevention measures within the company are not sufficient. The lack of adequate fire extinguishers and prevention equipment can be regarded as an increased risk of fire and can therefore lead to a higher premium or even to rejection of the insurance.
Insurance companies often assess the risk they face when insuring a company. If a company does not meet certain safety standards or if insufficient fire prevention measures have been taken, this can lead to a higher risk of fire and therefore to higher premiums or denial of coverage. Therefore, it is important for companies to invest in adequate fire prevention measures not only to ensure the safety of their employees and property, but also to meet the requirements of insurance companies and thus increase their chances of acceptance and favorable premiums.
Customized solutions
Lion Fire Safety is ready to support you in ensuring the fire safety of your complex. We understand that every organization has unique challenges and requirements when it comes to fire prevention and protection. That’s why we offer no-obligation consultations to discuss your specific needs and propose tailor-made solutions that meet the requirements.
Contact us today to schedule a no-obligation consultation and find out how Lion Fire Safety can help you. Safety is our priority!