Manage key risks for electric vehicle charging stations

Electric vehicle (EV) charging stations are quickly becoming a standard feature across commercial properties, workplaces, hospitality venues, and multifamily communities. As adoption accelerates, charging infrastructure is now treated as essential operational infrastructure.

But EV charging stations introduce a new set of business risks that extend beyond installation and maintenance. Electrical systems, property exposures, liability considerations, cyber risk, and contractual responsibilities all converge at the charging port. For many organizations, these risks are emerging faster than governance, controls, and insurance are evolving to address them.

Understanding where exposures arise and how to manage them proactively can help businesses support EV adoption while protecting assets, operations, and long-term success.

EV adoption on the rise

• EV sales exceeded 17 million globally in 2024, surpassing 20% market share, with as many as 200 million EVs projected on roads by 2030
• EVs are significantly less likely to catch fire than gasoline vehicles, but incidents tend to be more severe
• Notably, an estimated 15% to 30% of EV fires are linked to charging activities
  Source: Allianz

Supercharged property risks

One of the most significant risks associated with EV charging stations is property damage driven by electrical and fire exposure. Charging stations increase electrical demand on building systems that were often not designed to support modern load requirements, and improper installation, inadequate retrofitting, or insufficient electrical capacity can elevate the risk of overheating, faults, or failure.

In enclosed environments, such as parking garages or mixed-use developments, fire events can escalate quickly, resulting in extensive smoke, water, and structural damage beyond the charging equipment itself. As EV adoption increases, structural considerations may also emerge for certain parking facilities, as electric vehicles often weigh more than traditional cars.

Lithium-ion battery incidents add another layer of complexity. While relatively infrequent, battery fires are difficult to suppress, burn at extreme temperatures, and may release toxic gases, increasing the potential for severe secondary damage. In many cases, loss severity is driven less by the charger itself and more by downstream impacts, including prolonged remediation timelines and business interruption.

Strategic risk mitigation

Organizations can strengthen risk management by treating EV charging infrastructure as core building systems, not standalone amenities. Key considerations include:

• Evaluating electrical capacity, fire separation, ventilation, and suppression capabilities, particularly in enclosed or below-grade parking environments
• Assessing charger placement and physical protection to limit loss amplification in high-density or mixed-use settings, including protection from vehicle impact
• Updating emergency response and evacuation plans to address EV-related fire scenarios, especially in enclosed or high-occupancy environments

Achieve coverage alignment

As EV charging infrastructure expands, insurers are placing greater scrutiny on installation, monitoring, and maintenance practices. Aligning coverage and minimizing gaps can be challenging as technologies evolve and insurer appetite shifts, and in some cases elevated fire exposure may influence available limits or underwriting assumptions. Key considerations include:

• Reflecting charging equipment and related electrical upgrades in property valuations and schedules as infrastructure expands
• Evaluating business interruption exposure tied to charger-related losses, including impacts from access restrictions or prolonged remediation
• Confirming how EV charging infrastructure is treated under property forms, including whether equipment is scheduled, sub-limited, or subject to exclusions

Liability risk in EV charging areas

EV charging stations introduce liability exposures that often resemble traditional premises risk, but with nuances that can complicate responsibility, response, and coverage. Trip-and-fall hazards may arise from exposed charging cables, poor layout design, or inadequate lighting, particularly in high-traffic parking areas. Accessibility and ADA considerations are also becoming more prominent as chargers are added to footprints not originally designed to support accessible charging or pedestrian movement.

Vehicle-related liability presents another layer of exposure. Businesses may face claims alleging equipment malfunction, improper charging, or third-party vehicle damage. When charging stations are publicly accessible or shared among tenants, duty of care can become less clear, especially where ownership, operation, and maintenance responsibilities are divided.

In these environments, losses are often driven by routine interactions rather than catastrophic events, reinforcing the need for proactive operational controls and clearly defined responsibilities.

Strategic risk mitigation

Organizations can reduce liability exposure by treating EV charging areas as active premises environments, not passive parking amenities. Key considerations include:

• Evaluating lighting, signage, visibility, cable management, and surveillance to support patron safety, particularly in publicly accessible or after-hours charging locations
• Designing layouts with accessibility, pedestrian movement, and vehicle flow in mind
• Establishing clear procedures for incident response and documentation, particularly for vehicle damage or guest injuries

Achieve coverage alignment

As EV charging infrastructure becomes more integrated into daily operations, general liability coverage should align with how charging stations are used, accessed, and shared. This is especially important in publicly accessible or multi-tenant environments, where usage patterns and responsibility can vary. Key insurance considerations include:

• Ensuring general liability coverage contemplates premises exposure, including pedestrian and vehicle activity within charging areas
• Assessing how completed operations and third-party vehicle damage are addressed, particularly when equipment remains energized while vehicles are connected
• Confirming who is insured and how coverage applies when charging infrastructure involves multiple stakeholders or shared access

Cyber risk and EV charging stations

Modern EV charging stations are increasingly networked and software-enabled, integrating payment platforms, mobile applications, and building management systems. While connectivity improves efficiency and user experience, it also introduces cyber and technology risk beyond the charging equipment itself.

Potential exposures from system outages or cyber incidents include data privacy issues, payment system compromise, and operational disruption. In some cases, charging systems may also provide a pathway into broader building networks if integration points and security protocols are not clearly defined. As charging infrastructure becomes more interconnected, even limited disruptions can have outsized operational impact.

A common challenge is that organizations do not always recognize how EV charging infrastructure is classified within their cyber risk framework, creating uncertainty around ownership, response, and proper cyber coverage if incidents occur.

Strategic risk mitigation

Organizations can reduce cyber exposure by treating EV charging systems as connected operational technology, rather than standalone equipment. Key considerations include:

• Reviewing network architecture and integration points to limit unnecessary access to core building or enterprise systems
• Defining responsibility for system monitoring, software updates, and outage response, particularly where third-party platforms are involved
• Evaluating vendor security practices and technology governance as charging platforms evolve

Achieve coverage alignment

Cyber coverage should align with how EV charging systems are connected, managed, and used within the broader technology environment. Clear coverage treatment becomes increasingly important as infrastructure scales. Key considerations include:

• Confirming whether EV charging infrastructure falls within covered technology definitions under existing cyber programs
• Assessing how data privacy, payment-related losses, and operational disruption are addressed if charging systems are compromised or unavailable
• Evaluating potential gaps between cyber, property, and liability coverage where losses involve both physical equipment and digital systems

Operational and contractual risk complexity

Beyond physical and cyber exposures, EV charging stations introduce operational and contractual complexity that is often underestimated, particularly as infrastructure scales across portfolios.

Many organizations rely on third-party charging providers to install, operate, monitor, or maintain equipment. Without clear contract structuring, responsibility for maintenance, system performance, incident response, and liability can become unclear. Gaps in indemnification language, vague service-level expectations, or misaligned risk transfer provisions may leave property owners or operators absorbing losses they believed had been transferred.

Unlike property or liability risk, this exposure is less about coverage availability and more about governance clarity. Even minor contractual ambiguities can lead to operational disruption, disputes, or uninsured losses as charging infrastructure expands and involves multiple stakeholders.

Strategic risk mitigation

Organizations can reduce operational and contractual exposure by clearly defining ownership and accountability across the EV charging lifecycle. Key considerations include:

• Clarifying responsibility for installation, maintenance, monitoring, and incident response, particularly when multiple vendors or platforms are involved
• Aligning service-level expectations and performance standards with the operational role each party plays
• Documenting escalation procedures and decision authority for outages, safety incidents, or system failures

Aligning coverage with exposure

From a risk transfer perspective, contracts should reinforce core insurance programs, not replace them. As charging infrastructure relies more heavily on third-party providers, alignment between contractual requirements and insurance coverage becomes increasingly important. Key considerations include:

• Ensuring third-party operators carry limits and coverage appropriate to their operational role, rather than relying on standardized requirements
• Confirming indemnification and additional insured provisions align with how losses are likely to arise, particularly in shared or publicly accessible charging environments
• Reviewing contracts periodically as technology, usage patterns, and regulatory expectations evolve to prevent coverage drift over time

From EV adoption to risk readiness

EV charging stations are now a permanent part of many business environments, bringing new property, liability, technology, and operational risks that require active management. Organizations that approach EV charging infrastructure as a core business risk are better positioned to protect assets, maintain continuity, and achieve longevity as electrification accelerates. Doing so requires clear governance, informed planning, and insurance programs that keep pace with evolving infrastructure and usage.

The Baldwin Group works with organizations to align risk controls, contractual frameworks, and insurance strategies with how EV charging infrastructure is deployed and operated, helping businesses support adoption while managing exposure in a changing risk landscape.

Let’s work together to navigate the risks and opportunities shaping the road ahead.