Lithium-ion batteries: the quiet fire risk sitting in your premises

Picture this: your business replaces its laptops, and the old ones – twenty or so – end up stacked in a storeroom until someone finds time to recycle them. Nobody thinks twice about it. Then one of those batteries fails, and a tidy storeroom becomes a fire that spreads faster than anyone can react.

Lithium-ion batteries now power far more than phones. E-bikes, e-scooters, laptops, power tools, cordless cleaning equipment and warehouse trucks all run on them, and most businesses have more on site than they realise. Fires remain rare compared with the number of batteries in use, but when they happen they tend to be serious. That is why insurers are paying close attention.

In this article, we’ll explain why lithium-ion fires behave differently, what the latest figures show, where the risk tends to hide in an ordinary business and the practical steps that make a difference – plus what to raise with your insurer.

Why these fires are different

Lithium-ion is the rechargeable battery technology behind most portable and cordless equipment. If a cell is damaged, faulty or overcharged, it can overheat and fail in a way that feeds itself – known as thermal runaway. The result is a fire that can start suddenly, grow quickly and be hard to put out. Three things set it apart from a conventional fire:

• Speed: these fires develop very quickly, so the time you would normally rely on to raise the alarm, evacuate or tackle the fire can simply be missing.
• Risk to life: with less warning, people have less time to get out. A battery charging under a staircase or beside an exit can block the very route people need.
• Clean-up: burnt batteries leave residues that must not reach drains or watercourses. Specialist clean-up and disposal can add significantly to the cost of a loss, on top of the damage itself.

Insurers are generally not seeing a flood of lithium-ion claims. What concerns them is how costly the ones they do see can be – a single warehouse or workshop loss involving batteries can run into millions of pounds. There is also little claims history to learn from yet, which makes the risk harder to assess and price. It’s reasonable to expect more questions about batteries at renewal.

What the figures say

The headline numbers come from the fire services and the safety regulator, and the direction is clear:

• London: the London Fire Brigade attended 206 e-bike and e-scooter fires in 2025, up from 171 in 2024, with two deaths.
• UK-wide: the Office for Product Safety and Standards (OPSS) was told of 267 e-bike and e-scooter fires in 2025, with 98 casualties across 47 of those fires. It notes the true figures may be higher, because only reported cases are counted.
• Businesses: a 2025 survey of 501 UK businesses found 54% had experienced a lithium-ion battery incident, from overheating (36%) to fires (13%). Yet only 41% said they train staff on battery safety regularly.

Where the risk hides in an ordinary business

• Charging in the wrong place: chargers left running under stairs, in corridors, near exits or next to stock.
• The wrong charger or a cheap replacement: batteries and chargers bought online that don’t meet UK safety standards, or a charger that doesn’t match the battery. Lower-quality cells are more prone to defects.
• Damaged batteries: anything dropped, dented, swollen or unusually hot should be taken out of use, not carried on with.
• Stockpiles of old kit: laptops, phones and tools stored together while they wait for disposal.
• Staff and visitor e-bikes: brought inside and plugged in on your premises, often unsupervised.
• Everyday equipment: cordless floor cleaners, scrubbers and power tools charged overnight in a warehouse or workshop.

What you can do about it

1. Pick a dedicated charging area, away from flammable materials and stock, ideally with a fire-resistant cabinet or room, and never near an escape route.
2. Use the manufacturer’s charger and buy replacements from reputable suppliers. Avoid unbranded batteries and chargers.
3. Supervise charging and avoid leaving batteries on charge overnight or when the building is empty.
4. Inspect batteries regularly for damage, swelling, odd smells or heat, and replace them before they reach the end of their life.
5. Don’t let old devices pile up. Arrange safe disposal or recycling promptly and keep stored batteries cool and dry.
6. Make sure your fire risk assessment covers batteries, and that your fire detection and emergency plan reflect how quickly these fires can develop.
7. Train your team. A short briefing on safe charging, storage and what to do if a battery overheats costs very little compared with a loss.

What to raise with your insurer

If your business stores or charges batteries in any quantity, runs a fleet of e-bikes, scooters or battery-powered trucks, or handles second-hand electronics, tell your insurer. Then check three things:

• Policy conditions: are there requirements around fire protection, storage or maintenance that you need to meet?
• Clean-up costs: would decontamination and specialist disposal after a fire be covered?
• Sums insured and downtime: does your business interruption cover allow enough time to get back up and running after a serious fire?

It’s far easier to have this conversation now than after a claim.

How L Wood can help

We’ll review how your current cover responds to a battery fire, talk through any conditions you need to meet, and explain what your insurer is likely to ask. If something needs tightening, we’ll tell you plainly and help you put it right.

Talk to us

If you’d like to talk through your battery risk, get in touch with our team today. Call us on 01274 515747, email mail@lwood.co.uk, or drop by. We’re here Monday to Friday, 8:30am to 5pm.