It takes just one moment - a spark, a crushed casing, a dropped device - for an ordinary household object to become the start of a devastating fire. A recent home-security video that circulated widely across social media captured the moment a pet chewing a portable power bank triggered an explosive flash, filling the room with smoke in seconds. No malice, no negligence, just a split-second interaction with a lithium-ion battery.
It is a powerful demonstration of how commonplace, unpredictable, and fast-escalating lithium battery fires have become. From e-bikes and scooters to power banks, laptops, vapes, tools and energy-storage units, lithium-powered devices now sit in almost every UK home and business. As usage soars, so do fire losses, and insurers are increasingly facing claims that are complex, high-value, and difficult to recover. According to recent data obtained by QBE Insurance, UK fire services attended approximately 1,330 lithium-ion battery fires in 2024, almost double the 690 incidents recorded in 2022. E-bikes alone accounted for almost a third (27%) of all recorded lithium-battery fires in 2024, illustrating how everyday consumer products are now driving high-severity losses. This rapid escalation underlines how ordinary consumer devices are now driving a new class of high-severity household fire losses.
This article explores why lithium battery fires are rising, the challenges they present for insurers, and how early, informed response can protect both indemnity spend and recovery prospects.
A growing source of high-severity losses
Lithium battery fires are not ordinary fires. They behave differently, escalate rapidly, and often ignite without warning. When damaged, over-charged or poorly manufactured, the battery can enter “thermal runaway”; a chain reaction that causes intense heat, gas release, and explosion-like behaviour.
For insurers, this trend translates into a growing pattern of high-severity property damage, with lithium-battery fires spreading so fast that entire rooms are engulfed before occupants realise something is wrong. Causation investigations also become significantly more challenging; once a battery enters thermal runaway, it often destroys itself and any surrounding evidence within seconds, leaving insurers, loss adjusters, and experts with very limited material to analyse and making it harder to determine liability, identify recovery prospects, or rule out third-party contribution. At the same time, reinstatement periods are lengthening, leading to more substantial living-expense and business-interruption claims as properties require extensive smoke decontamination, structural repair, and specialist remediation. Importantly, these incidents are no longer confined to industrial or specialist settings - residential losses now account for a rising share of lithium-related claims, particularly those linked to e-bike chargers, portable power banks, and vapes left unattended or incorrectly stored, expanding the risk landscape that insurers must navigate.
Why these claims are harder to investigate
From an insurance perspective, lithium battery fires present unique evidential challenges.
- Evidence is often destroyed at ignition
Traditional fire origins such as faulty wiring, cooking equipment or candles typically leave clear and recognisable burn patterns, whereas lithium battery failures can destroy the point of origin entirely, making it significantly harder for investigators to identify whether the fault lay with the manufacturer, the charger, or the way the product was installed or used.
- The supply chain is complex
Batteries are often imported, assembled from parts sourced globally, repackaged by different brands, or sold through online marketplaces. Determining the appropriate point of liability, whether that lies with the manufacturer, importer, retailer, or assembler, becomes a complex and often uncertain exercise.
- Unregulated or non-compliant products
A substantial proportion of e-bike batteries and chargers sold online fail to meet UK safety standards, with many being defective, incorrectly labelled or altered by third-party repair shops, which in turn makes recovery efforts significantly more difficult for insurers.
- Multiple potential defendants
Claims can quickly become multi-party disputes, potentially involving the battery manufacturer, the charger supplier, the device or e-bike brand, the retailer, the repair technician, or even landlords and tenants where charging took place in communal areas. Early legal review is therefore essential to identify viable recovery targets before evidence is lost or parties become unreachable.
Policy wording: coverage questions are increasing
Insurers are also seeing a rise in policy-wording questions as lithium battery incidents become more common, particularly around whether modified, repaired or third-party batteries fall within cover, whether overnight or improper charging amounts to misuse, and whether endorsements impose specific duties for e-bikes, scooters or battery-storage units. Issues can also arise when fires appear sudden and accidental, but stem from a gradual fault within the battery or its components. These uncertainties mean coverage positions can become contentious, so early reservation of rights and prompt, well-instructed expert evidence remain essential tools for insurers navigating this evolving risk.
Recovery: a critical opportunity if action is taken quickly
Recovery remains a critical opportunity for insurers, but only when action is taken quickly.
- Early evidence preservation
Although lithium battery fires can destroy the battery itself and much of the surrounding evidence, early steps significantly improve subrogation prospects. Prompt site attendance and preservation of any remaining debris can make the difference between identifying a manufacturing defect and losing the chance entirely.
- Joint expert instruction
Early joint expert instruction with potential defendants also streamlines the investigation, avoids duplicated examinations, and strengthens any future recovery action.
- Supply-chain tracing
DACB’s recent experience demonstrates that prompt supply chain tracing, including for online purchases, frequently uncovers recoverable targets, especially where CE or UKCA compliance has been presented inaccurately.
- Consumer-protection legislation
Even where evidence is partially compromised, consumer-protection legislation such as the Consumer Protection Act 1987 provides insurers with powerful strict-liability routes against manufacturers, importers, or distributors.
Despite the challenges, lithium battery fires often present real recovery potential for insurers. But speed is crucial.
What insurers can do now
With lithium battery fire claims increasing each year, insurers can strengthen their response by setting clear underwriting guidance for high-risk items such as e-bikes, scooters and battery storage units; providing policyholders with accessible information on safe charging and storage; implementing defined procedures for early site attendance that include asking about battery-powered devices at first notification of loss; establishing expert panels with proven experience in lithium battery causation and supply-chain analysis; and working closely with legal teams so that evidence is preserved promptly and recovery prospects are assessed at the earliest possible stage.
Conclusion
Lithium battery fires are no longer rare anomalies; they are now a mainstream source of significant loss for UK insurers. The viral video of a dog accidentally igniting a battery power bank is a reminder of just how easily these incidents can occur in ordinary homes. For insurers, the challenge is twofold: navigating increasingly complex questions around coverage and causation and acting quickly enough to secure evidence that may support a recovery. As these claims continue to rise in both volume and complexity, early engagement, structured investigation, and clear legal strategy will be essential to managing indemnity spend and maintaining policyholder safety.
