C
ourier delivery via e-bicycle is familiar , especially in large cities like NYC , Boston , and Chicago . E-bikes make it easier to navigate traffic congestion . There ’ s no question that these bikes provide a greener solution than traditional vehicles . They also require a different set of insurance coverage that courier companies and their ICs must be aware of . The lithium-ion batteries used in e-bikes also present a unique fire hazard which users need to be aware of .
E-bike weight and speed amplify the risks .
The mid-point e-bike is a class II vehicle currently defined in three classes . With a top speed of 20 miles per hour , the battery holds enough charge to work 10- to 12-hour days . These e-bikes can carry hundreds of pounds of cargo more efficiently than a traditional bike .
State and local regulations vary , but municipalities may approve e-bikes for conventional bike lanes and sidewalks . The speed and weight of the vehicles pose a greater risk for pedestrians as riders zip quickly to their destinations . And the battery creates extra risk in the event of a collision .
Bike couriers have always needed insurance policies that cover top exposures like bike theft / vandalism . They ’ ve also carried general liability ( GL ) to cover risks such as colliding with pedestrians . With e-bikes , the need for coverage expands due to the cost of the bikes and the increased risk from their speed and weight . A heavier bike loaded with cargo goes faster , threatening more damage and worse injuries in an accident .
In addition , insurance underwriters are looking at the safety and environmental risks of e-bikes ’ lithium-ion batteries .
Insuring e-bikes Courier companies need to consider the following when deciding their insurance program :
• Third-party liability coverage for both bodily injury and property damage caused by e-bikes or batteries
• Business interruption / extra expense coverage to account for a shutdown ( and temporary relocation ) related to a lithium-ion battery fire
• Inland marine coverage , including offsite equipment coverage , to insure the cost of damage to e-bikes / batteries held in storage
• Pollution coverage for pollution-related exposures due to lithium-ion batteries , including the cost of the hazmat team ( a hazmat response can be a six-figure expense )
spring 2024 I customized logistics & delivery Magazine 35