Chubb, in partnership with a consortium of Lloyd’s of London syndicates, has announced a new initiative aimed at addressing the lack of insurance coverage for risks associated with the transit and storage of lithium batteries. The consortium, led by Chubb Global Markets, offers a one-stop solution with coverage limits of up to $50 million for various risk types associated with lithium batteries, including transit, stock throughput, standalone stock, and warehouse legal liability.
The need for such coverage is driven by the critical dangers posed by lithium-ion batteries, which can lead to toxic gas emissions and fires. These batteries can fail without warning, causing rapid and challenging-to-extinguish fires, especially in electric vehicles on board ships and throughout the supply chain. Recognizing these risks, Chubb’s consortium aims to provide brokers and insureds with a single point of contact to bind these risks, thus strengthening the lithium battery supply chain.
The consortium comprises Chubb Global Markets and 11 other Lloyd’s syndicates. It also leverages the capabilities of Chubb Climate+, the company’s global climate business unit launched earlier in 2023. This collaboration allows brokers to access capacity and expertise in managing lithium battery risks, ensuring they can offer comprehensive insurance solutions to businesses involved in the growing lithium battery industry.
Matt Hardy, Leader of Chubb Climate+ for Chubb Overseas General, emphasized the increasing demand for insurance partners that can support the ramp-up in lithium battery production. He stated that the creation of this dedicated consortium aligns with Chubb’s commitment to supporting the transition to a low-carbon economy by leveraging their underwriting and risk engineering capabilities.
In summary, Chubb’s new initiative, in partnership with Lloyd’s syndicates, fills the gap in insurance coverage for the transit and storage of lithium batteries. By offering comprehensive coverage and expertise in managing the risks associated with these batteries, the consortium plays a crucial role in supporting the growth of the lithium battery industry while ensuring the safety and protection of businesses involved in their movement and storage.
– TT Club