New initiative on 14th September launched by Chubb, a new Lloyd’s of London consortium which it will lead that is designed to provide insurance coverage for risks associated with the transit and storage of lithium batteries.
The consortium was created to address a lack of capacity in the marine cargo market for providing lithium battery transit and stock insurance. It provides a one-stop solution with limits up to $50 million for risk types associated with lithium batteries including transit, stock throughput, standalone stock and warehouse legal liability, and will include excess stock and part orders.
To remind, TT Club, explained the critical dangers of lithium-ion batteries, including that of toxic gas emissions associated with lithium-ion battery fires. As informed, failure of these batteries can occur with no prior warning or at such a rapid pace that there is typically no time to react to any warning signs. The devastating consequences of rapidly spreading and often challenging to extinguish fires involving the batteries, particularly in electric vehicles (EV) on board ships and other parts of the supply chain, have been well documented in recent months.
As explained, it is led by Chubb Global Markets (CGM), including its Lloyd’s platform, and supported by 11 other Lloyd’s syndicates. CGM will also draw on the capabilities of Chubb Climate+, the company’s global climate business unit launched early in 2023.
Rob Wilson, Chief Underwriting Officer for Chubb Global Markets said that the work involved in managing lithium battery risks is extensive and brokers can now use this facility to gain access to capacity in this new risk area.
The consortium provides brokers and insureds with a single port of call to bind these risks, helping to shore up the lithium battery supply chain as demand continues to grow.
The lithium battery industry is growing at a rapid rate and many businesses involved in moving and storing these batteries are increasingly in need of an experienced and reliable insurance partner and solution to support the ramp-up in production.
..said Matt Hardy, Leader of Chubb Climate+ for Chubb Overseas General.
The creation of a consortium dedicated to underwriting these risks aligns firmly with our commitment to harnessing our underwriting and risk engineering capabilities to support the transition to a low-carbon economy.