Supporting installers in navigating insurer concerns around lithium battery systems in commercial environments
Download the Safety & Risk Clarification Statement
Introduction
Over recent months, we have received increasing feedback from installers encountering resistance from insurers and underwriters when proposing or installing commercial battery storage systems.
In many cases, this resistance stems from a broad classification of “lithium batteries” without a clear understanding of the specific chemistry, system design, or safety standards associated with modern energy storage systems.
This article aims to provide clarity, context, and practical support for installers navigating these discussions.
The Core Issue: A Knowledge Gap
There is a growing disconnect between:
- The technical reality of modern battery storage systems
- The perceived risk profile applied by insurers
While caution is understandable, many underwriting decisions appear to be based on:
- Generic lithium-ion risk assumptions
- High-profile incidents involving unsuitable or non-compliant products
- A lack of differentiation between battery chemistries and system architectures
This can result in:
- Delayed projects
- Increased premiums
- In some cases, outright refusal of cover
Not All Lithium Batteries Are the Same
A key misunderstanding is the assumption that all lithium batteries behave similarly.
Fox ESS systems utilise LiFePO₄ (Lithium Iron Phosphate) chemistry, which is widely recognised as:
- Thermally stable
- Cobalt–free
- Significantly less prone to thermal runaway
As outlined in our safety documentation:
- The phosphate cathode structure provides inherent stability
- Thermal runaway is far less likely than in other lithium-ion chemistries
- Systems are engineered with multiple layers of protection
This distinction is critical and often overlooked in underwriting decisions.
Engineered Safety: Beyond Cell Chemistry
Modern commercial battery systems are not simply collections of cells – they are fully managed, protected energy systems.
Typical safety architecture includes:
1. Multi-Layer Electronic Protection
- Real-time monitoring of voltage, temperature, and current
- Automatic shutdown mechanisms
- Cell-level supervision via BMS
2. Mechanical & Electrical Safeguards
- Integrated fusing and circuit protection
- Controlled isolation in fault scenarios
3. Fire Mitigation Design
- Internal fire suppression mechanisms
- Sealed enclosures to prevent fire propagation
- Pressure relief systems to manage gas release safely
These systems are designed to prevent, detect, and mitigate faults at multiple levels.
Commercial Installations: The “Grey Area”
Unlike domestic installations, where guidance such as PAS 63100 is emerging, commercial battery storage lacks a single, universally applied framework in the UK.
Instead, installations are typically governed by a combination of:
- BS 7671 (electrical safety)
- Manufacturer installation guidelines
- Site-specific fire risk assessments
- Engagement with local fire authorities where appropriate
This flexibility allows for engineered, site-specific solutions, but can also create uncertainty for insurers.
Real-World Context
It is important to distinguish between:
- Consumer electronics incidents
- Poor-quality or non-compliant battery systems
- Engineered, certified stationary energy storage systems
To date, large-scale deployment of LiFePO₄-based systems—such as those used by Fox ESS—has demonstrated an extremely strong safety record, with no reported combustion incidents across hundreds of thousands of deployed systems .
Supporting Installers: A Practical Approach
When engaging with insurers, we recommend:
1. Provide Clear Technical Information
- Battery chemistry (LiFePO₄ vs generic lithium-ion)
- System certifications and compliance
- Safety architecture (BMS, protection layers, enclosure design)
2. Emphasise Risk Mitigation Measures
- Installation location and separation distances
- Fire detection and suppression systems (where applicable)
- Ventilation and access considerations
3. Offer Supporting Documentation
We have produced a downloadable Installer Support Statement that can be shared directly with insurers and underwriters.
Looking Ahead
As the commercial battery storage market continues to grow, alignment between:
- Manufacturers
- Installers
- Insurers
- Regulators
will be essential.
At Fox ESS, we are committed to supporting installers with:
- Transparent technical information
- Robust product design
- Ongoing engagement with industry stakeholders
