3d rendering group of EV charging stations or electric vehicle recharging stations with graphic display

Charged with Responsibility: Navigating Developer & Landowner Liability for Electric Vehicle Charging Stations

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Due to growing demand and government incentives, the number of EV charging stations in the U.S. has doubled since December 2020. As the rapid expansion of electric vehicle infrastructure continues, we learn more about the unique challenges of installing, operating, and decommissioning EV charging stations. Here are the current liabilities developers and landowners of EV charging stations are facing:

Pre-Acquisition Liabilities

Legacy contamination:Landowners are responsible for site inspection due diligence. However, existing contamination sometimes goes undiscovered until later, when the new landowner is held responsible. This is especially true for previous industrial sites, old manufacturing properties, or old gas stations, etc.

Installation Liabilities

Fixed site exposures: During installation, the EV charging station is more vulnerable to leaks, spills, and vandalism. The landowner/operator is held responsible for damages caused by leaks and spills, and if not insured properly, they may have to absorb the cost of cleanup.

Ongoing Operations Liabilities

  • Equipment failures: Coverage for equipment leaks or explosions caused by battery or other equipment failures resulting in environmental damage or injury to contractors or third parties. 
  • Third-Party damage: Includes any damages created by third parties, for example, fuel or oil leak on a maintenance truck or vandalism to the equipment or property.

Decommissioning Liabilities: 

  • Legacy contamination: Dismantling or excavation is a time in which the developer and site owner may discover an old UST, spill, waste or, worse—disturb the contamination, exacerbating the problem. 
  • Third-Party claims from decommissioning activities: Dust, spills, leaks, and noise may trigger complaints from neighboring properties or public spaces.

Key Insurance Products for Renewable Energy Risks, Including EV Charging Stations:

  • Commercial General Liability/Contractors Pollution Liability/Professional Liability
  • Site Specific Pollution Liability
  • Automobile Liability
  • Workers Compensation
  • Property
  • Inland Marine

Landowners and operators of EV charging stations can minimize their risk with proper environmental insurance products. From Site Pollution Liability to Auto, this coverage protects you from environmental liabilities. Whether managing routine operations or facing potential contamination during decommissioning, this coverage offers peace of mind and protects the longevity of your business by covering cleanup costs, legal fees, and third-party claims. For more information on coverage for renewable energy businesses and/or developers or to discuss an account, please contact a Beacon Hill Associates team member today.

Type: Blog

Topic: Electric vehicle