Navigating Liability: Protecting Your Property Against Lithium-Ion Insurance Risks

E-bike batteries are showing up in apartment lobbies, commercial loading docks, strata parkades, and fleet depots across Canada — and insurers are paying close attention. An August 19, 2026, report by CTV News titled "Lithium battery fires: How to safely charge and store e-bike batteries" reinforced what fire safety professionals and underwriters have been tracking for several years: lithium-ion battery fires are no longer a fringe concern. They are an emerging operational and financial liability for anyone responsible for a building, a fleet, or a workplace.

This resource is written for property managers, commercial landlords, residential strata and condominium boards, business owners, and e-bike fleet operators who need to understand what the risk actually looks like, how it affects insurance coverage, and what practical steps can reduce exposure before an incident occurs.

What the CTV News Report Highlighted

The August 19, 2026, CTV News report focused on the charging and storage behaviours that elevate lithium-ion battery fire risk — particularly for e-bike batteries used in residential and commercial settings. Key takeaways from the report include:

  • Charging location matters. Batteries charged in enclosed spaces, near combustible materials, or left unattended overnight present a meaningfully higher risk profile.
  • Equipment compatibility is critical. Using chargers not designed for a specific battery can accelerate cell degradation and increase the likelihood of a thermal event.
  • Physical damage is a leading indicator. Batteries that have been dropped, punctured, or exposed to moisture should be removed from service and assessed before further use.
  • Insurance requirements are tightening. Commercial insurers are increasingly scrutinizing how policyholders manage lithium-ion battery charging and storage, with some policies now including explicit conditions around these practices.

The report does not suggest that e-bike batteries are inherently dangerous under all conditions. Rather, it underscores that risk is largely a function of how batteries are managed — and that property owners and operators carry meaningful responsibility for establishing safe practices.

Why Lithium-Ion Battery Fires Behave Differently

Understanding the technical characteristics of lithium-ion battery fires helps explain why standard fire response protocols may be insufficient and why specialized lithium battery fire protection equipment is increasingly recommended.

Thermal runaway is the core mechanism. When a lithium-ion cell is damaged, overcharged, or exposed to excessive heat, it can enter a self-sustaining exothermic reaction. Heat generated within one cell can trigger adjacent cells, causing a cascading failure across the battery pack. This process can occur rapidly and may not be immediately visible before it becomes uncontrollable.

Key characteristics that distinguish these fires:

  • Extreme heat generation. Lithium-ion battery fires can reach temperatures that exceed the capacity of conventional suppression agents to cool effectively.
  • Reignition risk. Even after apparent suppression, residual heat within battery cells can cause reignition — sometimes hours after the initial event. This is a documented challenge for first responders and building occupants alike.
  • Toxic off-gassing. Thermal runaway produces hazardous gases including hydrogen fluoride, which poses serious health risks in enclosed spaces.
  • Variable behaviour. Not every lithium-ion battery fire follows the same progression. Battery chemistry, state of charge, physical condition, and environmental factors all influence how a fire develops.

These characteristics are why fire safety professionals and insurers are moving toward purpose-built lithium-ion battery fire extinguishers and containment solutions rather than relying solely on conventional ABC or CO₂ extinguishers.

Who Carries the Most Liability

Property Managers and Commercial Landlords

If tenants or employees are charging e-bikes, scooters, or other lithium-powered devices on your property, you may carry liability for the conditions under which that charging occurs. This includes common areas, parking structures, loading zones, and any space where batteries are stored or charged without explicit safety controls in place.

Commercial insurance policies are increasingly including lithium-ion battery clauses. Failure to demonstrate reasonable precautions — documented procedures, appropriate equipment, and staff training — can affect both coverage validity and premium rates.

Residential Strata and Condominium Boards

Strata and condo boards face a dual obligation: protecting the building and protecting residents. E-bike storage in hallways, stairwells, and underground parkades is a growing concern in urban Canadian properties. Many boards are now developing formal policies governing where and how lithium-powered devices may be charged and stored, and what equipment must be available in those areas.

Lithium battery fire protection for apartments and condos is a practical starting point for boards developing or updating their safety policies.

Business Owners and Fleet Operators

Organizations operating e-bike delivery fleets, warehouse equipment powered by lithium-ion batteries, or any workplace with significant battery charging activity face both occupational health and safety obligations and commercial insurance requirements. The warehouse battery fire risk profile is distinct from residential settings — higher battery counts, faster charging cycles, and less consistent oversight all contribute to elevated exposure.

Prevention and Preparedness: Practical Guidelines

Reducing lithium-ion battery fire risk is primarily an operational challenge. The following practices are consistent with guidance from fire safety authorities and equipment manufacturers, though organizations should always verify compliance with local fire codes, occupational health and safety regulations, and their specific insurance policy conditions.

Charging practices:

  • Charge batteries only with the charger supplied or approved by the manufacturer.
  • Do not charge batteries that show signs of physical damage, swelling, unusual heat, or odour.
  • Avoid charging batteries unattended for extended periods, particularly overnight.
  • Do not charge batteries in enclosed spaces without adequate ventilation.
  • Keep charging areas clear of combustible materials.

Storage practices:

  • Store batteries at a partial state of charge (typically 40–60%) if they will not be used for an extended period — follow manufacturer guidance.
  • Maintain storage temperatures within the range specified by the manufacturer.
  • Do not stack batteries in ways that could cause physical pressure or damage.
  • Inspect batteries regularly and remove any showing signs of degradation from service immediately.

Organizational procedures:

  • Establish a written policy governing lithium-ion battery charging and storage on your property.
  • Train staff or building personnel on the signs of battery distress and the appropriate response.
  • Develop and communicate an emergency response plan that accounts for the specific characteristics of lithium-ion battery fires.
  • Document your safety measures — this documentation may be relevant to insurance compliance.

Fire-Response Considerations

Establishing a response strategy before an incident occurs is significantly more effective than improvising during one. For organizations managing lithium-ion battery risk, this means having the right equipment in place and ensuring that personnel know how to use it.

AVD Lithium-Ion Battery Fire Extinguishers

AVD (Aqueous Vermiculite Dispersion) extinguishers are specifically formulated to address lithium-ion battery fires. Unlike conventional water or CO₂ extinguishers, AVD agents are designed to cool burning battery cells rapidly and form a barrier that helps suppress reignition. They are available in configurations suited to different environments:

For a detailed comparison of suppression options, see AVD vs. ABC Fire Extinguisher for Lithium Battery Fires and AVD vs. CO₂ Fire Extinguisher for Lithium Battery Fires.

AVD Fire Blankets

Lithium battery fire blankets are designed to contain a burning battery or device, limiting the spread of fire and reducing the release of toxic gases while evacuation and emergency response occur. They are a practical addition to any location where individual battery-powered devices are charged or stored.

Integrated Storage and Charging Protection

For fleet operators and commercial environments with high battery counts, dedicated lithium-ion battery storage and charging cabinets with integrated fire suppression provide a more comprehensive risk management approach.

LithiumSafe Fire: Canadian Lithium Battery Safety Equipment

LithiumSafe Fire is a Canadian supplier specializing in lithium-ion battery fire protection and safety equipment. Our product range includes AVD fire extinguishers, fire blankets, and storage solutions selected for their suitability in Canadian commercial and residential environments.

We work with property managers, strata boards, business owners, and fleet operators who are navigating the practical and regulatory dimensions of lithium-ion battery safety. Our focus is on providing accurate information and appropriate equipment — not on overstating risk or making guarantees that no safety product can honestly support.

Next Steps

If your organization is reviewing its lithium-ion battery safety posture — whether in response to new insurance requirements, a policy update, or a proactive risk assessment — we encourage you to:

Frequently Asked Questions

Can I store my e-bike battery in my condo unit or parkade overnight?

Storage practices should follow your building's strata or condo board policy, your insurer's requirements, and the battery manufacturer's guidelines. Generally, batteries should be stored away from combustible materials, at a moderate state of charge, and in a location with adequate ventilation. If your building does not yet have a formal policy, raising the issue with your board is a reasonable first step.

Will my commercial insurance cover a lithium-ion battery fire?

Coverage depends on your specific policy terms. Many commercial insurers are now including conditions related to lithium-ion battery management. Review your policy carefully and consult your broker to understand whether your current practices meet the conditions of your coverage. Documented safety procedures and appropriate equipment can support your compliance position.

What type of fire extinguisher should be available where e-bikes are charged?

Conventional ABC dry chemical extinguishers are not optimally suited to lithium-ion battery fires. AVD (Aqueous Vermiculite Dispersion) extinguishers are specifically formulated for this application. The appropriate size and configuration depend on the number of batteries, the space, and the risk profile of the environment. See our extinguisher comparison resources for guidance.

What should a workplace policy for lithium-ion battery charging include?

At minimum, a workplace policy should address: approved charging locations and equipment, inspection requirements before charging, procedures for handling damaged batteries, storage parameters, and emergency response steps. Policies should be reviewed against local fire code requirements and occupational health and safety regulations applicable to your jurisdiction.

Sources

CTV News. (August 19, 2026). Lithium battery fires: How to safely charge and store e-bike batteries. CTV News.

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