Suncorp urges caution over lithium-ion battery fire risks

Risks highlighted as Black Friday sales prompt increased purchases of electronic devices

Suncorp urges caution over lithium-ion battery fire risks

Technology

By Roxanne Libatique

Suncorp Group and Queensland Fire and Emergency Services (QFES) are cautioning consumers about the growing number of fires caused by lithium-ion batteries, particularly as Black Friday sales prompt increased purchases of electronic devices and personal mobility products.

According to QFES data, there have been 325 fires in Queensland linked to lithium-ion batteries over the past two years, with 167 incidents reported since the start of 2024.

Suncorp has similarly noted an upward trend in insurance claims tied to these batteries, including several severe fire cases.

Alli Smith, Suncorp’s executive general manager of home claims customers, highlighted the importance of prioritising safety when purchasing products that rely on these batteries.

“While Black Friday offers great discounts and the chance to get a head start on holiday shopping, it’s crucial to check the safety warnings and quality when buying products with lithium-ion batteries,” she said.

Increased risk with popular devices

Smith said that some fires begin with faulty devices, while others are worsened by the presence of lithium-ion batteries.

These fires, she noted, often cause substantial property damage, with claims exceeding $500,000 becoming more frequent.

Superintendent Mark Halverson of QFES encouraged buyers to ensure that devices, such as e-scooters, comply with Australian safety standards by checking for the Regulatory Compliance Mark. He also advised purchasing products only from trusted retailers to minimise risks.

Growing risks for insurers

Chris Bennett, head of virtual loss adjusting at Crawford & Company, pointed to the broader implications for insurers as lithium-ion battery use becomes more prevalent.

The Australian Competition and Consumer Commission (ACCC) estimates that by 2026, the average household in Australia will contain 33 devices powered by these batteries.

Bennett explained that most incidents are not due to manufacturing defects but are linked to user actions, such as improper charging practices or physical damage.

He added that while lithium-ion batteries often exacerbate existing fires, they are not always the initial cause. This has led insurers to re-evaluate coverage conditions, particularly for claims where safety guidelines were not followed.

Mitigation strategies for insurers

Bennett suggested that insurers might reduce risk exposure by setting clearer policy terms around battery use and storage.

Encouraging customers to purchase certified batteries and follow manufacturer instructions could also help minimise incidents.

Suncorp and QFES safety guidelines

Both organisations provided tips to help consumers safely use lithium-ion batteries and avoid potential hazards, which insurance companies and brokers could share with their clients.

See LinkedIn post here.

Recommended practices:

  • Use chargers specifically designed for the device
  • Charge devices in well-ventilated spaces on non-flammable surfaces, such as concrete or tiles
  • Disconnect chargers once batteries are fully charged
  • Ensure working smoke alarms are installed in homes

Avoid:

  • charging devices on soft furnishings or near flammable materials
  • leaving devices unattended while charging
  • using damaged or swollen batteries

Smith also encouraged homeowners to review their insurance policies to understand coverage details for fire-related incidents.

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