Will your clients unknowingly bring holiday gifts into their homes this year that have the potential to burn down the house?
Sadly, the answer has a growing chance of being ‘yes’ since the lithium-ion batteries powering many electronic devices given as holiday gifts can, over time, develop an ability to combust.
“Recent advancements in battery chemistry and design have significantly enhanced the safety profile of [lithium-ion] batteries,” says a new report from commercial insurer QBE.
“However, considerable risks persist, with management implications becoming more complex and important as adoption and use cases continue to increase. Monitoring and understanding battery health over the lifecycle is a crucial aspect of risk reduction. Taking preemptive action when a battery sustains damage greatly reduces the potential for dangerous incidents.”
The danger stems from lithium-ion batteries’ ability to catch fire spontaneously – a phenomenon known as ‘thermal runaway.’
“This phenomenon occurs when the internal temperature of a battery cell rises uncontrollably due to internal short circuits, overcharging, excessive discharge or physical damage,” says QBE’s report. “The heat generated during this process can cause the electrolyte within the battery to break down, releasing flammable gases.
“These gases can ignite, leading to fires or explosions that can spread rapidly and are difficult to extinguish.”
Once it starts, thermal runaway can’t be reversed.
Numerical disadvantage
Risks are amplified by what QBE calls an omnipresence of lithium-ion batteries, noting that in 2023 alone more than one billion smartphones were sold globally – the vast majority of which are powered with lithium-ion batteries.
The cells also power laptops, tablets, e-readers, gaming consoles, smart watches, cameras – and e-bikes and e-scooters, which have been involved in serious fires resulting in injuries and deaths.
“In a high-profile case, manufacturing defects in a widely sold tablet model led to battery fires and explosions, resulting in injuries and a costly global recall for the manufacturer,” says QBE.
Further, the insurer notes: “If a [lithium-ion] device malfunctions while charging at home, it could harm occupants and cause damage, leading to personal injury and property damage…If a battery fails in a crowded space like a shopping mall or an airport, this could spark panic, injuries, damage and disruption. The resulting liability could involve multiple parties, including manufacturers and venue operators.”
Battery failures do, though, come with some warning signs, including overheating, swelling, discolouration, leaking, emission of odours and “abnormal popping, hissing or crackling sounds.”
In addition to residential fire risks, lithium-ion batteries can ignite claims risk when they’re transferred to reprocessing and storage facilities. QBE notes used lithium-ion batteries are at higher risk of catching fire than new units.
Featured image by iStock/MediaProduction
