As public sector organisations transition their fleets to electric vehicles (EVs), effective insurance arrangements are essential to support financial resilience, asset protection, regulatory compliance and operational continuity.

EVs and charging infrastructure introduce a number of risks that differ from those associated with internal combustion engine (ICE) vehicles, including:

• Higher repair costs.
• Parts availability and supply chain constraints.
• Battery fire risks.
• Risks and vulnerabilities associated with charging infrastructure.

Addressing these challenges requires insurance policies that are appropriate for electric vehicle fleets and which provide protection against financial losses, operational disruption and liability risks.

Insurance products for EVs have evolved alongside changes in legislation, technology and market uptake. However, insurance premiums for electric vehicles can remain higher than those for equivalent ICE vehicles in some circumstances. As organisations work towards net zero commitments, insurers and fleet operators will need to work together