Electric Vehicle Charging Station Liability Coverages
February 9, 2016
With the growing interest in alternative energy sources, electric vehicles are receiving more and more interest. In light of that, three states—California, Colorado, and Oregon—have developed forms to attach to homeowners policies that provide liability coverage for charging stations of the insured.
Topics: Introduction California, HO 24 37, Electric Vehicle Charging Station Liability Coverages Colorado, HO 24 38, Electric Vehicle Charging Station Liability Coverages Oregon, HO 24 39, Electric Vehicle Charging Station Liability Coverages
Introduction
Electric gasoline hybrid cars like the Toyota Prius or Chevy Volt, or all electric cars like the Chevy Spark or Tesla Model X, are becoming more and more available. Between 2008 and 2015, over 411,000 highway legal plug-in electric cars were sold in the United States. California has the most vehicles, with 174,000 units sold since 2010.
The hybrids can run on electrical energy for short trips or gasoline energy for longer trips. The 2015 Chevy Volt has a range of thirty-eight miles on battery power alone, making it good for short trips to save gasoline. The Chevy Spark and Telsa models run on electricity alone. The Spark can go eighty-two miles before a charge, and the Tesla S has a much broader range of 270 miles.
Charging, of course, is essential. While the vehicles can be plugged into a standard outlet to charge, doing that takes a significant amount of time. For faster charging, a 240 volt outlet is recommended, and this must be installed by a professional. A Spark can be fully recharged in seven hours on a 240 volt charger. Tesla says that on a 110 volt outlet, you gain three miles of range per hour of charge; on 240 volt you gain twenty-nine miles of range per one hour charge.
There are different levels of charging: with level one charging, from fully depleted to fully charged can take from seven to twenty-nine hours; level two takes two to ten hours, and level three takes about thirty minutes. Level three bypasses the on-board charger of the vehicle and delivers DC energy directly. Of course for true electric vehicles, the owner must either go no farther than he can return in order to recharge or must be able to find another charging station on the road. There are online maps and smartphone apps that let owners know where the nearest charging station is. Maps will even tell you what type of charger is there, so the owner can determine how long he will have to remain at that location in order to get enough charge to continue his journey.
California, HO 24 37, Electric Vehicle Charging Station Liability Coverages
The form is specific to residences with an association of property owners, generally condominiums, but it can be applied to homeowners forms as well. It allows for the association to be scheduled for coverage. It was created so that if within developments with homeowner's associations, it was impossible or unreasonably expensive to install a charging station into an insured's designated parking space, that the charging station could be installed in a common area for the exclusive use of the insured. The definition of “charging station” is defined by California law. Coverage is for $1,000,000.
DEFINITIONS
Definition 5., which defines “insured”, is extended to include the association of property owners named in the Schedule above, but only with respect to:
1.Coverage E – Personal Liability, but only with respect to “bodily injury” or “property damage” arising out of the ownership, maintenance or use of an “electric vehicle charging station”. The following definition is added:
2.”Electric vehicle charging station” means a station:
a.That is designed in compliance with the California Building Standards Code and delivers electricity from a source outside an electric vehicle into one or more electric vehicles; and
b.Is owned by the “insured”, located in the “insured's” designated parking space or located in a common area for the exclusive use of the “insured”.
Analysis
The definition of “insured” is extended to the scheduled association of property owners. Personal liability coverage is extended with respect to injury or damage arising out of the ownership, maintenance, or use of an “electric vehicle charging station.”
Because this is a California form, an “electric charging station” is defined as a station designed in compliance with the California Building Standards Code and delivers electricity to an electric vehicle and is owned by the insured, and located in the insured's designated parking space or common area for the use of the insured. Because charging stations deal with large amounts of electricity in order to charge the vehicle faster, being in compliance with the building code is essential. Charging stations in general are not do-it-yourself projects.
SECTION II – EXCLUSIONS
The following is added with respect to “electric vehicle charging station” liability coverages:
This coverage does not apply to “bodily injury” to an “employee”, “residence employee” or a temporary employee furnished to the “insured” to substitute for a permanent “residence employee” arising out of or in the course of the employee's employment by the association of property owners.
The following paragraph is added to A. “Motor Vehicle Liability”:
3. This Exclusion does not apply to Coverage E – Personal Liability with respect to the
ownership, maintenance, operation, or use of an “electric vehicle charging station”.
Analysis
Injury to employees or residence employees, or temporary employees substituting for residence employees, from any of their duties as employees of the association is not covered.
This is confusing language. While the employees or residence employees are employed by the insured, if for some reason they are acting as an employee of the association, there is no coverage for their injuries if the charging station explodes while they are unplugging a vehicle. Employees of the association should be covered by an association policy for its employees. Likewise, if the association provides a temporary butler to the insured because his employee is ill, and while putting the cord away the butler gets a severe shock from the station, there is no coverage since the butler is an association employee.
The motor vehicle liability exclusion applies to motor vehicles of all but certain exceptions, such as motorized handicapped vehicles, nonregistered vehicles used to service the residence, or designed for recreational use off public roads. Electric charging stations are not vehicles, but they are closely used with vehicles. They are also fairly new, so this states that the motor vehicle exclusion does not apply to charging stations.
SECTION II – CONDITIONS
With respect to the coverage provided under this endorsement, Condition A. Limit Of Liability is replaced by the following:
A.Limit Of Liability
1.Subject to Paragraph A.2. below, our total liability under Coverage E for all damages resulting from any one “occurrence” will not be more than the Coverage E Limit Of Liability shown in the Declarations. This limit is the same regardless of the number of “insureds”, claims made or persons injured. All “bodily injury” and “property damage” resulting from any one accident or from continuous or repeated exposure to substantially the same general harmful conditions will be considered to be the result of one “occurrence”.
2.However, our total liability under Coverage E for the total of all damages arising directly or indirectly, in whole or in part, out of the ownership, maintenance or use of an “electric vehicle charging station”, owned by the “insured”, located in the “insured's” designated parking space or located in a common area for the exclusive use of the “insured”, is $1,000,000.
3.This is the most we will pay regardless of the:
a.Number of persons injured;
b.Number of persons whose property is damaged;
c.Number of “insureds”; or
d.Number of “occurrences” or claims made.
Our total liability under Coverage F for all medical expense payable for “bodily injury” to one person as the result of one accident will not be more than the Coverage F Limit Of Liability shown in the Declarations.
Analysis
The limits of liability are pretty straightforward. No more than the amount listed on the declarations will be paid out regardless of the number of insureds, claims made, or persons injured. Likewise all injury from repeated or continuous exposure to the same general harmful conditions will be considered to arise from one occurrence. The limit of liability from loss that arises out of the ownership, maintenance, or use of a charging station that is owned by an insured and located in his designated parking space or common area for his exclusive use is $1,000.000. This is mandated by California regulations.
The limit is the most paid per number of persons injured, whose property is damaged, number of insureds, or number of occurrences or claims made. If cars are parked on either side of the charging station when it explodes, and the sum of all damage to vehicles is over $1,000,000, then not all claimants will be fully compensated for their loss. The policy will not pay out $1,000,000 per vehicle; when the limit is reached, payments cease. The limit for medical payments is applies per person and is not to be more than what is shown on the declarations page as the limit.
CANCELLATION AND NONRENEWAL NOTIFICATION
If we decide to cancel or not to renew this policy, the association of property owners named in the Schedule will be notified in writing.
All other provisions of this policy apply.
Analysis
The cancellation and nonrenewal language is straightforward. If the policy is cancelled or nonrenewed, the association will be notified in writing.
Colorado, HO 24 38, Electric Vehicle Charging Station Liability Coverages
Similar to the California form, the Colorado form is specific to residences with an association of property owners or a landlord. The association or landlord is to be scheduled within fourteen days of their consent for the station to be installed. Again, coverage is for $1,000,000.
DEFINITIONS
Definition 5. which defines “insured” is extended to include the association of property owners or landlord named in the Schedule above, with respect to:
1.Coverage E – Personal Liability; and
2.Coverage F – Medical Payments To Others;
but only with respect to “bodily injury” or “property damage” arising out of the installation, maintenance or use of the “electric vehicle charging system” installed in a location that is provided for the exclusive use of an “insured”.
The following definition is added:
3.”Electric vehicle charging system” means a device that is used to provide electricity to a plug-in electric vehicle or plug-in hybrid vehicle, is designed to ensure that a safe connection has been made between the electric grid and the vehicle and is able to communicate with the vehicle's control system so that electricity flows at an appropriate voltage and current level. An electric vehicle charging system may be wallmounted or pedestal style, and may provide multiple cords to connect with electric vehicles.
An electric vehicle charging system must be certified by Underwriters Laboratories or an equivalent certification, and must comply with the current version of Article 625 of the National Electric Code.
Analysis
The definition of “insured” is expanded to include the association of property owners or landlord listed in the schedule. Expanded coverages are liability only, coverage E personal liability and coverage F medical payments. This extension of coverage applies only in regards to the electric charging station for exclusive use of the insured.
“Electric charging station” is defined per the Colorado statute. In short, the station supplies electricity to a vehicle through a safe connection at a safe rate. The station must be certified by Underwriters Laboratories and must comply with the National Electric Code. These requirements are to ensure that the charging station is safely installed, that the physical connection to the vehicle is safe, and that the communications between the station and the vehicle are safe and that the station does not overload the vehicle.
SECTION II – EXCLUSIONS
This coverage does not apply to “bodily injury” to an “employee”, “residence employee” or a temporary employee furnished to the “insured” to substitute for a permanent “residence employee” arising out of or in the course of the employee's employment by the association of property owners or landlord.
The following paragraph is added to A. “Motor Vehicle Liability”:
3.This exclusion does not apply to Coverage E – Personal Liability with respect to the installation, maintenance or use of an “electric vehicle charging system” installed in a location that is provided for your exclusive use.
CANCELLATION AND NONRENEWAL NOTIFICATION
If we decide to cancel or not to renew this Policy, the person or organization named in the Schedule will be notified in writing.
All other provisions of this Policy apply.
Analysis
The same exclusion of employees of the association or landlord applies. If employees of the insured are acting for the association, or association employees are substituting for the insured's employees, there is no coverage. The form explicitly fails to state that the injuries must be relative to the charging station; however, since this language appears on the charging station endorsement, it looks like ISO expects it to be implied. Likewise, the exclusion for motor vehicle liability does not apply with respect to maintenance, use, or installation of an electric charging station that is provided for the insured's exclusive use. The cancellation and nonrenewal statement is straightforward and needs no further explanation.
Oregon, HO 24 39, Electric Vehicle Charging Station Liability Coverages
The Oregon charging station endorsement is similar to both the California and Colorado forms. The purpose is the same: to provide liability coverage for an association of property owners who have been scheduled on the form for liability from an electric charging station.
DEFINITIONS
Definition 5., which defines “insured”, is extended to include the association of property owners named in the Schedule above, but only with respect to:
1.Coverage E – Personal Liability, but only with respect to “bodily injury” or “property damage” arising out of the ownership, maintenance or use of an “electric vehicle charging station”.
The following definition is added:
2.”Electric vehicle charging station” means a facility:
a.Designed to deliver electrical current for the purpose of charging one or more electric motor vehicles; and b. Owned by the “insured”, located in a:
(1)Parking space, on a lot or in any other area subject to the exclusive use of the “insured”;
(2)Space assigned to the unit and used for the parking or storage of automobiles, trucks, boats, campers or other vehicles or equipment; or
(3)Limited common element with the written approval of the unit owner of each unit to which use of the limited common element is reserved.
Analysis
Once again, this form is in response to state regulations requiring $1,000,000 of liability coverage to be extended to associations of property owners when a charging station is added to an area designated for an insured's use.
“Electric charging station” is defined as a being designed to deliver electrical charge to one or more electric motor vehicles, owned by the insured and located in a parking space for the insured's exclusive use, in a space assigned to the unit and used for the parking of vehicles, or a limited common element with the written approval of the unit owners of each unit to which the limited element is reserved. A limited common element is an element that is designated for use by owners of certain units, but not all units in a complex. The swimming pool is a common element and open to everyone in the complex. A large patio that adjoins four units is a limited common element; it is restricted to just those four units that adjoin the patio.
SECTION II – EXCLUSIONS
The following is added with respect to “electric vehicle charging station” liability coverages:
This coverage does not apply to “bodily injury” to an “employee”, “residence employee” or a temporary employee furnished to the “insured” to substitute for a permanent “residence employee” arising out of or in the course of the employee's employment by the association of property owners.
The following paragraph is added to A. “Motor Vehicle Liability”:
3. This exclusion does not apply to Coverage E – Personal Liability with respect to the
ownership, maintenance, operation or use of an “electric vehicle charging station”.
Analysis
This form excludes coverage for employees, residence employees or temporary employees of the insured who are acting for the association or association employees acting temporarily for the benefit of the insured with respect to the charging station. This is the same as the exclusion in the California endorsement. Likewise, the same exception to the exclusion for motor vehicles applies. An electric charging station, while something that is used with vehicles, is not a motor vehicle.
SECTION II – CONDITIONS
With respect to the coverage provided under this endorsement, Condition A. Limit Of Liability is replaced by the following:
A.Limit Of Liability
1.Subject to Paragraph A.2. below, our total liability under Coverage E for all damages resulting from any one “occurrence” will not be more than the Coverage E Limit Of Liability shown in the Declarations. This limit is the same regardless of the number of “insureds”, claims made or persons injured. All “bodily injury” and “property damage” resulting from any one accident or from continuous or repeated exposure to substantially the same general harmful conditions will be considered to be the result of one “occurrence”.
2.However, our total liability under Coverage E for the total of all damages arising directly or indirectly, in whole or in part, out of the ownership, maintenance or use of an “electric vehicle charging station”, owned by the “insured”, located in a:
a.Parking space, on a lot or in any other area subject to the exclusive use of the “insured”;
b.Space assigned to the unit and used for the parking or storage of automobiles, trucks, boats, campers or other vehicles or equipment; or
c.Limited common element with the written approval of the unit owner of each unit to which use of the limited common element is reserved; is $1,000,000.
3.This is the most we will pay regardless of the:
a.Number of persons injured;
b.Number of persons whose property is damaged;
c.Number of “insureds”; or
d.Number of “occurrences” or claims made.
Our total liability under Coverage F for all medical expense payable for “bodily injury” to one person as the result of one accident will not be more than the Coverage F Limit Of Liability shown in the Declarations.
CANCELLATION AND NONRENEWAL NOTIFICATION
If we decide to cancel or not to renew this Policy, the association of property owners named in the Schedule will be notified in writing.
All other provisions of this Policy apply.
Analysis
Standard conditions apply. The total liability applies regardless of the number of insureds, claims made, or injured parties, and all damages from one continuous or repeated exposure to the same harmful conditions are considered to be one occurrence. Liability for losses arising directly or indirectly from the electric vehicle charging station has limits of $1,000,000 per state requirements. Again, this is the most per persons injured, property damaged, or claims made. The coverage F limit is the limit that is shown on the declarations. The cancellation and nonrenewal provisions are standard.