Hispania, an insurance and reinsurance brokerage, Broker at Lloyd’s, and Coverholder at Lloyd’s, has launched one of the first insurance policies for lithium-ion batteries in Europe. This development provides greater financial support for projects related to sustainability.

Artur Castany, Technical Director of Reinsurance and Open Market at the firm, explains that as a recent and high-risk resource, lithium-ion battery storage faces various insurance challenges.

“The mass use of lithium batteries is very recent and poses a new challenge for the insurance industry due to their high risk and value,” the executive explains in an interview with Energía Estratégica España.

For Hispania, implementing specific coverage for these technologies not only addresses the need for risk management but also opens doors for investment and financing in sustainable projects.

According to Castany, “The ability to protect these storage facilities provides security to the stakeholders, resolving uncertainties about potential incidents.”

He also highlights that this policy is presented as an all-risk coverage with stringent safety measures and handling procedures. “It has few exclusions and is conditioned upon compliance with specific safety measures and management procedures, such as maximum battery charge levels or handling systems.”

The coverage includes clauses that require highly specialised safety systems, focused on minimising the risk of accidents and facilitating proper handling at every stage of storage and transport.

Regarding the main areas of interest, Hispania targets the automotive sector, particularly companies involved in Just in Time production models.

“Possibly, the automotive industry, and more specifically the logistics companies supplying lithium-ion batteries based on Just in Time production, could be the most interested parties,” notes Hispania’s representative.

With the expansion of electric mobility, insurance support in handling these batteries is crucial for consolidating a safe and efficient supply chain.

Value and Coverage Calculation

The policy is tailored to the client’s needs through an adjustable premium scheme that aligns with the specific conditions of each contract.

Castany comments that “Most logistics companies likely to be interested in this type of insurance typically have a service contract that clearly defines their responsibilities and the values of the equipment they are managing and safeguarding.”

This allows the coverage value to be calculated based on annual variations in the volume and value of the stored or in-transit equipment, providing coverage that adapts to the sector’s dynamics.

For Hispania, implementing this policy represents a pioneering achievement in the European context.

Through this initiative, the firm contributes not only to asset protection but also to developing financial infrastructure for sustainable energy and clean mobility projects, key priorities on Europe’s current agenda.

With offices in Madrid, London, Mexico, and Lisbon, Hispania positions itself at the forefront of the international insurance market in the fields of electric mobility and energy storage, offering highly specialised services.

The firm is committed to innovation and managing high-complexity risks, aiming to foster investor and bank confidence in critical infrastructure projects.