Discover the trend, meet the trendspotter.
The expansion of EV charging
“In the commercial space, you can honestly see EV charging anywhere now. With the announcement of more vehicle manufacturers going electric, you’ll see more businesses opting to have some type of solution for adopters of EV.”
HSB Senior Underwriting Methods and Standard Specialist
You probably don’t think about the expansion of electrical vehicle charging equipment. We do.
What’s driving EV charger expansion?
The 2021 Bipartisan Infrastructure Law included $7.5 billion in EV charging funding.1 The current administration hopes to see a national network of 500,000 EV chargers built along highways and within communities, while also having EVs make up at least 50% of new car sales by 2030.2
The overall objective is to continue to develop the domestic EV industry. Public EV charging availability has increased 63% since 2020.3 Over 130,000 public chargers now exist, and there are more than 3 million EVs on the road.4 In the past two years, companies have announced more than $100 billion in manufacturing investments for EVs, chargers, and batteries.5
Other factors accelerating the growth of EVs include:
- Government subsidies or incentives for personal consumers and businesses
- Lower initial costs of EV ownership
- Greater variety of EV options available from manufacturers
- Advancements in battery technology allowing more energy into each cell
- U.S. Public Electric Vehicle Charging Infrastructure Growth
Alleviating a major EV roadblock
“Range anxiety” is a legitimate worry for current and prospective EV drivers. It refers to the fear of running out of power before finding a charging facility that’s both available and functional. This concern often becomes exacerbated for drivers in unfamiliar areas or those driving long distances.
As EV sales rise, the need for more charging stations continues to grow in order to relieve these worries. It also increases the pressure on EV charging providers to maintain their equipment so drivers can power their vehicles.
Primary EV charging options
Type-2 AC charger for home/work: The most common charger arrangement for homes or businesses. In this situation, a special unit installed in a home or business uses a 240V (in residential applications) or 208V (in commercial applications) to provide electricity to the vehicle’s built-in charger. While this setup offers convenience, it usually takes many hours to fully charge the battery.
Type-3 DC fast charger for long distance/industrial use: Designed to charge batteries in less than an hour, the fast charger delivers a high amount of energy directly to the battery, bypassing the vehicle’s built-in charger. Due to its immense power requirement, the fast charger relies on a utility supply that’s typically reserved for large commercial or industrial users.
Examples of where you might find fast chargers for public use include parking garages, shopping mall and grocery store parking lots, and even traditional fuel stations. Private-use chargers could potentially be found at organizations with a large fleet of vehicles, such as school buses, trucks, postal delivery vehicles, municipality vehicles, and package delivery vehicles.
How HSB is taking on the trend
EVs and their charging infrastructure may be a new concept for many. But we’ve followed this technological evolution since its inception more than 10 years ago.
HSB continues to develop relevant new products and risk management services that keep pace with our technologically changing world in order to provide modern-day risk solutions. Within the EV industry, this includes equipment breakdown and property all-risk insurance, as well as our overall engineering expertise for EV equipment.
At HSB, we’re constantly watching for trends, studying them, and identifying solutions.