A new bill introduced in the New York state Assembly—A.4865—would, if passed, mandate fire insurance coverage for any building in which electric-assisted bicycles—e-bikes—are repaired, sold, rented or stored for these purposes.
What the bill proposes
If passed, A.4865 would amend the General Business Law by adding a new section, Section 391-X, which would require property owners housing e-bike businesses to:
- Carry fire insurance with at least $1 million in coverage, plus an additional $100,000 per tenant if the building includes residential units.
- Maintain a certificate of insurance as proof of compliance.
- Undergo an inspection after any fire-related incident before resuming e-bike storage or operations.
The bill broadly defines e-bikes to include not just the bicycles, but also their batteries and electrical systems—components that have been linked to a growing number of fire hazards in New York City and other urban areas.
Why fire insurance?
The rise of lithium-ion battery fires has become a significant concern in New York state, with several deadly blazes attributed to faulty or improperly charged e-bike batteries. The high-energy batteries used in many cheap or unregulated models have been known to overheat, catch fire and, in some cases, explode.
The NYC Fire Department has repeatedly raised alarms about the dangers of e-bike batteries, and the city has enacted restrictions on certain battery types. However, insurance requirements for buildings that house these businesses have not been explicitly mandated—until now, if this bill were to pass.
Political reality: A Republican bill in a Democratic Legislature
Despite the safety concerns that A.4865 would address, the bill faces a steep uphill battle. The state Assembly and Senate are overwhelmingly controlled by Democrats, and Republican-sponsored bills rarely gain traction.
Even if the bill were to advance out of the Committee on Consumer Affairs and Protection, it would need significant Democratic support to pass—a challenging prospect given the partisan divide on regulatory and business-related policies.
Additionally, opposition from small-business owners in the e-bike industry could further weaken its chances. Many small e-bike repair shops and rental businesses already struggle with insurance costs, and mandating $1 million in fire coverage could be seen as an economic burden.
What’s next?
While A.4865 is unlikely to become law, the conversation around e-bike safety regulations is far from over. The bill reflects growing legislative interest in addressing fire risks related to e-bikes and lithium-ion batteries.
Even if this specific measure fails, future efforts—potentially from Democratic lawmakers—could push for stricter fire safety measures, including stronger battery regulations rather than mandatory insurance, building code updates for properties storing e-bikes and fire safety training requirements for e-bike retailers and repair shops.
For now, businesses dealing in e-bikes should stay vigilant about fire risks, battery storage best practices and evolving insurance requirements—because even if this bill doesn’t pass, stricter regulations are likely coming.
Bradford J. Lachut, Esq.
Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.
