Lithium batteries power a lot of the equipment small businesses rely on every day: phones, power tools, e-bikes and more. They’re efficient and convenient, but they also come with a fire risk that’s easy to underestimate. When something goes wrong with a lithium battery, it doesn’t always give much warning, and the resulting fire can escalate faster than most business owners expect.
Understanding how these fires start, and how to prevent them, is one of the most practical steps a small business can take to protect its people, property, and operations.
Why Lithium Battery Fires Are Different
Most business owners are used to thinking about fire risk in terms of open flames, faulty wiring, or flammable storage. Lithium battery fires behave differently, and that difference matters:
- Thermal runaway: This is the technical term for a battery that overheats uncontrollably, often leading to fire or even explosion.
- Intense heat: Lithium battery fires burn hotter and spread faster than fires involving more conventional materials.
- Re-ignition risk: Even after a fire appears to be out, a lithium battery can reignite.
- Stranded energy: A battery that’s damaged or seemingly “dead” can still hold enough residual energy to ignite later.
Because of these characteristics, prevention is far more effective and far less costly than response.
What Typically Causes Lithium Battery Losses
Most lithium battery incidents can be traced back to a handful of preventable causes:
- Overcharging or leaving batteries charging unattended
- Using chargers or batteries not approved by the manufacturer
- Mechanical damage from impact, punctures, or crushing
- Exposure to high heat
- Defective or aging batteries that haven’t been taken out of service
If any of these sound like everyday occurrences at your business, it’s worth a closer look at current practices.
Risk Controls Every Business Should Have in Place
Safe Charging Practices
- Charge only with manufacturer-approved chargers and batteries
- Charge on non-combustible surfaces
- Avoid charging overnight or leaving batteries unattended
- Keep charging areas clear of combustible materials
Storage and Handling
- Store batteries in cool, dry, well-ventilated spaces
- Remove damaged or defective batteries from service immediately
- Protect batteries from physical damage during use and transport
Inspection and Maintenance
- Train employees to recognize warning signs: swelling, cracking, or overheating
- Put a routine inspection schedule in place rather than relying on ad-hoc checks
Disposal and Recycling
- Use approved battery recycling programs
- Never dispose of lithium batteries in general waste
Building Battery Safety Into Daily Operations
Beyond individual handling practices, businesses benefit from structural and policy-level controls:
- Designate specific, controlled charging locations
- Put a formal battery safety policy in writing
- Train employees on safe use, hazard recognition, and emergency procedures
- Keep battery storage separated from flammable materials
These steps don’t require major investment, but they do require consistency — and they’re often the difference between a near-miss and a serious loss.
If a Battery Fire Occurs
Despite the best prevention efforts, it’s still important to know how to respond:
- Evacuate the area immediately at the first sign of battery failure
- Contact emergency services right away
- Understand that lithium battery fires can escalate quickly and may create explosive conditions
- Water is generally the recommended extinguishing agent for these fires
- Do not attempt to fight a large or unstable fire — leave that to trained responders
Regulatory Guidance to Know
The NFPA 855 Standard offers guidance on installing and maintaining energy storage systems safely, including steps to reduce fire and electrical hazards. Businesses using lithium battery equipment at any scale should be familiar with its recommendations, particularly if storage systems are involved.
Lithium battery fires are high-severity, but they’re largely preventable. The businesses that fare best are the ones that treat battery safety as a standing operational priority not a one-time training session. Consistent charging practices, routine inspections, clear disposal protocols, and employee awareness go a long way toward reducing exposure.
Additional Resource: NFPA Lithium-Ion Battery Safety
Download a free “Lithium Battery Safety” handout to share with your employees. Download Here.
To explore more resources for your business, visit societyinsurance.com.
