Managing Risks in Battery-Related Marine Fires: A Practical Perspective on Investigation, Subrogation

August 9 ------ As lithium-ion batteries continue to make their way into the marine space whether through vessel systems, transported electric vehicles, or everyday devices onboard we are starting to see a different type of fire loss than most of us have traditionally dealt with.

These events are not necessarily more frequent, but when they occur, they tend to be severe. In many cases, they result in prolonged fires or even total loss of a vessel or cargo. That aligns with broader industry findings that fires remain one of the costliest drivers of marine insurance losses, particularly when lithium-ion batteries are involved (Allianz Global Corporate & Specialty [AGCS], 2022).

At the center of many of these incidents is thermal runaway. Once initiated, it becomes a self-sustaining reaction that is difficult to control. The fire can escalate quickly, producing extreme heat and flammable gases, especially in confined spaces typical of marine environments (U.S. Coast Guard Research and Development Center [USCG RDC], 2025). From a practical standpoint, that changes how these losses need to be approached from the beginning.

Where the Risk Is Emerging

Battery-related fire risks are showing up across several areas of the marine industry:

• Hybrid and electric propulsion systems

• Electric vehicles transported on car carriers

• Energy storage systems onboard

• Consumer lithium-ion devices stored or charging onboard vessels

The common factor is the high energy density of these systems. When failures occur whether from physical damage, improper charging, or internal defects, they can develop into fires that are difficult to suppress and capable of rapid spread.

Recent incidents involving vessels carrying electric vehicles or battery systems highlight how quickly these events can escalate into total losses (International Maritime Rescue Federation [IMRF], 2025). These fires do not behave like conventional fuel-based fires and often require different suppression and response strategies.

What This Means for Investigations

From an investigative standpoint, one of the most immediate challenges is scene condition. Battery-related fires frequently destroy the area of origin. By the time investigators gain access, suppression efforts, heat damage, and environmental exposure have significantly altered or eliminated key evidence.

As a result, origin and cause determinations often require a broader analytical approach:

• Reviewing system design and installation

• Evaluating charging practices and electrical systems

• Examining maintenance records and prior issues

• Identifying potential defects or known failure points

• Utilizing available electronic data from onboard systems

In many cases, no single piece of evidence will definitively establish cause. Instead, the conclusion is built from multiple lines of information that collectively support the most probable scenario.

Another critical factor is timing. Fire investigation guidance emphasizes that the entire fire scene should be treated as potential evidence and preserved accordingly (National Fire Protection Association [NFPA], 2024). In the marine environment, however, this must be balanced against salvage operations, environmental concerns, and vessel safety. If evidence is not identified and preserved early, it may be lost entirely.

Subrogation Considerations

Battery-related fires can present significant challenges when it comes to recovery. Subrogation depends on establishing causation and identifying responsible parties. In marine claims, this typically requires showing that a specific peril or failure led to the loss (DWF Group, 2025).

The difficulty with lithium-ion battery fires is that the initiating event is often destroyed. Thermal runaway can propagate quickly across battery cells, leaving limited evidence of where and how the failure began (DWF Group, 2025).

This impacts both the investigation and the ability to pursue recovery. Additionally, there are often multiple parties involved:

• Battery manufacturers

• Equipment suppliers and integrators

• Vessel operators

• Maintenance providers

Early identification of these parties and providing them the opportunity to participate in inspections is critical. Delays or incomplete evidence preservation can limit or eliminate recovery opportunities.

From a practical standpoint, subrogation should be considered early in the claim. Decisions made during the initial stages of the investigation, particularly regarding evidence handling and documentation, can have a direct impact on the viability of recovery.

Moving Forward

Battery-related marine fire risks will continue to evolve as electrification expands across the industry.

The key takeaway is that this is a severity-driven exposure. Even if these fires are less frequent, the potential losses are significant. Managing this risk effectively requires:

• Early involvement of experienced investigators and technical experts

• A broader investigative approach beyond traditional fire pattern analysis

• Careful attention to evidence preservation and documentation

• Integration of subrogation strategy early in the process

The fundamentals of investigation remain the same, but the path to establishing cause and supporting recovery often requires a more deliberate and multidisciplinary approach.

Source: marinelink.com