E-Bikes Are Here to Stay: What Employers, Property Owners, Municipalities, and Insurers Need to Know

Kenney Shelton Liptak Nowak LLP | Insurance Coverage & Casualty Litigation Update

By: Katelyn E. Lamendola, Esq. & Megan K. Barth, Esq. 

Communities across Western New York are confronting a sharp rise in electric bike accidents. Local news outlets have documented a growing number of serious collisions involving e-bikes, including fatal crashes and incidents involving riders travelling at dangerous speeds on shared paths and roadways. 

These recent accidents highlight an issue that insurers, municipalities, employers, and property owners are likely to encounter with increasing frequency. E-bike and e-scooter use has grown quickly, while the laws and insurance policies governing these devices have not always kept pace. The result is a growing number of questions about how a particular device should be classified, where it may legally be operated, and what insurance coverage may be available when an accident occurs. The uptick in these types of accidents has prompted municipalities across the region to adopt or modify local regulations governing e-bikes and similar devices. 

New Rules Across Western New York

The Town of Clarence amended its local code in August 2025 specifically to address e-bikes and other motorized recreational vehicles on Town trails. The prior bicycle provision addressed traditional bicycles but did not account for e-bikes, reflecting rules that had been written before the recent surge and availability in high-powered electric bikes. The amendment gives the Erie County Sheriff's Office and New York State Police the authority to impound e-bikes, e-scooters, and gas-powered dirt bikes operated recklessly on town trails, with fines up to $250 and up to 15 days in jail for violations. Town officials cited riders clocked at speeds exceeding 50 miles per hour on shared paths. The City of Tonawanda, East Aurora, and other municipalities have likewise recently adopted or amended local rules governing where and how e-bikes and similar devices may be operated. 

These measures do not prohibit e-bike ownership or use outright. Instead, local governments are attempting to address reckless operation, excessive speeds, and devices that may be marketed or described as e-bikes but do not fall within New York's legal definition of an e-bike. 

Where State Law Draws the Lines

New York's Vehicle and Traffic Law divides e-bikes into three classes: 

• A Class 1 e-bike provides pedal assistance only and cuts off at 20 miles per hour. 

• A Class 2 e-bike adds a throttle but is likewise capped at 20 miles per hour. 

• A Class 3 e-bike, which permit assistance up to 25 miles per hour, is authorized only within cities having a population of one million or more (i.e. New York City). 

For most riders in Western New York, one of the most important questions is whether the device qualifies as an e-bike under the Vehicle and Traffic Law. Not every device sold or ridden as an "e-bike" necessarily does. Devices with larger motors or higher top speeds may instead fall within the Vehicle and Traffic Law's definitions applicable to mopeds or limited-use motorcycles, which require registration, licensing, and insurance. By contrast, e-bikes falling within any of the three statutory classes do not require a driver's license, registration, or insurance.

Devices that fall within New York's definition of an e-bike are subject to further restrictions on where and how they may be operated. These devices may generally be used on highways with a posted speed limit of 30 miles per hour or less, but municipalities retain authority to further regulate the time, place, and manner of their operation. E-bikes may not be operated on sidewalks unless permitted by local law or ordinance. Additionally, depending on the specific device being ridden, such as an e-bike or e-scooter, there may be specific rules governing which side of the road those devices must be operated on. Riders must also be at least 16 years old to operate an e-bike in New York State.

Insurance Implications

Homeowners and Renters Policies

Coverage for an e-bike under a homeowners or renters policy depends heavily on the language of the particular policy. Motor vehicle or motorized vehicle exclusions may come into play, and carriers may treat Class 1 and Class 2 e-bikes differently depending on the policy form and applicable exceptions. Coverage for damage to or theft of the e-bike itself may also be subject to separate limits or exclusions. As a result, policyholders are often surprised to discover their policy does not provide coverage for such damage or theft. Early determination of the device’s classification and specifications is therefore essential to any coverage analysis. 

Auto and No-Fault Coverage

E-bikes are not "motor vehicles" for purposes of New York's no-fault law under Insurance Law § 5102(f). An e-bike rider injured in a collision with a motor vehicle may be entitled to no-fault benefits through the applicable motor vehicle policy in much the same way as a bicyclist or pedestrian, depending on the circumstances of the accident and the available coverage. However, when the e-bike itself strikes a pedestrian or another rider, no-fault coverage is unavailable, thereby leaving the injured person to pursue a liability claim against the rider and potentially raising questions as to whether the rider has any applicable liability coverage.

Commercial General Liability 

E-bikes also present an array of issues outside the context of roadway accidents. Property owners, landlords, and employers increasingly have to consider the location e-bikes are stored and whether batteries may be charged on their premises. Lithium-ion battery fires can result in significant property damage and bodily injury, particularly when charging takes place indoors or in areas not designed for that purpose. 

CGL underwriters are even beginning to build dedicated coverage tracks for battery-related exposures and are asking about e-bike storage and charging practices during the underwriting and renewal process. For commercial insureds, the growing exposure warrants a closer look at existing CGL and property coverage, including any exclusions or limitations applicable to lithium-ion batteries, motorized devices, or charging operations.

Workers’ Compensation

Employers that provide e-bikes to employees, or permit employees to use them for work-related activities such as deliveries, mail runs, or campus patrols, should also consider the workers' compensation implications. An injury arising out of and in the course of employment may give rise to a workers' compensation claim regardless of whether the employee was using a traditional bicycle, e-bike, or another vehicle.

The growing use of e-bikes by delivery workers also presents more complicated questions involving worker classification and available insurance coverage, particularly in the gig economy. Gig-economy delivery riders classified as independent contractors typically fall outside that system entirely, which is why pending state legislation would require delivery platforms to carry personal injury liability insurance covering their riders.

Litigation Trends Taking Shape

E-bikes can give rise to a range of claims depending on how and where the accident occurs. In addition to ordinary negligence claims against riders, litigation may involve product liability claims arising from defective batteries or brakes, premises liability claims involving storage or charging, and negligent entrustment claims where an employer provides an e-bike for work-related use.

New York's comparative negligence rules also make the conduct of the rider an important part of the liability analysis. A rider's speed, compliance with traffic controls, where the device was being operated, and whether the device was legally classified as an e-bike may all bear on comparative fault. A plaintiff's own negligence will not necessarily bar recovery, but it may reduce the damages recoverable.

The nature of e-bike accidents also makes early evidence preservation important. Depending on the circumstances, relevant evidence may include e-bike telemetry or other electronic data, delivery-app GPS records, nearby surveillance or doorbell footage, phone records, and purchase, modification, or maintenance records. These materials may help establish not only how the accident occurred, but also the specifications of the device and whether it qualified as an e-bike under New York law.

Practical Takeaways

• Classification drives everything. The fact that a rider, police report, or manufacturer identifies a device as an "e-bike" does not necessarily mean it qualifies as one under New York law. Whether the device falls within one of the three statutory classes of e-bike or instead qualifies as a moped or other motorized vehicle can affect liability, applicable registration and insurance requirements, and which policies, if any, may respond. Motor specifications, maximum assisted speed, throttle capability, and any modifications should therefore be determined at the outset.

• Review policy language before a claim occurs. Both insurers and policyholders should understand how homeowners, renters, commercial general liability, property, and automobile policies address e-bikes and other motorized devices, rather than assuming -traditional bicycle coverage applies.

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  Effective for all actions commenced on or after May 26, 2026, New York’s amended CPLR 1411 bars recovery where a plaintiff is more than 50% at fault in certain motor vehicle personal injury actions subject to Article 51 of the Insurance Law. That limitation does not apply to claims arising solely from the operation of an e-bike because an e-bike is not a “motor vehicle” subject to the no-fault law. 

• Employers should account for e-bike use. Employers that provide e-bikes or allow employees to use these devices for work should review their workers' compensation, general liability, and auto coverage for potential gaps in coverage. Employers should also consider appropriate training and implementing policies governing the use, storage, and charging of e-bikes on their premises.

• Municipalities should  evaluate local e-bike regulations and enforcement. As the use of e-bikes continues to increase, municipalities should consider whether existing rules adequately address where and how these devices are being operated and whether additional enforcement measures are warranted.

• Move fast on evidence preservation. E-bike data, app records, surveillance footage, and other electronic evidence may be particularly important in determining speed, location, device classification, and how an accident occurred.

E-bikes and other similar devices are unlikely to disappear from Western New York's roads and trails. As their use continues to grow, the legal issues surrounding these devices will increasingly turn on the details: what type of device was involved, how and where it was being used, and the language of the applicable insurance policies. For insurers, employers, property owners, and municipalities, understanding these issues now can help identify and address potential exposures before a claim arises.

Kenney Shelton Liptak Nowak LLP counsels insurers, municipalities, property owners, and employers on liability and coverage issues arising from e-bikes and other micromobility devices. For questions about how these developments may affect pending or future matters, contact our insurance coverage and casualty litigation team.