E-Bikes & Scooters: A New Liability For Recovery Programs

In many of the metropolitan areas we serve, we are seeing a new trend emerge within the recovery community. To help residents get to and from work more easily, programs are beginning to purchase fleets of e-bikes or electric scooters. It seems like a win-win: it’s cost-effective, it provides residents with independence, and it’s easier than managing a 15-passenger van.

However, from a risk management perspective, this “convenience” is creating a massive liability gap that many operators don’t see coming until it’s too late.

Daryl Henry, Managing Partner at Bitner Henry Insurance Group, and Chris Graham, a Bitner Henry agent specializing in recovery and sober living risks, recently sat down to unpack why these “mini-bikes” are causing such a headache for insurance coverage.

Why Can’t E-Bikes and Scooters Be Easily Classified?

The primary issue with e-bikes and scooters is that they often fall into a “no-man’s land” between insurance policies.

“If it’s an e-bike or a scooter, do you think that’s General Liability or Auto?” Daryl Henry asks. “We think it would be hard to get these things insured on a commercial auto policy because they’re not tagged for road use. But General Liability typically excludes motorized vehicles.”

This creates a “gray area” that insurance carriers can use to deny a claim.

What’s Wrong With Providing E-Books and Scooters?

The risk increases exponentially when the program owns the equipment. When a recovery center provides the vehicle, even if it’s just a scooter, they take on the onus of its maintenance, safety, and usage.

“You’re basically putting one of your residents behind a little mini-bike… just because it says ‘bicycle’ or ‘scooter’ doesn’t mean it’s safe,” Chris Graham warns.

Graham and Henry point out a likely (and terrifying) scenario: A resident takes a program-owned e-bike, doesn’t wear a helmet, and gets into a collision at an intersection. “There’s a really good chance you’re going to see a lawsuit against the recovery center,” Graham says. “The family or friends are going to come back and say, ‘It was your e-bike. You bought it. You provided it.’ The responsibility is on you.”

What Should Recovery Programs Do if They Want to Self-Transport?

Does this mean residents shouldn’t use e-bikes? Not necessarily. But it does mean the program shouldn’t be the one providing them.

“If they own the e-bike in their personal name and they’re using it, you cut out a lot of the problems,” says Daryl Henry.

By having residents provide their own transportation, the liability shifts away from the organization. Chris Graham agrees: “You would want to make sure you detail that out in your policies and have them sign off that they are providing their own transportation. You’re shifting the liability away from you to them.”

Parting Thoughts for 2026

In an era where personal injury attorneys are more aggressive than ever, recovery programs cannot afford to create “uninsured” risks. Providing an e-bike might feel like a helpful gesture, but without the ability to properly insure it, you are gambling with the future of your ministry.

As Chris Graham puts it: “It’s much easier to not put it in place upfront than it is to put yourself in a situation where you have a major gap in coverage.”