What Wisconsin Business Owners Need to Know About E-scooter Liability

Anna C. Eager is an attorney at Nowlan Law, with offices in Madison, Janesville, Beloit, and Sun Prairie, Wisconsin.

As electric scooters surge in popularity across Wisconsin, business owners face a growing set of legal questions, and the answers aren’t always straightforward.

Whether you operate a scooter rental shop, a hotel with an amenity fleet, a delivery service, or a retail store that sells e-scooters, understanding your liability exposure is essential. Wisconsin law is still catching up to the e-scooter boom, and that gap can pose real risks for unprepared businesses.

How Wisconsin Classifies E-scooters

Wisconsin law categorizes electric scooters into three classes:

• Class 1: Pedal-assist only, up to 20 mph
• Class 2: Throttle-assisted, up to 20 mph
• Class 3: Pedal-assist, up to 28 mph

Each class carries different rules about where e-scooters can be ridden, such as trails, roads, and scooter paths, and those distinctions matter when determining fault and liability after an accident.

What Kind of Business Liability Are We Talking About?

1. Rental & Fleet Operations

If your business rents e-scooters or maintains a guest fleet (hotels, resorts, campgrounds, tour operators), you have a duty to provide safe, properly maintained equipment. If a rider is injured due to a mechanical failure, improper maintenance, or a defective unit you failed to address, you could face a premises liability or negligence claim.

Key risk areas:

• Failure to inspect and maintain scooters regularly
• Renting Class 3 scooters to riders unfamiliar with higher speeds
• Insufficient waivers or liability releases
• Failure to require or provide helmets

2. Retail Sales & Product Liability

Selling e-scooters puts you in the chain of commerce. If a scooter you sold has a defective battery, faulty brakes, or a design flaw, and someone is injured, you may be named in a product liability lawsuit alongside the manufacturer.

Wisconsin follows strict liability principles for defective products, meaning you could be held responsible even if you did not know about the defect.

 Protect yourself by:

• Working only with reputable manufacturers and distributors
• Documenting all sales and any safety disclosures made to customers
• Carrying appropriate product liability insurance

3. Delivery & Commercial Use

If your business uses e-scooters for deliveries or employee transportation, you may be liable for accidents caused by your riders while on the job. Wisconsin’s respondeat superior doctrine can hold employers responsible for employee negligence committed within the scope of employment.

The Insurance Gap You Need to Know About

Standard commercial general liability (CGL) policies may not automatically cover e-scooter-related incidents especially for Class 3 scooters that approach moped speeds. Many business owners are surprised to discover their existing policy excludes motorized vehicles, which some insurers classify as scooters.

Steps to take:

• Review your CGL policy language carefully with your agent
• Ask specifically about  e-scooters  and micromobility coverage
• Consider a commercial auto endorsement if your business uses  e-scooters  for deliveries or transport
• If you rent or loan  e-scooters, explore a dedicated recreational or rental equipment policy

Liability Waivers: Are They Enough?

Waivers can be a valuable tool, but they’re not bulletproof. Wisconsin courts will scrutinize waivers closely. A poorly drafted release may be thrown out entirely if it:

• It is too vague to cover the specific incident
• Wasn’t presented or explained clearly before the activity
• Attempts to waive liability for gross negligence or reckless conduct

A well-drafted, Wisconsin-compliant waiver tailored to your specific business operations is far more likely to hold up in court.

Trail and Property Access Liability

If you allow customers or guests to ride e-scooters on trails or property you own or manage, you may have additional duties under Wisconsin’s safe place statute or recreational use statutes. Posting appropriate signage, enforcing class restrictions, and maintaining safe surfaces can all reduce your exposure.

What Business Owners Should Do Now

E-scooter liability is a moving target as laws, regulations, and court decisions continue to evolve. Here’s a practical checklist:

Talk to an Attorney Before an Incident, Not After

Waiting until someone is injured to think about e-scooter liability is a costly mistake. Nowlan Law works with Wisconsin businesses to identify risks before they become litigation. Whether you need a liability waiver drafted, an insurance coverage review, or general business counsel, our team is here to help.

Contact Nowlan Law today to schedule a consultation and ensure your business is protected as the e-scooter industry continues to grow.

This blog post is for informational purposes only and does not constitute legal advice. Contact an attorney for guidance specific to your situation.