Cords which will be used outdoors, in wet areas, around oils, or exposed to sunlight for long periods of time should be selected for such specific conditions.
Some extension cords also incorporate safety features such as a polarized plug and receptacle, grounded terminals, a "power-on" indicator, a fusible link, or even a residual-current device (also known as a ground-fault circuit interrupter or GFCI).
This term is also used to refer to the whole unit of a short extension cord terminating in a power strip.
A removable power cord is similar but much shorter, and is designed to connect an appliance to a mains outlet.
In Europe and elsewhere where the normal domestic voltage is around 230 V there may be less risk of causing fire through overheating of cables for any given power due to the lower current.
The exposed wires of an extension cord with damaged insulation can also present a shock hazard to people and animals.
This is because the portion of cord on the reel is not exposed to air causing the loss power, (the result of its series resistance), not to dissipate.
The heat produced from the resistance cannot dissipate and is instead trapped between the tightly coiled cable, leading to the a fire or shock.
[7] Additionally, the ESFI recommends to never use an extension cord that is covered by a rug or blanket, or that is run through a ceiling or wall, since the heat may not be able to dissipate appropriately.
[6] Extension cords sold in the United States may contain lead in the PVC insulation sheathing.
California Proposition 65 (1986) requires manufacturers to warn consumers when products contain toxic chemicals.
Many extension cords carry warning labels that advise consumers to wash their hands after handling them.
The European directive, RoHS, restricts the use of hazardous materials like lead in the manufacture of electrical products such as extension cords.
Periodic inspection is especially important for cords that may be used in place for a long time, for instance behind furniture, where damage may go unnoticed and by chance conditions are right for a fire or electrical shock incident to occur (e.g. some dust or paper falls near the arcing wire, or a liquid spill occurs and flows to the exposed wire).