4 Ways to Save Money on Insurance for Your Propane or Petroleum Company

By Frank Thompson on Oct 02 in Safety & Loss Prevention.

If you’ve worked in the propane industry for a while, you’re likely aware that serious propane leaks and explosions are relatively rare. But you also know that when they do happen, they can be devastating in many ways. In fact, every year, propane-related disasters cause millions of dollars in property damage, in addition to serious injuries and death in the worst cases. That’s why having the right propane insurance coverage is critical to protect your company. But you don’t have to break your budget to get the coverage you need for your business in the propane or petroleum industry. There are some simple ways to save money on insurance. Take a look at a few of them before you get an insurance policy for your business.

Choose an Insurer That Has Experience with Companies Like Yours

First, make sure you pick an insurance company that has worked with businesses in the propane and petroleum field. This way, you’ll be sure to get specialized coverage that you can actually use, rather than a policy with coverage that just doesn’t apply to your company. More importantly, you’ll get the coverage you will likely use in case the worst occurs. After all, it’s not helpful or cost effective to pay for coverage you’ll never use, and it can be downright disastrous to not have the coverage you need if something goes wrong. So one of the simplest ways to save money is to go with an insurance company that has all the solutions you need, from Safety & Loss Prevention to Cyber Liability coverage.

Find Out About How to Prevent Losses

Another option to save money on propane or petroleum insurance is to look for ways to prevent losses. Most propane insurance companies are happy to help you do this. In fact, some offer on-site inspections that will let you know about possible hazards that you can fix before you get insurance. For example, at PT Risk Management, we offer a quarterly risk assessment with in-person site inspections where we can examine the tanks, fuel dispensers, bottle fill stations, and more to let you know how to improve safety. We might also identify equipment that you should get specific coverage for if you haven’t already, which can save you a lot of money if anything happens to it. Our goal is to make sure you have complete coverage while also being proactive by minimizing your risk exposure and reducing the odds of you having to make a claim. This way, we can help make sure you’re fully insured and keep premiums as low as possible.

Choose a Larger Deductible

Just as with any other type of insurance, the deductible is the amount you’ll pay before your insurance kicks in when you make a claim. Typically, when you have a lower deductible, your premium will cost more than average. By the same token, you can usually reduce your premium by choosing the highest deductible possible. Just make sure it’s still an amount your business can reasonably afford if you ever need to make a claim. In fact, if you think the odds are high that you’ll make one or more claims in the near future, you need to keep your deductible affordable. But if you—like most companies—are doing everything possible to avoid disasters that might require an insurance claim, asking for a higher deductible makes sense to save money on premiums.

Shop Around

Finally, keep in mind that you don’t have to settle for the first quote you get from propane insurers. You should get quotes on premiums from a few companies, and then compare the coverage and costs before making a decision. As you do this, make sure you’re getting the most for your money, not just choosing the cheapest insurance premium overall. Find out what you’re getting for that premium, such as the amount of coverage and the cost of your deductible. And of course, make sure the insurance company is experienced with propane and petroleum insurance policies—and has plenty of good reviews for you to look at.

Are you ready to save money on the insurance coverage you need for your propane business? Contact us today to get a quote on propane and petroleum insurance! We’d be happy to discuss the coverage options available to you at a reasonable price so you can compare a few quotes before making a decision.

Frank Thompson

Frank B. Thompson is a chartered property and casualty underwriter based in Phoenix. He is the owner of PT Risk Management, an independent insurance company specializing in writing propane and petroleum risk policies throughout the U.S.

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