For propane marketers, insurance is more than just a safeguard—it’s a critical part of keeping your business compliant, safe, and financially secure. However, if you find yourself educating your insurance agent about the intricacies of the propane industry, you may be with the wrong partner. An agent unfamiliar with the unique risks and regulations of propane cannot provide you with the coverage and support your business needs. Here’s why you should work with an insurance agent who understands your industry:
The Agent Must Be Familiar with Propane Laws, Rules, and Regulations
The propane industry is highly regulated, with strict federal and state laws governing safety, transport, and storage. According to the Propane Education & Research Council (PERC), 90% of propane-related accidents involve human error or improper equipment use. An agent unfamiliar with these rules may not understand the full range of compliance requirements or coverage needs. This puts your business at risk of penalties or underinsurance.
An experienced propane insurance agent knows the specific regulations for your industry. They can help ensure your policies align with compliance requirements, keeping you up to date on safety standards and minimizing exposure to liability.
Specialized Carriers Are Essential for Propane Insurance
Not all insurance carriers understand the complexity of propane operations. Only a limited number of carriers offer specialized propane policies, and most require that agents be appointed to sell their coverage. If your agent lacks access to these appointed carriers, they won’t be able to offer you comprehensive or competitively priced coverage.
Without an agent knowledgeable in propane insurance, your business may end up with a policy that doesn’t fully protect against risks unique to propane. The right agent will have established relationships with these specialized carriers and ensure that your business has the best coverage options available.
Propane Associations Play a Key Role in Supporting the Industry
Propane associations, like the National Propane Gas Association (NPGA), play a crucial role in supporting the industry through legislation, education, and safety training. These associations often advocate for laws that benefit propane marketers and provide resources to enhance operational safety.
An agent who is not engaged with or supporting these associations is missing out on key industry insights. These associations fund important legislative initiatives and educational programs that directly impact your business. Choosing an agent who actively supports and participates in propane associations ensures they are informed about industry trends and regulations, and that they are aligned with your interests.
Knowledgeable Agents Can Conduct Effective “Boots on the Ground” Inspections
One of the most important roles an insurance agent plays in the propane industry is conducting on-site inspections. An agent who understands propane will know what to look for during a “boots on the ground” inspection, identifying potential risks before they become costly problems. They can offer practical advice on how to improve safety measures and reduce the likelihood of accidents.
For instance, a qualified agent might recommend specific loss-control measures or improvements to your storage facilities to prevent accidents. By providing this kind of expert guidance, an informed agent can help reduce risk, lower insurance premiums, and ultimately protect your business from claims.
Conclusion
In the propane industry, insurance is a specialized field, and your agent should have a deep understanding of the laws, risks, and safety measures associated with your operations. If you find yourself educating your agent, it’s a sign that they may not have the expertise required to protect your business properly.
The right agent will not only have access to specialized carriers but also be involved in the propane community, supporting associations that advocate for the industry. They’ll conduct informed inspections and provide practical, proactive advice to reduce risk. By working with a knowledgeable agent, you can focus on growing your business while knowing that your insurance needs are in capable hands.