2025 State of the market: insurance
LP Gas asked insurance providers to offer their perspectives on the market and share their messages for propane marketers.
Crum & Forster
Todd Buechler, AVP Risk Engineering
The company: Since 1923, Crum & Forster has partnered with propane companies, providing specialized insurance solutions and risk management expertise tailored to the unique needs of the industry. The company is an affiliated member of the National Propane Gas Association and participates in many other propane associations throughout the United States. It dedicates its safety team to providing compliance, safety training and personalized programs for propane operations. Its risk consultants are actively engaged at both national and state levels, presenting critical safety topics and conducting in-depth risk analyses for clients.
2025 market update/message to propane marketers: The insurance landscape for propane marketers continues to present significant challenges. The availability of propane insurance options has decreased, and the reinsurance markets continue to tighten, leading to increased scrutiny and higher costs across several key lines of coverage. Key market trends are noticeable with:
- Commercial auto: The market remains under pressure due to a persistent volume of vehicle claims and rising claims costs.
- General liability: This line is increasingly affected by service and driver errors, inadequate documentation and a more litigious environment.
- Property insurance: Ongoing natural disasters, higher labor costs and increased property values are driving up costs and straining capacity.
To help manage insurance costs and maintain insurability, Crum & Forster recommends the following best practices:
- Ensure all propane systems are installed according to current codes and manufacturers’ recommendations.
- Provide regular defensive driving training for all drivers.
- Install dash cameras in all company vehicles to support training efforts and provide accurate records of accident events.
- Maintain meticulous documentation of all safety and operational procedures.
- Continuously educate and train employees on safe work practices and procedures.
- Periodically audit company procedures, documentation and policies to ensure consistency and compliance, and to identify areas for improvement.
- Recognize and reward employees who demonstrate exemplary safety practices and contribute to a culture of risk management.
By remaining vigilant and proactive, propane marketers can better navigate the evolving insurance environment, reduce exposures and help ensure continued access to essential coverage.
Higginbotham Insurance
Rusty Walker, Managing Director
The company: Higginbotham offers specialized programs tailored to the propane industry. The company says decades of experience with retail and wholesale propane marketers have allowed it to create unique relationships with its carrier partners. These relationships allow it to offer specialized industry coverage and risk management needed to ensure the safety of dealers, their employees and their clients.
2025 market update/message to propane marketers: The insurance market for propane dealers has experienced some major adjustments in the past couple of years. We have seen two major insurance company programs shut down their propane insurance programs, and that has left dealers scrambling to get new coverage in place. We have also seen most program writers lower the limits for umbrella insurance or remove umbrella insurance from their program altogether. We have seen standalone umbrella insurance companies stop writing in several states, or they have exited the propane space completely.
All these changes have affected overall pricing that propane dealers must pay for insurance. Most dealers are seeing umbrella pricing increases of 15 percent, if not closer to 25 percent. The rising costs of catastrophic claims and the legal battles that are fought during the claim process have also caused overall insurance costs to increase. Safety, safety and safety are the key factors that can help dealers with overall insurance costs over the long haul. Vehicle cameras, GPS systems, automatic tank gauges, automated gas check documentation and any other items that can provide documentation to your insurance company to help them fight unnecessary claims are highly recommended. Dealers will have to invest in their company’s safety, and this will provide long-term future insurance savings because they have given their insurance company partners information that will help them fight for the propane dealer.
JMcLean Energy Insurance
Ashley Carmon, Lead Insurance Agent
The company: JMcLean Energy Insurance has been dedicated to supporting the propane industry for more than 30 years. Its long-standing relationships with a broad network of carriers allow it to deliver tailored coverage solutions that protect every aspect of propane businesses – from commercial property and auto fleets to pollution liability, management liability, cybersecurity, workers’ compensation and more. Because it specializes in the propane and energy sectors, the company says, it understands the unique challenges that businesses face, allowing it to provide more than just insurance. Its team offers access to valuable resources, training programs and guidance on DOT audits and compliance to help businesses strengthen safety, reduce risk and stay ahead of evolving regulations. By combining deep industry expertise with strong carrier partnerships, the company adds, it creates competitive insurance programs that safeguard businesses today and support long-term success.
2025 market update/message to propane marketers: The propane insurance market remains dynamic, with its fair share of challenges and opportunities. The good news is that carriers are showing greater flexibility, creating more favorable possibilities for propane businesses that operate with strong controls in place. Premiums are still higher than they were a few years back, but companies with clean claims histories, solid safety programs and proactive risk management are seeing more competitive options open up. That said, underwriters haven’t eased up entirely. They continue to place a spotlight on employee training, vehicle safety and regular maintenance. Propane marketers that demonstrate diligence in these areas are in the best position to earn stronger terms at renewal. At the same time, insurers are placing increasing weight on specialized coverages, such as environmental liability, tank and pollution coverage, cyber protection, and management liability as both regulations and exposures continue to evolve. The takeaway for 2025 is staying ahead of industry trends, maintaining compliance and investing in safety can help propane marketers secure better pricing and stronger protection.
National Interstate Insurance
Mike Winchell, Vice President, Specialty Division
The company: Since 2004, National Interstate has specialized in insurance solutions for liquid propane distributors, combining expert risk management with the strength of an “A+” AM Best rating through both guaranteed cost and alternative risk programs, the company notes. It offers a full range of coverages – automobile liability, general liability ($1 million limit), workers’ compensation, auto physical damage, property and inland marine, and excess liability – designed to protect businesses and support successes, even in the toughest moments.
2025 market update/message to propane marketers: After nearly a decade of relative stability, the insurance market for propane marketers has started to shift in recent years. Rising loss costs, especially in auto liability and excess lines, are driving a hardening market, with carriers tightening underwriting standards and increasing rate levels. Catastrophic claims, social inflation and nuclear jury verdicts have made liability coverage more volatile and expensive. Additionally, consolidation within the propane industry has led to fewer insurers supporting the industry, further reducing capacity and increasing pricing pressure. Companies with poor loss histories in difficult jurisdictions are facing the biggest rate challenges, while those investing in safety, training and technology, such as telematics and on-board cameras, are better positioned to manage costs. The market trajectory suggests continued challenges ahead, making proactive risk management essential and leading larger propane marketers to consider alternative risk programs, such as captives.
PT Risk Management
Lauren Abbl, Producer
The company: PT Risk Management is a niche commercial insurance agency that has been focused exclusively on the propane and petroleum industries for more than 30 years. It is licensed in all 50 states and is a member of more than a dozen state and regional propane gas associations, giving its team up-to-date knowledge of what is happening in the propane industry. PT Risk operates with a boots-on-the-ground philosophy and personally visits each location that it insures to make sure nothing is missed on the policy.
2025 market update/message to propane marketers: Insurance carriers continue their stringent documentation and compliance requirements. In some cases, carrier requirements may be over and above what DOT or industry standards dictate. Marketers should consult their insurance agent to make sure they know what the carrier expectations are, as non-compliance could result in cancellation. Umbrella/excess policy premiums continue to rise. Gone are the days when the underlying $1 million policy will cover a major claim. Natural disasters and nuclear jury verdicts are putting more and more claims into the umbrella layers, forcing carriers to raise costs. PT Risk recommends that marketers join the state or regional propane associations in their area. It’s a great way to share best practices, receive training and learn about changes in the industry, all of which can help them mitigate risk.
The Baldwin Group
James Frommert, Vice President
The company: The Baldwin Group’s energy and marine practice brings market expertise and strong insurer relationships to help protect operations, assets and workforces in a complex global environment.
2025 market update/message to propane marketers: The energy and marine industry continues to balance strong global demand with evolving policy and geopolitical risks. While global energy needs remain high, the policy environment under the new administration has shifted momentum back toward traditional energy, with federal actions signaling less favorable conditions for renewables in the near term. Geopolitical tensions add new layers of uncertainty around energy security, supply chains and cyber threats. Against this backdrop, all sectors of the energy and marine market must navigate familiar headwinds like extreme weather events and persistent macroeconomic volatility. The insurance market overall remains softened for the energy and marine industry. Increased capacity, healthy competition and improved pricing for catastrophic loss events have placed downward pressure on premiums across much of the sector.
Featured homepage image: MicroStockHub/ iStock / Getty Images Plus/Getty Images
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