Why immediate response matters in propane accident investigations

April 21, 2026 By John McCoy 0 Comments

Since this column focuses on the ins and outs of claims and litigation, I wanted to take this time to address a recurring issue I have seen in claims and lawsuits that have recently come across my desk: What should you do when you become aware of an explosion, accident, claim notice or lawsuit?

For many experienced marketers and industry members, the answer to this query seems straightforward. You should immediately contact your liability insurer and your company lawyer. One or both will then work with you to investigate the matter and take necessary steps to determine the best steps to protect the company.

These actions set in motion a professional review of the claim. Bringing a lawyer onto the team provides protection for any investigation done at their behest in the form of the attorney-client privilege and the attorney work product doctrine.

However, I have seen a slew of claims and lawsuits that have been received by companies that were not addressed in any way. As a result, a scene exam went forward without an investigative team present to protect the propane company.

This can create a variety of problems for the propane company. If no one appears at the joint scene exam, critical scene documentation will be lost. Leak testing of gas lines may not be done properly. Liquid propane samples may not be taken and sent to a qualified lab for testing to determine the odorant level in the gas. Our preferred expert team will not be involved in investigating the site before it is destroyed. This can hamper their ability to testify in a later lawsuit and subsequent trial.

Failure to notify the liability insurer of such notice may also create possible issues with the denial of insurance coverage. There is a general duty-to-cooperate clause in virtually all commercial liability clauses. Sending notice of a claim or lawsuit to the insurer in a timely manner so it may send an investigative team to a joint scene exam can be a basis for a liability insurer to claim its ability to defend has been prejudiced. This prejudice would then form the basis for a legal motion to deny the claim. If that motion were successful, the propane company would be without liability insurance for the loss in question.

Another issue I see is with who is doing the investigation and when. I have received claims where the propane company has already taken statements from its employees involved in the incident before retaining an attorney and without direction from its liability insurer.

This type of investigation is not always protected from discovery should a lawsuit be filed. Some states would consider this investigation to be in the normal course of business and thus discoverable in a lawsuit. All states would classify this type of investigation as protected from discovery if done at the direction of a lawyer retained to represent the propane company. Some states, but not all, also protect from discovery an investigation of the claim or lawsuit done by your liability insurer.

Another issue is hiring the right lawyer. Not all lawyers are able to practice all types of law.

Defending propane companies requires a unique skill set. It encompasses the expertise of complex civil litigation combined with a thorough understanding of the chemistry of the odorant added to propane and how odor fade can occur in a tank and when admitted into the atmosphere.

It requires a deep knowledge of NFPA 54 and 58. It requires a deep knowledge of warnings related to this industry and how it has evolved. It requires knowledge of how a propane system is set up and maintained. The variations are endless. It could be a residential system, commercial system, industrial system or a jurisdictional system, to name but a few.

Experienced propane companies and liability insurers have a shortlist of attorneys on hand who operate in this space. Hiring a novice attorney with little or no experience in this area can harm your ability to defend yourself in these cases.

So, if you are aware of an incident in your area that may involve your company, don’t wait. Let your liability insurer know right away and retain counsel to take point on any investigation you may want to conduct. In the end, this will be to your benefit.

John V. McCoy is with McCoy, Leavitt, Laskey LLC. His firm represents industry members nationally. He can be reached at jmccoy@MLLlaw.com or at 262-522-7007.

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