State of the insurance market

September 29, 2023 By    

LP Gas asked insurance providers to offer their perspectives on the market and to share their message for propane marketers.


Tom Mullaney, risk management director

Tom Mullaney


The company: Aegis General Energy provides auto, liability, property and specialty coverages for propane companies, ranging from startups to small family operations to large multi-state conglomerates operating in the retail, wholesale and transportation segments of the industry. Our staff of industry experts have been together for decades, ensuring that we have the most qualified and knowledgeable underwriters serving our industry partners.

Market update/message to marketers: We have been committed to providing the best insurance and risk management services tailored to the unique needs of our propane industry customers. For three decades, we have been working to protect your business, assets and operations from unforeseen risks and challenges. Your confidence in our expertise and dedication has motivated us to enhance our services to exceed your expectations. Throughout our journey, we have witnessed the propane industry evolve and face various transformations. From technological advancements to regulatory changes, we have remained at the forefront of industry knowledge, ensuring that our insurance adapts to the ever-evolving landscape.


Todd Buechler, AVP risk engineering

Todd Buechler


The company: Crum and Forster has been serving the propane industry for 100 years. We have a longstanding affinity relationship with the National Propane Gas Association (NPGA), are members of several state propane associations and active in Propane Education & Research Council and NPGA committees.

Market update/message to marketers: The insurance sector is grappling with disruptions from various national weather events, poor auto results and escalating claims costs. Key factors pressuring the industry include rising costs for buildings, vehicles, labor, medical care and litigation. This has caused some companies to rethink their propane insurance services. Notably, it’s not the number of claims that’s concerning but their increasing cost. For those in the propane industry, insurers emphasize several critical practices:

1. Rigorous employee/driver hiring and ongoing training based on job duties.
2. Implementing and managing telematics and cameras.
3. Complete and accurate documentation.
4. Performing and documenting leak checks when required.
5. Adhering to tank manufacturer installation recommendations and safety protocols.
6. Regular property and vehicle maintenance and safety checks.
7. Annual legal review of lease agreements by experts in propane operations.
8. Communicating and documenting safety protocols and information to customers.

A comprehensive safety and training program is paramount for risk management and limiting potential liabilities.


Nathan Weisenburger, principal

Nathan Weisenburger


The company: We are a regional insurance brokerage that specializes in energy. We have 50 employees and are licensed in all 50 states. We are a 108-year-old family-operated business, and we want to work with companies that share our perspective of treating our employees and customers as if they were family as well.

Market update/message to marketers: The LPG insurance market has seen some significant movement in not just carriers trying to get more rate due to their poor combined loss ratios, but from carriers completely removing themselves from the marketplace. What does it mean when a giant company completely exits the propane insurance space and wants to cancel and non-renew its LPG accounts? What does this mean for other carriers when it comes to their appetite, rate, profitability, as well as their ability to be aggressive during this hard market? If it is not enough that business owners have fewer carrier options, they are also dealing with property renewals that are coming in significantly higher each year due to the cost of materials and issues with labor. Specific to property, every insurance carrier we have is asking for rate from our clients with and without claims.


Jamerson-McLean Corp. staff

Jamerson-McLean Corp. staff

The company: Our office is licensed in 33 states and solely provides offerings to the LP gas industry. We’ve specialized in this field for over 30 years.

Market update/message to marketers: With growing restrictions in the insurance industry for LP gas marketers, it’s very important to find an agent that knows the industry inside and out. Properly representing the marketer to the carrier is as important as ensuring the coverages are adequate for any potential loss. In the unfortunate instance there is a claim, the last thing you want to have to worry about is whether you have the right (or enough) coverage.



Lauren Abbl, producer

Lauren Abbl


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. We are licensed in all 50 states and members of more than a dozen state and regional propane gas associations, giving our 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 we insure to make sure there is nothing missed on the policy.

Market update/message to marketers: Inflation, rising claims costs due to natural disasters, and nuclear jury verdicts are just a few of the reasons insurance premiums are on the rise. Collectively as an industry, propane marketers need to become more sophisticated in their documentation across the board. A properly documented leak check or cylinder refill could mean the difference between a large judgement against the propane company and avoiding a potentially astronomical payout. Work hand in hand with your insurance professional to make sure tank lease agreements or dispensers at non-owned locations clearly spell out liability. It’s vital that your agent fully understands the unique insurance needs of the propane industry.


Josh Witt, president

Josh Witt


The company: We are a predominantly commercial insurance agency located in Knoxville, Tennessee. We insure propane dealers/marketers and bottle fillers as well as propane hauling companies in 43 states.

Market update/message to marketers: The propane insurance market is undergoing a bit of a change, as one of the larger suppliers of propane insurance just pulled out of the market. This could create coverage/price volatility for insureds who previously had this company as their main propane insurance provider. However, the rest of the market remains stable, especially for accounts generating $25,000 and above in premium. As the insurance market as a whole tightens up, we recommend all clients continue to focus on implementing sound risk management practices, such as return-to-work programs for work comp, vehicle maintenance programs, lock-out/tag-out programs, etc.

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