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Risk Exposure Concerns for Propane Retailers

Tangram Insurance Services

Propane retailers take on difficult and potentially dangerous work that requires specialized training, expertise, and risk management. Any type of propane tank gas leak can result in a serious fire or explosion. Accordingly, safety is at the forefront of all propane retailers’ policymaking and operational procedures.

Accident Prevention

Effective accident prevention training, continuous procedural review, and comprehensive insurance coverage are essential safeguards for a propane company’s operations. While frequent causes of leaks include mishandling and improper handling, accidents can happen suddenly despite and careful oversight.

Liability Concerns

As observed by Tangram Insurance Services, a retailer can ultimately be found liable for accidents related to product defects that originated at the manufacturer level rather than the distributor level. It can be difficult to determine exactly the cause of an accident in which the physical evidence is seriously damaged or destroyed.

Ultrahazardous Activities and the Law

Because of the potential propane retailer risk inherent to handling explosive materials, many jurisdictions have deemed selling propane to be an ultrahazardous activity. Legally, an ultrahazardous activity is one that requires companies who engage in it to adhere to an enhanced duty of care. Ultimately, it’s critically important to work with an insurance team that is familiar with handling claims of this nature and experienced in helping companies to minimize their risk of exposure to accidents or loss.

prevention training procedural review retailer risk risk management Tangram Insurance Services
April 19, 2020 William

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