What comes to mind when you think of propane?
For most people, it summons memories of summer cookouts – grilling burgers, steaks, hot dogs and more. Propane is a commonplace thing for many of us and we tend to simply think of it as “gas.” Propane is a gas (technically a three-carbon alkaline gas) that becomes liquid when compressed, and residential purposes account for more than 90% of its use in the United States.
This is one of the fastest-growing industries in the energy sector and experts see no sign of that trend relenting. Propane is widely understood to be a cleaner, more sustainable method of heating and energy and it’s now being used in new and different ways; for example, can you imagine a propane-powered vehicle in the near future?
As we drive toward a more sustainable future – across all industries – it’s critical for insurance brokers to understand the benefits of adding businesses in those sectors to their client roster. We’ll talk about that, and plenty more, as we dive into the burgeoning propane services industry.
The propane services industry is heating up (literally and figuratively)
This isn’t exactly a new trend, as many people in the United States have become willing (and accustomed to) using propane over the last few years. But what has changed, primarily, is the demand for propane and propane services businesses.
There is a high demand for propane itself but, in the past, the number of providers willing to transport and/or deliver propane hasn’t been aligned with that demand. Because of its cost-effective nature and wide availability around the world, propane is surging and the market reflects its rising stock.
Propane was estimated to be a $92 billion industry in 2023 with a particularly optimistic 10-year outlook; some experts believe propane could be a $156 billion (USD) industry by 2033.
There are a few key reasons why propane is taking off.
Propane is a cleaner energy source
Because of its low carbon content and greater energy efficiency, propane is a cleaner alternative compared to fossil fuels. Many businesses and homes have propane-friendly infrastructure in place which makes it easier to start using while keeping the carbon footprint minimal.
Propane is widely available for a variety of uses
Hot water, heating homes and/or business, cooking…propane is common in just about every setting. Before COVID, the global propane industry produced 10 billion gallons in 2019 but saw a decline during the pandemic. The industry has since rebounded and near the end of 2022, Americans were using approximately 55 million gallons of propane per day.
Propane is more cost efficient than other fuel sources
Propane’s abundant supply and relative ease of production makes it less expensive than electric or fossil fuels as an energy source; as it pertains to heating homes, the U.S. Department of Energy actually recommends propane for heating.
Why propane service businesses need tailored insurance coverage
As of a few years ago, there were an estimated 4,000 propane services companies in the United States – with that number expected to rise in the years ahead as the industry rebounds post-COVID.
Approximately 70% of those businesses are small or family-owned companies, with smaller staff of skilled professional workers. These workers are responsible for industry-specific work like propane procurement, ordering, fulfillment, transportation and installation, making insurance a top priority. Gas insurance for contractors is a key component to any business.
As with any in-demand service, propane businesses need to be supported by reliable and experienced insurance partners, which makes PropanePro the leading option for tailored coverage. PropanePro has worked with countless propane services companies and intimately understands the nature of the work, the risks, and how to mitigate them.
Meeting the moment – and meeting demand
From liability to automobile coverage and workers’ compensation, customized insurance coverage helps propane businesses deliver on consumer demand.
Does the labor market match the increased need for workers?
In many cases, we have seen a disparity between the demand for propane services and the labor required to properly staff companies. Insurance from PropanePro gives businesses and employees (current and prospective) confidence that they’re covered through all aspects of the job.
Evolving technology and use cases for propane clients
Propane is a bustling industry but it’s also evolving. Within a decade it’s possible that propane-powered cars and public transportation will be widely adopted which will help diversify lines of business for propane companies, but also make insuring their risk a bit more complex.
That’s where a trusted provider like PropanePro delivers: by providing tailored insurance options and expert advice that few others can.
Propane clients are a “must” for your insurance portfolio
PropanePro gives your insurance brokerage an opportunity to jump into a fast-rising industry. While other carriers may insure propane services companies, PropanePro has inside-out knowledge and expertise that will prepare clients for any risks or challenges.
A true competitive advantage
Being able to offer PropanePro to clients puts you a step ahead of the competition. You’ll be a leading insurance provider in an industry that is ripe with potential.
PropanePro offers tailored risk management
A variety of insurance coverages are offered under the PropanePro umbrella, each one applicable to regulations, risks or challenges within the propane industry. There’s no filler; only comprehensive insurance and risk management that propane services clients deserve.
The ability to offer niche expertise
PropanePro coverage is solely focused on the propane industry, which means you will be uniquely positioned to advise and help clients. Other insurance carriers simply can’t do that.
Positive impact on client retention
In our experience, word travels fast. Propane service businesses trust PropanePro and they tend to stick around. They also communicate with colleagues and other businesses in the space, giving your brokerage an opportunity to build a robust portfolio of propane companies.
As propane grows, your business grows too
Propane seems destined for a limitless future – and with PropanePro in your arsenal, your insurance business carries similar potential. With promising forecasts for the industry over the next decade, you can leverage PropanePro to help client business (and yours) continue to grow.
PropanePro is an advantage for clients and your insurance business
Propane service companies are no different than any other business: they know insurance is important, but oftentimes it’s not something they prefer to deal with. PropanePro is a comprehensive insurance offering that gives clients the coverages they need while also supporting them with an industry-knowledgeable team of experts.
Unrivaled propane industry expertise
When a client has a question or needs assistance, they will be reaching out to someone who is uniquely qualified to help.
Specialized coverage to fit any and all clients
Propane service companies come in sizes large and small, but that doesn’t change how PropanePro operates. No matter the size of the company or the risks (geographic, logistical or other) the business may face, PropanePro tailors coverage to the client’s needs.
Expansive resources for your clients
With PropanePro, every client is granted access to a library of resources that support the business and its insurance needs. From webinars to tutorials and FAQs, the PropanePro resource library is a one-stop shop.
A dedicated team committed to excellent service
With PropanePro, insurance expertise comes standard. Our team is trained and well-versed in the industry, its standards and regulations – and help is only a phone call or email away.
The comprehensive approach of PropanePro and its industry-leading expertise
NIP Group is a leader in propane industry insurance and our team of experts provides the best insurance for propane businesses (and their employees). NIP Group is a leading gas insurance program for brokers across the United States.
PropanePro is the largest national insurance program for propane services, protecting businesses with the most complete and customized coverage.
Are you ready to help propane businesses level up and thrive in this growing industry? Expand your portfolio with propane and gas businesses and get in touch with the PropanePro team today.
