Dear valued customer,

This newsletter is for our insureds who offer, or are considering to offer filling of propane bottles.

This exposure is becoming increasingly more difficult to insure because of its potentially large claim exposure. Some insurance companies are starting to restrict this coverage and others have stopped quoting locations that have propane filling altogether.

One of the big insurance companies we represent just had a very large propane loss.

Details of the claim are as follows:

•    The service station employee filled 3 propane bottles that were expired and that had not been “requalified”
•    One tank exploded at the customer’s house.
•    2 individuals were severely burned and one of them had since passed away - a very unfortunate situation.
•    The service station is now being sued for over $8,000,000 and unfortunately, they appear to only have a $1,000,000 liability policy.

Also, our agency too, has recently had a different large propane claim similar to the one discussed above. In that claim, again the insured filled a bottle that was over 10 years old and, although that bottle was requalified, the insurance company still paid $400,000.

Something to think about…Unless propane filling generates a substantial source of income, you may want to reconsider offering that service.

However, if you continue to do propane fill,…  It is important to make sure that the employees that is filling these bottles are properly trained on what bottles they fill and that you are up to date on all regulations. DO NOT let untrained employees fill propane bottles.

The propane supplier you are working with should be able to provide such training on a regular basis.

To our valued customers!

A very happy New Year 2019.  Our first News-Email subject will focus on Propane Exposure, Filling Process and Leaks.

In the last 35 years, RKM has seen many Propane claims ranging from the normal to the severe; Whether it's a propane fueled vehicle explosion, or a recently filled propane tank exploding at home. We’ve seen it all, including a total loss of a Motor Home during the filling process due to a unique stove modifications which resulted in a propane leak and explosion.

As a result of these claims, every so often insurance companies become more strict in their underwriting rules and expectations.

For your information and convenience, we have listed below, some important safety tips and what to dos’ in the filling process and/or leaks.  

Filling Process 
Only trained and qualified personnel should be allowed to fill propane containers.  Gas companies often offer initial and annual training to customers who plan to fill propane on site.  It is very important to complete the training and maintain the documentation for future reference.  In addition, make sure your employees are comfortable and confident on this job!
Safety tips on the filling process:

•    As a general rule, Propane tanks should be within 100 feet of delivery vehicle access.
•    Always wear approved gloves—gas under pressure can cause serious burns!
•    Remove all new containers and used containers that have been left open.
•    Always follow proper filling procedures as directed by a qualified trainer.
•    NEVER overfill a container. Overfilled containers may release product and are ILLEGAL!
•    Adjust the scale beam slide for proper size and weight of container.
•    Stop filling immediately when the scale beam rises and/or liquid spews from the fixed liquid level gauge.
•    Additional training is required for filling permanently mounted containers (for example, truck mounted). Be sure to shut off the engine and other potential ignition sources.
•    Always know the location of the emergency shut off valve and/or disconnect in the event of a leak or emergency.

What to do if there is a leak:

•    NO FLAMES OR SPARKS. Immediately put out all smoking materials and other open flames. Do not operate lights, appliances, telephones, or cell phones. Flames or sparks from these sources can trigger an explosion or a fire.
•    LEAVE THE AREA IMMEDIATELY. Get everyone out of the building or area where you suspect gas is leaking.
•    SHUT OFF THE GAS. Turn off the main gas supply valve on your propane tank, if it is safe to do so. To close the valve, turn it to the right (clockwise).
•    REPORT THE LEAK. From a building away from the gas leak, call your propane retailer right away. If you can’t reach your propane retailer, call 911 or your local fire department.
•    DO NOT RETURN TO THE BUILDING OR AREA until your propane retailer determines that it is safe to do so.
•    GET YOUR SYSTEM CHECKED. Before you attempt to use any of your propane appliances, your propane retailer or a qualified service technician must check your entire system to ensure that it is leak-free.

Thank you,