Natural gas companies frequently use miles of pipeline to distribute gas to their individual and corporate customers, and they usually monitor each user’s meter. Many companies also perform safety inspection services, billing of customers, and natural gas hookups. An independent insurance agent, familiar with how natural gas dealers and distribution companies are structured and operate, can assist owners in selecting quality commercial insurance suited to their business’s unique coverage needs.
As gas distributors know, the process entails moving small volumes of gas at a low pressure over a short geographic distance to distribute it to individual users. Like companies in the transportation industry, and other similar businesses, natural gas dealers must meet various safety standards that are meant to prevent accidents and injuries to employees or the public. An independent insurance agent, familiar with laws and regulations in place for natural gas distribution companies, will ask various questions to determine the right commercial insurance for that business.
A seasoned independent business insurance agent may ask the owner of a natural gas distribution company about the building in which the business operates, and she might inquire about whether the business has had a loss in the past few years, and if so, the amount of such a loss, or whether the owner or company has ever been subject to a claim. She might also want to find out about the owner’s prior gas dealing experience, along with the work history and experience of any of the business’s employees. She will ask about how long a company has been in operation, and may inquire about annual business income, and any unusual risk exposures that a natural gas distribution entity’s owner can foresee.
A licensed independent insurance agent will probably want to know if a natural gas distribution company has working leak detection equipment at their facilities, and in their transportation vehicles, which can be used to detect leaks in a distribution network. Since natural gas is colorless and has no odor, an independent agent may also ask whether a natural gas dealer adds mercaptan, which smells like rotten eggs, or something similar, to natural gas prior to distributing it to make leak detection easier for individual and business customers.
Besides these questions, to assess a company’s commercial insurance needs, an experienced independent insurance agent will likely ask about the emergency preparedness procedures in place for natural gas distribution business. She may also inquire as to whether a natural gas dealer has technicians on staff 24 hours a day, year round, who are on-call to answer customers’ questions, or respond to concerns about possible natural gas leaks. She might even ask about an organization’s education programs or materials offered or distributed to consumers to inform them about what to do in case of a leak, or emergency involving natural gas, along with whether they have phone numbers that customers, contractors, and construction workers can call to make sure they avoid striking a business’s natural gas line while digging.
Natural Gas distributors often have fleets of commercial vehicles. Drivers motor vehicle record and loss histories will be very important to the pricing as are vehicle ages and values.
In working with a local independent insurance professional to secure commercial insurance for their natural gas distribution or dealing business, owners will find that an independent agent serves as a valuable resource. An independent insurance agent will answer proprietors’ questions about various options for coverage afforded by polices from a number of different insurers, and describe common exclusions and limitations included in those and other commercial insurance policies. With business insurance through an independent insurance agent, natural gas distributors and dealers know that in case of a loss or liability, their company and its finances can remain safeguarded.
For those who run companies in the gas distribution or delivery business, making sure that their enterprise is prepared for daily risks involved in operating large trucks, transporting petroleum, and interacting with customers is important. In the course of delivering gas, employees could be involved in a car accident, or injured while lifting equipment; customers could claim that a distributor failed to deliver at an agreed upon time; or a disaster could result in a petroleum shortage and increased public demand. To safeguard their business against these and other risks, owners of petroleum delivery and distribution companies should make sure that they have sufficient commercial insurance coverage. With the right policy in place, their business can continue to operate, and its property and assets can be protected, in case of a loss or claim.
A local independent commercial insurance agent will serve as a valuable resource for petroleum distributors interested in buying a new business insurance policy, or supplementing existing coverage. An experienced independent agent, knowledgeable about the gas delivery industry and familiar with the concerns of these business owners when it comes to buying coverage, can guide them in selecting the proper policy. He will answer owners’ questions about particular kinds of coverage for a distribution or delivery company, and describe options for policies available from a number of different insurers, along with the provisions, exclusions, and limitations included in each.
A local independent insurance agent can help petroleum delivery business owners choose commercial insurance that is tailored to their organization. He will review whether a business has more than two full-time employees, or more than one owner or director. He might also want to find out whether a company performs any services other than gas delivery, and will ask about how long a distributor has been in operation, and whether it runs out of a single location, or has multiple work sites.
In the course of working with a licensed independent insurance agent, business owners can expect that the agent may request to meet at their business premises. He might ask to tour the facilities to assess the condition of the building, whether it is a historic or one-of-a-kind property, and to determine whether plumbing, heating, and ventilation systems on site have been recently serviced or updated. He may also want to see any machinery or equipment used by employees, and will want to know if the organization’s building is located in a high crime area.
A seasoned independent insurance agent may inquire about a petroleum distributor’s past claims, and if a business has had a loss in excess of $10,000 in the past three years. He will want to know about an organization’s annual business income and expenses, along with whether its building is located adjacent to any high risk exposures, like an abandoned warehouse. He may also want to know about the kinds of vehicles used by a distributor for petroleum delivery, and will probably ask about workers’ prior gas distribution experience. He will also want to know whether trucks travel on interstate highways, require oversize or heavy load permits, or have an individual value of $125,000 or more, and he will probably ask about driver training practices, selection and hiring procedures employed by a gas distribution company, and whether workers are hired on an employee, or contractor basis.
Distributors with fleets will need to disclose driver’s license numbers and vehicle values as well as loss and incident histories.
By connecting with a local independent insurance agent who knows about the significant factors to consider in choosing commercial insurance for a petroleum delivery business, owners of these companies can receive advice on selecting the proper policy to keep their organization covered. They can discuss various kinds of commercial insurance coverage for their business, including building property coverage, auto insurance, and workers’ compensation coverage, and learn about premiums and endorsements.
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