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Tangram Unveils Forge Energy: A New Captive Insurance Program for Fuel Distributors

In a recent announcement, Tangram Insurance Services has launched Forge Energy, a groundbreaking captive insurance program aimed specifically at fuel and propane distributors. This initiative is crucial for an industry characterized by complex and diverse risk landscapes, where businesses face unique challenges with commercial insurance.

Navigating Risks in the Fuel Industry

The fuel distribution sector operates under one of the most convoluted risk environments. The presence of large mixed fleets, constant pollution exposure, and a stringent auto market has made it increasingly difficult for distributors to find insurance solutions that effectively cater to their distinct needs. Recognizing these challenges, Forge Energy is designed to offer a tailored alternative risk management solution that combines Tangram's extensive underwriting experience with Coaction's robust capacity developed through a long-standing partnership.

Key Features of Forge Energy

Forge Energy promises to revolutionize the way fuel and propane distributors manage risk.

1. Customized Risk Solutions: Leveraging Tangram's expertise in underwriting fuel and propane risks, the program provides distributors with an opportunity to determine their risk exposure more accurately.
2. Financial Benefits for Members: The program includes unique financial mechanisms that return underwriting profits to well-managed operations, ensuring that disciplined operators are rewarded for their performance.
3. Indemnity Loss Capping: An important feature is the capping of indemnity loss exposure at $350,000 per claim. This move not only protects member operations but also enhances predictability in their financial planning.
4. Transparent Premium Allocation: Unlike typical market options, Forge Energy offers transparent premium allocation, enabling distributors to understand their costs fully and manage their budgets more effectively.

Strategic Goals of Forge Energy

Krissy Kyjovsky, Executive Vice President at Tangram, expressed that Forge Energy embodies a natural evolution of the company’s downstream energy strategy, highlighting:

“We’ve spent years building our expertise in this space, and this captive allows us to better align risk, reward, and long-term performance, giving high-quality operators more control and a sustainable path forward.”

This focus on alignment between risk and reward indicates a shift in how fuel distribution businesses can leverage insurance to foster long-term growth and stability.

Partnership Strength

The strength of Forge Energy is further underscored by its collaboration with Coaction Specialty Insurance Group. Tracy Bernard, Chief Program Officer at Balavant Insurance Group (Tangram's parent company), noted:

“By pairing disciplined underwriting with consistent, high-quality carrier capacity, we’ve developed a unique solution designed to provide greater stability for fuel and propane distributors.”

This partnership not only facilitates crucial risk-sharing but also harnesses specialized expertise in the insurance domain, further solidifying Forge Energy as a trusted solution in the market.

Who Can Join Forge Energy?

Forge Energy is accessible to a range of distributors, including retail and wholesale fuel distributors, heating oil suppliers, liquefied petroleum gas (LPG), and compressed natural gas (CNG) distributors, as well as gasoline and diesel distributors. It also caters to carriers with a limited appetite for refined fuel products, opening the door for more operators to join this innovative insurance program.

Coverage and Support

The coverage provided by Forge Energy is comprehensive, including:

• - General liability and commercial auto insurance with pollution coverage.
• - Additional complimentary coverages such as property, excess liability, and guaranteed cost workers’ compensation outside of the captive insurance program.

This holistic approach ensures that all aspects of a distributor's operations are properly protected, eliminating gaps that can lead to financial instability.

Conclusion

With Forge Energy, Tangram Insurance Services aims to redefine the risk management landscape for fuel and propane distributors. By providing a specialized, member-owned captive insurance solution, the firm not only enhances underwriting profitability but also fosters a community of disciplined operators within the fuel distribution sector. For more details, potential members are encouraged to reach out to Wes Osswald, Global Head of Distribution.

Tangram Insurance Services, with its rich history and commitment to specialized insurance solutions, continues to lead the charge in addressing the unique needs of the energy industry, promising a sustainable future for its clients.

For further inquiries, visit tangramins.com.