Contact:         Jim Godfrey                              Casualty & Surety, Inc.             WWW.CSIAPEX.COM
                        jgodfrey@csiapex.com              100 Corporate Parkway
                        205.332.8118 Phone                 Suite 350
                        205.995.0862 Fax                     Birmingham, AL  35242

Energy Programs General Information

Programs Written:         Propane Dealers / Distributors; Fuel Oil (Home Heating) Dealers / Distributors; Petroleum                                      Distributors; Welding Supply Dealers; Natural Gas Utilities.
                                     Trucking – We will consider trucking for hire operations, in the above business segments, if                                      limited to a 300-mile radius of operation and subject to underwriting guidelines.

Lead Time:                   Propane Accounts – 60 days, we pre-loss control all accounts with propane exposure and/or                                     Acetylene Manufacturing.
                                    All Other Accounts – 30 days

Minimum Premium:       $15,000 account (package & auto).

Submission Requirements:
                                    ACORD Applications for each line of business submitted
                                    Fairmont Specialty’s Supplemental Applications
                                    Currently valued Loss History for the expiring and prior 3-4 years
                                    Driver list to include:  Driver Name; State of License; License Number; Date of Birth and Date of                                     Hire

Coverage/Limits           Property:
                                                Special Form
                                                90% Coinsurance;
                                                ACV, RC or AV (with signed statement of values).
                                                Deductible:  $1,000 Minimum

                                    Inland Marine:
                                                EDP; Contractor’s Equipment; Accounts Receivable; and Transportation

                                    Crime:

                                    General Liability:
                                                $1,000,000 each occurrence
                                                $2,000,000 General Aggregate
                                                $2,000,000 Products Aggregate
                                                $1,000,000 Personal / Advertising injury
                                                $   100,000 Fire Damage (any one fire)
                                                $        5,000 Medical Payments (to any one person)
                                                $1,000,000 Employment Benefits Liability (optional)

                                    Automobile Liability & Physical Damage:
                                                $1,000,000 CSL – Liability
                                                UM/UIM (limits to $1,000,000)
                                                PIP
                                                Medical Payments
                                                Physical Damage Coverage

                                    Garage Keepers Legal Liability:
                                                Legal Liability coverage

                                    Umbrella Liability:  (on most programs)
                                                $5,000,000 available in-house.  Higher limits available via the facultative market.

Special Endorsements:

MCS 90 – where required by regulation

Auto Broadened Pollution Coverage (available for most programs)

Energy Special Endorsement (enhanced endorsement) – this endorsement provides additional coverage and/or limits to the Building and Personal Property Coverage form (see form for details).  A partial list of enhancements includes:

• Property in the Open $100,000
• Pollutant Cleanup and Removal Coverage $100,000
• Above Ground Tank Pollution Cleanup and Removal Coverage $100,000
• Newly Acquired or Constructed Property $1,000,000 each building / $500,000 business personal at each building
• Valuable Papers Coverage $25,000
• Accounts Receivable Coverage $25,000
• Tank Leakage Coverage $25,000
• Terminal Access Card Coverage $25,000/50,000
• Gas and Oil Contamination Coverage $25,000/50,000
• Erroneous Delivery of Liquid Products $25,000/50,000
• Property in Transit Coverage $50,000
• Various Crime Coverage/Limits (may not be available for all accounts)
• Computer Equipment Coverage $100,000

Propane Dealers and Distributors

Accounts that have bulk storage plants and/or deliver to and service or install residential, commercial or industrial customers are eligible.  These risks may also have cylinder exchange and/or bottlefill operations.  Incidental sales of appliances and HVAC sales/service are acceptable.  Accounts must have a GAS Check (or similar) program and a written out-of-gas policy and have documented leak testing on a minimum of 20% of their customers (100% of their customers with places of large assembly [schools, churches, etc.]).

We will also provide coverage for Propane Truck Fabricators.  Fabricators generally attach barrels (tanks) to a chassis, to include pumps, valves and hoses.

Combination Propane, Petroleum and/or Fuel Oil Dealers are acceptable.

Commonly used General Liability Class Codes and exposure base:
GL Class Code           Exposure Base           Definition
10042                          Sales                            Appliance Sales – Household type – stove; washer/dryer
13410*                        Gallons                         LP Gas Dealer – retail
13412*                        Gallons                         LP Gas Distributor – Wholesale
18434                          Sales                            Stores NOC – Gas grills; fireplaces; space heaters
                                                                        Heating; Ventilation and Air Conditioning Dealers – LPG including
95648                          Payroll                          installation, service or repair.                                                        
* If risk picks up product from a non-owned location and delivers direct to his customer or if risk brokers product (does not take physical possession / paper transaction only), please advise details and number of gallons.

Fuel Oil (Home Heating) Dealers:

Accounts that have bulk storage plants and/or deliver home heating fuels primarily to residential customers.  Incidental sales of appliances and HVAC sales/service are acceptable.  Combination Fuel Oil, Propane and/or Petroleum accounts are eligible.  Dikes, constructed of impervious materials, are required for all bulk storage facilities.

We are not a market for this product in:  NY; VA or VT

Commonly used General Liability Class Codes and Exposure Base:
GL Class Code           Exposure Base           Definition
10042                          Sales                            Appliance Sales – household type
13204*                        Gallons                         Fuel Oil Dealer – retail
13205*                        Gallons                         Fuel Oil Distributor – wholesale
                                                                        Heating, Ventilation and Air Conditioning Dealers – non LPG – including 95647                           Payroll                         installation, service or repair

* If risk picks up product from a non-owned location and delivers direct to his customer or if risk brokers product (does not take physical possession / paper transaction only), please advise details and number of gallons.

Petroleum Distributors (Marketers):

Accounts that have bulk storage plants and deliver gasoline or diesel (road use) fuels or lubricants to other dealers or distributors.  Ancillary operations are eligible subject to the guidelines in the notes section above. 

We are not a market for this product in:  NJ; NY; VA or VT.

Commonly used General Liability Class Codes and Exposure Base:
GL Class Code           Exposure Base           Definition
10073                          Sales                            Auto repair or service shop
10367                          Sales                            Car wash – full service
13453                          Gallons                         Gasoline Station – full-service
13454                          Gallons                         Gasoline Station – self-service
13455                          Gallons                         Gasoline Station – combined full/self-service
18435                          Sales                            C-Stores
44009                          Rent Receipts               Gas/Oil Supply Station – Lessors Risk Only
53907*                        Gallons                         Gasoline Distributor
61217                          Area                             C-Store – Lessors Risk Only
* If risk picks up product from a non-owned location and delivers direct to his customer or if risk brokers product (does not take physical possession / paper transaction only), please advise details and number of gallons.

Utilities (Natural Gas)
(This Program is Only Available via Willis Programs, Inc.)

Coverage is for both municipally owned and investor owned Natural Gas Utilities.  Members of the American Public Gas Association (APGA) are eligible to participate in a special program.

Commonly used General Liability Class Codes and Exposure Base:
GL Class Code           Exposure Base           Definition
10042                          Sales                            Appliance Stores – Gas Heat; Hot water heaters
91150                          Payroll                          Appliance Installation
95306                          Payroll                          Gas Companies – natural gas – local distribution

Payroll for class 95306 excludes payroll for clerical workers and Managers/Supervisors whose duties are inside the office.

Submissions should include:
            3 years leak recap reports
            3 years DOT 7100F reports
Excluded Operations:  Gas/Oil well operations; Gathering/transmission systems; Processing plants; Underground storage; Pipeline contracting.

Welding Supply Dealers

Coverage is provided for companies that supply various gases and hard-goods to the welding industry.  They may also do a limited amount of repair work on welders and related equipment.  In addition, they may fill bottles and provide transport via their owned vehicles.

Companies that provide medical supplies, other than medical gases, are not eligible.  We will consider gases provided they are less than 50% of the risk’s receipts.

We will consider companies that manufacture acetylene gas as an incidental part (less than 20% of total receipts) of their operations.  Due to the volatility of the acetylene manufacturing process we will require a loss control survey prior to binding.

Notes for All Programs

Personal Auto – We realize some accounts will have personal vehicles titled in the corporate name and it may be necessary to include them in our policy.  In addition to the vehicles being titled in the corporate name, the use of the vehicle must be:  primarily for business use; no youthful operators; no operators with unacceptable MVR’s and no high-performance vehicles.

All risks should have an acceptable written “personal use of autos” policy.

C-Stores – We will consider a limited number of C-Stores provided they are:  incidental to the petroleum marketer operation; do not operate 24/7; do not sell fireworks and are otherwise acceptable.

Car Washes – We will consider a limited number of full service type car washes subject to property damage deductible.  We are not a market for self-service car washes (wand type).

Service Stations – Full-service, self-service or combined full/self service – we will consider a limited number of service stations provided:  they are limited to minor repair of automobiles – tune-up, oil change, etc.  no brake work or major engine/transmission service.

We are not a market for any account that fuels watercraft or aircraft.

Loss Control:

We provide regular on-site loss control engineering to assist our accounts in regulatory compliance; reducing their loss exposures and providing safety action plans.