New Forge Energy Captive Gives Propane Dealers With Clean Bobtail Fleets a Renewal Option

The Situation

Tangram says a hardened auto market pools disciplined fuel distributors with high-risk peers. In our reading, that means a clean driving record can buy a propane retailer little at renewal. A new option aims at that gap. Tangram Insurance Services announced Forge Energy in a Sept. 17, 2026 release. It is a member-owned captive built for fuel and propane distributors, covering general liability and commercial auto, including pollution. An owner with a disciplined fleet can now price a captive against the standard market before signing.

The Facts

In general terms, a captive is an insurance program owned by the businesses it covers. Members share in the program's underwriting results, so a good loss year can flow back to them. Tangram's release puts it in its own words: the program "returns underwriting profit to well-run operators". The release also sets a fixed per-claim ceiling on each member's indemnity loss exposure. We leave the dollar figure out under our editorial policy on published prices; your broker can quote it from the release.

Eligibility is broad across downstream energy. The program takes retail and wholesale fuel distributors, heating oil distributors, LPG and CNG distributors, and gasoline and diesel distributors. It has limited appetite for carriers of refined fuel products. Tangram says it writes property, excess liability and guaranteed-cost workers' compensation outside the captive to support members. Coaction Specialty Insurance Group provides the capacity, and the release says Coaction has partnered with Tangram since 2014. Tangram is part of Balavant Insurance Group.

Tangram gives three reasons distributors need a program like this: large mixed fleets, constant pollution exposure, and a hardened auto market that lumps disciplined operators in with high-risk peers. Krissy Kyjovsky, Tangram's executive vice president, said the captive gives "high-quality operators more control and a sustainable path forward." Tracy Bernard, Balavant's chief program officer, said it is "designed to provide greater stability for fuel and propane distributors." Captive Insurance Times independently reported the launch.

Business Impact

Several things a CFO needs are missing from the release. It does not say how many members have joined, what it costs to enter, or what collateral members must post. It does not say whether the program is open in every state or what safety or loss-history record qualifies a dealer. It also does not say how profit is returned or on what schedule. Those answers will decide whether this beats a guaranteed-cost policy for your company.

What this means for your business: 1. Your loss runs become a pricing tool, because a captive rewards the record your drivers have built. 2. Your balance sheet takes on some risk, since member-owned programs share bad years as well as good ones. 3. Your broker has one more market to test, which strengthens your hand even if you stay put.

Key Takeaways

• Treat the captive as a benchmark quote, and make your incumbent carrier compete against it.
• Model a bad year before a good one, so a surprise assessment doesn't hit you after a rollover or a pollution claim.
• Ask for property and workers' comp quotes in the same meeting, so you can compare total program cost against your current package.
• Get written answers on collateral and state availability before you spend management time on an application.

Action Steps

1. 1.Ask your broker whether they have an appointment to place business with Tangram's Forge Energy program.
2. 2.List each bobtail, transport and service vehicle with its driver, so an underwriter can see your fleet mix at a glance.
3. 3.Write down the unanswered questions on entry cost, collateral, state availability and profit-return timing, and send them to your broker.
4. 4.Before the renewal meeting, ask your agent or broker to pull your last five years of auto and liability loss runs. Have them tell you in writing whether your fleet's record would qualify for a captive program like this one, and what a member would owe in a bad year.

Competitive Advantage

Dealers who invest in driver training, telematics and tight hazmat routines have been subsidizing sloppier fleets through pooled auto rates. A captive gives that discipline a way to show up in insurance cost. A retailer who can document a clean record walks into renewal with leverage that a competitor with a spotty history lacks.