At the time, druggists maintained significant stocks of highly flammable naphtha gas to sell to customers for cleaning clothes. A large number of drug store fires resulted, making it difficult for them to obtain adequate fire insurance coverage. When Murtaugh’s Drug Store in Algona, Iowa, became a victim, Murtaugh, the owner, took the matter into his own hands. He banded together with other druggists in Iowa and Minnesota to form a property insurance company, Druggists Mutual Insurance Company of Algona. But the druggists still needed liability coverage. EMC provided a solution when it made Druggists Mutual an agent to sell EMC liability policies to Druggists’ members. That arrangement continued until 1949 when the law changed, allowing companies to write both property and casualty insurance. Druggists Mutual then wrote its own liability coverage, but EMC continued the relationship by reinsuring Druggists’ liability risks. Thus, EMC entered the field of assumed reinsurance, and the relationship with Druggists Mutual continues today.