Gas Station Insurance

Gas Station Insurance

Unpredictability is a derivative of any business. Any insurance provides an assurance covering the essential aspects of a business. For example, gas stations are a necessary service provider and witness ample footfall daily. This makes it more susceptible to added risk factors and the inherent risks of owning a gas station.

Here, we focus on why you need gas station insurance, the cost, the different insurance coverage for gas stations, and the factors that affect the coverage.

Why do gas stations need insurance?

Most gas stations do not function alone. Adjacent to every gas station is a store that sells the essentials or a restroom service. Hence, a gas station is an amalgam of different businesses, so it is necessary to customize your gas station insurance. Moreover, the probability of hazards, injuries, and other security breaches is why your gas station business mandatorily requires insurance.

Why is gas station insurance important?

• Gas stations are a hot spot for theft and vandalism.
• The probability of accidents and injuries that can occur in a gas station.
• High exposure to shoplifting and robbery.
• Malfunctions that can tamper with daily functioning.
• Extensive use of credit cards and the probability of cyber security breaches.
• Chances of chemical leakage causing pollution.
• Loss of profit and repair costs.
• Susceptibility of employees to injuries

Insurance Coverages for Gas Stations and Fuel Distributors

It is important to take care of your business not just in terms of profit but also in terms of the risks it is susceptible to. For example, if you are a fuel distributor, own a gas station, or run a convenience store in a gas station, then you need to know about the insurance coverage you require to run your business hassle-free.

General Liability Insurance

Considering the customer injuries and property damage in any business, general liability insurance covers the expenses related to the customers.

General liability insurance for garages can assist with the payment of a customer's medical expenditures, the cost of restoring a damaged vehicle, and the legal fees associated with a related lawsuit.

Property Insurance

Also known as commercial property insurance coverage, this will provide coverage to the commercial property on the premises of your business. This will include the buildings, pumps, or a convenience store that belongs to the premise.

Having property insurance will have you covered in the repair and replacement of the business property, cargo, furniture, and others that complete the infrastructure of your business, which may also occur due to natural disasters.

However, damages occurring due to earthquakes, floods, or hurricanes will be covered only if you add them to the policy based on the frequency of such incidents.

Commercial Auto & Fleet Insurance

If your business owns a vehicle, it is mandatory in all states except New Hampshire and Virginia to own a commercial auto insurance policy. This coverage is intended to protect vehicles utilized for commercial purposes. In addition, it will cover your vehicles against vandalism, accidents, and property damage.

Pollution Liability Coverage

Owning a gas station involves the risk of leakage or other similar damages. Pollution liability coverage insures the damages that occur over time in case of leakage or contamination.

Also known as environmental insurance, this helps mitigate the risks associated with a gas station business you own. This will include bodily injury coverage, cleanup costs, and property damage coverage.

Crime Coverage

This supplemental insurance policy can protect you against the financial losses that can occur due to thefts.

Cyber Liability Insurance

The increased digital payments while paying for gas make every gas station susceptible to cyber fraud. If you opt for this coverage, the expenses occurring after a cyber fraud will be taken care of.

Business Interruption Insurance

This coverage also favors any unplanned shutdowns at a gas station, leading to the loss of income. However, with business interruption coverage in place, you will have your income compensated for the days your business has been shut down.

However, it covers only the loss of income and not any damages caused to the premise or property. It also doesn't reimburse if the closure was due to a pandemic.

Umbrella Liability Insurance

An umbrella insurance coverage works against unexpected claims due to rare but massive accidents. During such accidents, if you are covered with umbrella liability insurance, you can avoid sudden out-of-pocket expenses that you cannot cover with your regular coverage.

Workers Compensation Insurance

Workers' compensation insurance covers medical expenses and lost pay for accidents and illnesses experienced on the job. An employer's liability insurance is also a part of worker's compensation insurance. This will cover the court expenses, attorney's fees, and even settlements if the employee sues the employer over an injury.

Underground Storage Tank Coverage

An underground storage tank is an integral part of running a gas station. The Storage Tank Liability Insurance policy covers third-party physical injury and property damage caused by pollution conditions emerging from underground and aboveground storage tanks in a gas station.

Business Owners' Policy

Business Owner's Policy is an affordable coverage option for gas station owners. It is a coverage option that offers commercial property insurance, general liability insurance, and business interruption insurance. This will cover the equipment and its repair, the building and the property, and business income.

Garage Keeper's Insurance

You will need this coverage if you run a repair or towing service. It offers liability protection to the customer's car is damaged while in the garage's possession.

Liquor Liability Insurance

According to the Dram Shop Laws, businesses will be held responsible for damage to the customers or their property. Though the law varies according to the state you belong to, if your gas station sells or serves alcohol, you need liquor liability coverage.

It will cover legal costs, third-party bodily injury, and property damage.

How Much Does Gas Station Insurance Cost?

The average insurance cost for a gas station business can range between $750 and $1300 per year.

Considering the rates of two providers that offer gas station insurance, we observe that the monthly rate ranges between $68 and $91. The average annual insurance rate offered by Cover Wallet and Allstate are $756 and $1026, respectively.

Factors Affecting Gas Station Insurance Premium

The insurance premium rates you pay for your gas station depend on several factors. Insurance companies calculate the premium rates for your gas station insurance based on these factors.

Safety History of your Gas Station

If your gas station has a spotless safety record, then the premium rates will stick to the average rates in trend. However, any history of accidents or injured employees can increase your insurance premium rates.

Size of your Gas Station

A larger gas station may anticipate more customers in a day, which raises the likelihood of your customers being harmed or having their property damaged at the station.

Type of Coverage

Different coverage options are available based on the needs of a gas station. Insurance premiums can increase when you opt for more types of coverage rather than sticking to general liability coverage.

Time of Operation

If you own a gas station that functions for 24 hours, then the risks involved are higher, thereby increasing the insurance rates.

Convenience Store Insurance

Shoplifting and vandalism are the most probable risks associated with a convenience store. Therefore, one needs to insure the store against these. However, the associated risks will be higher if you run a convenience store in a gas station.

A gas station convenience store will face the same risks as a gas station. The insurance rates can be as low as $30 per month but will depend on several factors like the age of your building, inventory, the number of workers, equipment used, and finances. In addition, the coverage you opt for is a major factor in moderating your insurance rates.

Thus, insurance for a gas station convenience store tends to be higher than insurance for regular convenience stores.

Compare Insurance Quotes for Gas Stations

It is advisable to do your research before zeroing in on your insurance provider. Doing your research by analyzing the quotes after obtaining them online will reward you with better coverage at a lower price.

Way.com gives you a head start by analyzing the best insurance companies to insure your gas station or a gas station convenience store. These include nationally recognized providers based on criteria that will influence your insurance coverage experience, financial strength, customer service, protection, and price. On our platform, you can quickly and easily compare offers from more than 150 insurance companies to find the best deal for your gas station.