TLTR: Businesses think that a general liability insurance policy can protect them against almost anything. However, without a customized policy, there are multiple perils your business is exposed to. In this article, we’ll tell you about the many advantages of opting for specially-designed gas station insurance.
Gas stations and convenience stores are among the most common businesses in the U.S. According to IBIS World, the country is currently home to 65,517 gas stations with attached convenience stores. Whether customers want to refuel their vehicles or shop for snacks or magazines, gas stations with convenience stores are always their number one stop on the road.
If you run a gas station, you can select various coverages and customize your insurance plan to fit your needs. Proper coverage will secure your investments from possible risks that can ruin your business.
Do You Need Gas Station Insurance?
Gas stations are hotspots for accidents and injuries if the chemicals involved are not handled carefully. They not only run a high-risk of fire, but they’re also exposed to criminal risks such as arson, shoplifting, and robbery. Hardware malfunctions can also halt your business operations and affect your daily income.
Most gas stations today have convenience stores on their premises. Running a convenience store exposes you to risks like customer injuries, theft, and vandalism. Per the FBI’s 2019 Crime in the United States report, out of the total robberies occurring in America, 3% occurred in gas stations, and 6.6% occurred at convenience stores.
What Does Your Insurance Policy Protect You From?
A gas station is a hornet’s nest of third-party liability, chemical hazards, and transportation risks. Your finances are tied to the success of your gas station and convenience store. If something goes wrong, you may be heading towards bankruptcy. Here are a few common risks that are covered by gas station insurance:
- Theft and vandalism
- Fuel tank contamination
- Damage to property
- Customer injury on the premises
- Contamination of perishable goods
Popular Insurance Policies with Gas Station Insurance
Your business is unique and needs a combination of coverages to tackle all risks. Gas station and convenience store insurance can be presented to you in many forms. Here are a few policies to consider:
Workers Compensation Insurance
Suppose your employee is operating the counter at your gas station. Suddenly, a thief breaks in and robs your store, injuring your employee in the process. In such a scenario, you would not only shoulder the losses from the theft but you’d also have to pay for your employee’s treatment as well as their lost wages.
Employees at gas stations and convenience stores are vulnerable to workplace violence and harassment. While working in a gas station, an employee faces the risk of:
- Back and neck injuries
- Thermal burns
- Chemical burns
- Broken bones
- Head wounds
- Concussions and other traumatic brain injuries
- Soft-tissue sprains, strains, bruises, and scrapes
Workers compensation insurance is essential coverage that you need for your business. It provides necessary coverage for your employees’ illnesses, injuries, or even death resulting from any workplace-related mishap.
If your gas station is situated outside Texas, workers compensation policy is not optional. Moreover, failure to provide proper workers compensation coverage to your employees can lead to severe penalties.
General Liability Insurance
To keep your business safe from “general” claims involving bodily injuries and damage to property, you need general liability insurance. Third parties may pinpoint your business and premises as legally liable for their losses. In this case, your general liability insurance will cover you.
For instance, it’s wintertime and while your customer is filling up their car, they slip on some ice and fracture their leg. In this scenario, general liability insurance covers the customer’s injury.
Law.com reports that in 2015, Gloria Cevallos sued a Lake Worth, Florida, speedway station over the pump’s slippery surface and was awarded $266,854 by the jury.
- Accidents can occur in the workplace at any time, resulting in a customer injury. In such situations, your general liability insurance will help.
- General liability coverage protects you from claims occurring on your business’s physical premises, which include bodily injury, property damage, medical payments, legal defense and judgement, and personal and advertising injury.
Business Interruption Insurance
It is possible that your gas station may have to shut down due to disasters or accidents within the workplace. Your income stream might stop flowing, but the bills won’t stop coming in. Thanks to business interruption insurance, your expenses will still be covered even if your gas station is temporarily shut down.
Commercial Property Insurance
Gas stations are susceptible to chemical and fire hazards. According to the National Fire Protection Association, from 2004 to 2008 there was an estimated average of 5,020 gas station fires throughout the nation, resulting in $20 million in direct property damage. Moreover, unlike a general store, gas stations require equipment and build-outs that are more appropriate for handling a gas pump. Such equipment is expensive and can cause massive losses in cases of damage.
That is why commercial property insurance is vital for your business as it protects your commercial property from perils such as fire, theft, and natural disaster.
Commercial property insurance provides coverage for commercial properties such as:
- The building that houses your gas station
- All workplace equipment
- Accounting records and essential company documents
- Fences and landscaping
- Signs and satellite dishes
Business Owners Policy
If you are looking for a basic insurance policy as a business owner, a business owners policy (BOP) is a cost-effective option.
A BOP comprises commercial property insurance, general liability insurance, and business interruption insurance. Therefore, it is a more affordable choice for gas station owners. A BOP generally provides coverage for:
- Equipment breakdowns
- Building and contents
- Business income and extra expense
Commercial Auto Insurance
If your business uses company vehicle(s) to run work-related errands, you are exposing your business to risks like accidents, vandalism, or property damage. Commercial auto insurance can protect your business from such risks and is mandatory in all states except New Hampshire and Virginia. Commercial auto insurance covers:
- Bodily injury
- Property damage
- Combined single limit
- Medical Payments
- Uninsured motorist coverage
- Collision coverage
Cyber Liability Insurance
More and more customers are moving away from cash payments due to the convenience that credit and debit cards offer. Card payments equate to the storage of highly sensitive personal data, which may be a liability to you if not handled well. Furthermore, with the personal information that your customers will pass on to your business, you will always face a threat of a data breach lawsuit. It never hurts to be prepared when dealing with your company’s and customers’ digital information. Cyber liability insurance will protect you from any claims arising from:
- Breach of data
- Customer notification expense
- Fraud monitoring costs
- You can also add cyber liability policy as an endorsement to your BOP.
Liquor Liability Insurance
Dram shop laws hold businesses liable for serving or selling alcohol to patrons who then cause third-party injury or property damage. Depending on where dram shop laws are operational, liquor liability laws vary from state to state. It’s a general rule of thumb that you’ll need liquor liability coverage if your gas station sells or serves alcohol. Liquor liability insurance provides coverage for incidents involving alcohol including:
- Third-party bodily injury
- Third-party property damage
- Legal costs
- Additional claims, such as assault and battery
Commercial Umbrella Insurance
Running a gas station means that you could potentially be exposed to substantial losses. A gasoline-induced accident can lead to damages and injuries that may prove to be very expensive. However, there may be situations where your standard gas station insurance policy will not cover the total expense.
That’s where a commercial umbrella insurance comes in handy.
Commercial umbrella insurance is a form of liability insurance covering your business when your auto liability, general liability, or other coverages are insufficient to pay for damages. It protects your business when the coverage expense exceeds your policy limit. Furthermore, it also helps shield your business from the financial risk of a massive lawsuit.
If you house a repair shop or offer towing services, then you will absolutely require this coverage. When your customers’ vehicles are stored away in your commercial property, it’s your responsibility to protect them. If, by any chance, their property is stolen or damaged, then your gas station insurance will pay for the damages.
How Much is the Premium for Gas Station Insurance?
Your insurance premium depends on various factors, such as:
Number of employees
It’s pretty simple—the higher the number of employees, the higher your workers compensation insurance rates are. Also look into employee practices liability insurance as well as general liability insurance.
In California, where forest fires are common and seasonal, you’ll be paying a higher price for coverage. Talk to an insurance agent before you settle for a policy as you could be overpaying on insurance.
Do you only own a gas station or is a convenience store attached? Do you also offer towing services? Your gas station insurance depends on what amenities and services you offer and whether you want to cover them as well. Usually, if you bundle policies, you get a lower rate. Talk to an agent before purchasing your policy.
According to General Liability Insure, a gas station can pay about $2,000,000 for general liability insurance. Monthly rates will range from $97 to $139 for a standard policy.
Why Using a Business Insurance Agent Beneficial?
When it comes to protecting your business, there are many factors you should consider. One of the most important decisions you’ll need to make is whether to use business insurance agents or you should purchase an insurance policy on your own. While both options have their pros and cons, there are several reasons why using a business insurance agent beneficial.
Best insurance agents near me will provide valuable guidance when it comes to deciding which type of insurance coverage you need. With their expertise and understanding of the various insurance policies available, they’ll be able to recommend the best coverage for your specific business needs.
Choose From the Best
An insurance agent will provide access to a wide range of business insurance policies. From property and liability coverage to specialized coverage such as business interruption insurance, an insurance agent will help you find the right policies to cover your company’s unique needs.
Another benefit of using a business insurance agent is the ability to customize your policy. An insurance agent will work with you to find the appropriate coverage at an affordable price. This will help ensure you’re not paying too much for coverage you don’t need, while also protecting you.
Peace of Mind
Insurance agent near me will provide you with peace of mind. Knowing that you’re working with a professional who will help you make the best decisions for your company will be a great source of comfort. With their help, you will make the decisions and taking the necessary steps for your business.
How Much Does an Average Gas Station Insurance Cost?
Gas station insurance cost in the United States depend on many factors, including your gas station’s location, the size of your business, and the type of insurance you need. Gas station owners should typically expect to pay thousands of dollars yearly for insurance coverage. The insurance cost is generally higher in urban areas than in rural areas.
The most common types of gas station insurance are liability, property, and workers’ compensation. We recommend contacting an insurance agent and getting more accurate and detailed information based on your location and the nature of your business. However, Insuranks estimates, the average cost of gas station insurance is $100 per month and $1,200 per year for liability insurance with $1 million in coverage.
Please also consider that this is an approximation and the gas station insurance cost will vary greatly depending on the above factors. For a more accurate quote, we recommend contacting our insurance agents for an estimation of gas insurance costs.
American Petroleum Institute claims that more than 60% of gas stations and convenience stores are either owned individually or by a family that owns a single store. If these stores accidentally catch fire, or become victims of robbery, there’s no franchise looking after their renovation. As a sole owner, it’s your duty to take care of your bread and butter.
Using a business insurance agent is a smart decision for any business owner. Not only will they provide valuable guidance and access to a wider range of policies, but they will also help you customize your policy and make sure you’re getting the best coverage possible. With the help of best commercial insurance agents near me, you will protect your business is properly.
You could be saving yourself the trouble of having to empty your pockets every time something goes awry in your store. If you’re looking for an expert to guide you through the paperwork, Agency Height can help. Our insurance directory can help you find an agent.
Frequently Asked Questions
Does gas station insurance cover damaged goods on your shelves?
If you’re worried whether your gas station insurance coverage extends to your inventory and stored goods, rest assured. Commercial property insurance policy is designed to keep your perishable property as well as inventory safe.
How does a business insurance agent help you?
The benefit of using a business insurance agent is that they will provide you with personalized advice and support throughout the process.
Is gas station insurance mandatory?
In the U.S., it’s not mandatory to purchase insurance for your business. However, you should be aware of the liabilities when you own gas station.
For example, a customer accidentally falls while on your gas station property and claims that your slippery floors were to blame. If you’re found to be at fault, you’ll be paying for this customer’s medical bills. If they file a lawsuit against you, that’s more money out of your pocket. With gas station insurance, all of these unwanted expenses are covered.
What is the cost of gas station insurance?
On average, a gas station owner can expect to pay $100 per month, or $1,200 per year for liability gas station insurance cost of $1 million.
January 26th, 2023 · 7 mins read
- Do You Need Gas Station Insurance?
- What Does Your Insurance Policy Protect You From?
- Popular Insurance Policies with Gas Station Insurance
- How Much is the Premium for Gas Station Insurance?
- Why Using a Business Insurance Agent Beneficial?
- How Much Does an Average Gas Station Insurance Cost?
- Frequently Asked Questions
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