Gas Station Insurance: Fuel Your Business
Gas stations and convenience stores are a common business in the U.S. According to IBIS World, there are almost 63,000 gas stations with attached convenience stores. As a result, gas station insurance could prove an essential investment as an owner. If you run a gas station, then 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.
In this blog
Do You Need Gas Station Insurance?
Gas stations are hotspots for accidents and injuries. They not only have a high-risk of fire due to the flammable nature of gas, but they’re also exposed to criminal risks such as arson, shoplifting, and robbery. Similarly, hardware malfunctions can also halt your business operations and affect your daily income. Most gas stations also work with convenience stores on their premises. Running a convenience store exposes you to risks like customer injuries, theft, vandalism, and so on. The FBI website’s 2019 U.S crime report states that 3% of total U.S robberies occurred in gas stations, and 6.6% occurred at convenience stores.
What Does Your Insurance Policy Protect You From?
- Theft and vandalism
- Fuel tank contamination
- Damage to property
- Customer injury on the premises
- Contamination coverage for perishable goods
Popular Policies That Include Gas Station Insurance
Your business is unique and needs a combination of coverages to tackle all risks and as a result gas station and convenience store insurance can be presented to you in many forms. Here are a few policies to consider:
Workers Compensation Insurance
For an example, your employee is operating the counter at your gas station. Suddenly, a thief breaks in and robs your store, therefore injuring your employee in the process. In this case, you will bear losses from the theft, as a result you will also have to pay for your employee’s treatment as well as their lost wages.
According to an ILO report, employees at gas stations and convenience stores are among the most 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 equally essential coverage that you need for your business. Under gas station insurance, it provides necessary coverages for your employee’s illness, injuries, or even death resulting from any workplace-related mishap.
If your gas station runs outside Texas, then 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 businesses safe from “general” claims involving bodily injuries and damages to property, you need general liability insurance. Third parties may pinpoint your business and premises as legally liable for their losses. In this case, gas station insurance will cover you.
For instance, it’s wintertime and while your customer is pumping fuel in their car, they slip on some ice and fracture their leg. In this scenario, general liability insurance covers the customer’s injury.
- 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 and this includes 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 under gas station insurance even if your gas station is temporarily shut down.
Commercial Property Insurance
According to the National Fire Protection Association, fire departments in the United States responded to an average of 4,150 fires per year. Gas stations are at risk of chemical and fire hazards, moreover, this can result in millions of 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 further cause massive losses in cases of damage without gas station insurance.
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 under gas station 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, then a business owners policy is a cost-effective option.
A BOP comprises commercial property insurance, general liability insurance, and business interruption insurance. 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, then you are exposing your business to risks like accidents, vandalism, or property damage. However, commercial auto insurance can protect your business from such risks. Furthermore, it 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
Commercial 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. Commercial cyber liability coverage will protect you from any claims arising from:
- Breach of data
- Customer notification expense
- Fraud monitoring costs
You may also add a cyber liability policy and it is 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. Additionally, you’ll need liquor liability coverage if your gas station sells or serves alcohol. Liquor liability insurance provides coverages 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 comparatively be exposed to substantial losses due to fire than other businesses. 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 policy 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.
Is Gas Station Insurance Premium Affordable?
Your insurance premium depends on various factors:
- Number of employees
- Services offered
Find an agent near you and start your insurance journey today!
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