Gas Station Insurance

Gas station business insurance protects you in the event of accidents, property damage, or liability claims that can arise during daily operations. For example, if a customer slips on a fuel spill or your fuel pumps are damaged in a fire, your insurance would cover the cost. Business insurance helps keep your gas station running smoothly by covering legal fees, equipment damage, and workplace injuries.

Why Do Gas Stations Need Insurance?

Running a gas station comes with risks, and accidents can happen at any time. Without insurance, even a small problem could cost you a lot of money. For example, if a customer slips on spilled fuel and gets hurt, you might have to pay their medical bills.

There are also other risks, like someone damaging your property, a car crash near your station, or a customer claiming you were careless. Business insurance helps protect you from paying for these problems out of your own pocket. It covers things like property damage, injuries, and even legal costs if someone sues you.

Insurance also helps people trust your business. Some companies and partners may ask for proof of insurance before working with you. Whether you run a small station or several locations, having the right insurance lets you focus on your work, knowing you’re protected if something goes wrong.

What Insurance Do Gas Stations Need?

Running a gas station involves much more than just filling tanks. You manage hazardous fuel, expensive pumps, a constant flow of traffic, and often a convenience store full of customers. With so many moving parts, accidents or property damage can occur in an instant. Protecting your investment requires the right coverage mix. Below is a guide to the key business insurance policies that gas station owners need to know.

Business Owner’s Policy (BOP)

A Business Owner’s Policy is a smart way to get broad coverage while saving money. It bundles general liability and commercial property insurance into a single package. This is often cheaper than purchasing the policies separately. For gas stations, a BOP covers damage to your building, pumps, and convenience store inventory.

Example: A fire breaks out in the back office and damages the structure and your computer system. A BOP helps pay for the building repairs and replaces your destroyed office equipment so you can reopen quickly.

Workers’ Compensation Insurance

If you hire staff to run the registers, stock shelves, or manage the pumps, you likely need this coverage. Workers’ compensation protects your employees if they get sick or hurt while performing their job duties. It pays for medical treatment and reimburses them for lost wages while they recover. Most states require this coverage by law as soon as you hire your first employee.

Example: An attendant burns their hand severely while brewing coffee in the convenience store area. Workers’ compensation pays for the ambulance ride and the hospital treatment needed for the burn.

General Liability Insurance

This is the backbone of protection for most small businesses. General liability covers you if a third party, such as a customer or vendor, claims you caused them bodily injury or property damage. If a customer gets hurt on your premises, this policy covers their medical bills. It also pays for legal fees if they decide to sue your business.

Example: A customer trips over a cracked piece of concrete near the air pump and breaks their ankle. They ask you to pay for the surgery. General liability insurance covers those medical costs and handles the legal defense if the dispute goes to court.

Commercial Auto Insurance

Personal car insurance policies rarely cover accidents that happen while driving for work. If your business owns vehicles, or if employees use personal cars to run business errands, you need commercial auto insurance. It covers medical bills and vehicle repairs if a driver is involved in a crash while working. Gas stations typically pay an average of $185 per month, or $2,220 per year, for this coverage.

Example: You send an employee to the bank to deposit cash. On the way, they slide on the ice and hit a parked car. Commercial auto insurance pays to repair the damage to the other vehicle.

Umbrella Insurance

Standard insurance policies have financial limits. Umbrella insurance provides an extra layer of security that sits on top of your other liability policies. If a massive claim exceeds the limit of your general liability or auto policy, umbrella coverage pays the difference. This prevents you from having to pay large legal judgments out of pocket.

Example: A major fuel leak causes significant environmental damage to a neighboring property and makes several people ill. The lawsuit demands $1.5 million in damages. Your primary liability policy only covers up to $1 million. Umbrella insurance steps in to pay the remaining $500,000.

Cheapest Gas Station Workers’ Compensation Insurance

The cheapest option for Workers’ Compensation is AmTrust, with an average annual cost of $3,724.

Note: These Workers’ Compensation estimates are based on a gas station with a small number of employees (e.g., 2-3 full-time equivalents) in a state with average rates. Actual premiums will vary significantly based on your state, total payroll, job classifications (e.g., cashier vs. attendant), and your business’s safety record (experience modifier).

Cheapest Gas Station General Liability Insurance

The cheapest option for General Liability is Acuity, with an average annual cost of $1,133.

Note: These General Liability estimates are based on a typical gas station with standard customer foot traffic and basic coverage limits for third-party bodily injury (e.g., slip-and-fall) and property damage. Actual premiums will vary based on your location, business revenue, specific coverage limits, and claims history.

Cheapest Gas Station Business Owner’s Policy

The cheapest option for a Business Owner’s Policy (BOP) is The Hartford, with an average annual cost of $3,224.

Note: These Workers’ Compensation estimates are based on a gas station with a small number of employees (e.g., 2-3 full-time equivalents) in a state with average rates. Actual premiums will vary significantly based on your state, total payroll, job classifications (e.g., cashier vs. attendant), and your business’s safety record (experience modifier).

How Much Does Gas Station Insurance Cost?

Gas station insurance costs can vary depending on the size and type of your business. For small gas stations with just a few employees, general liability insurance may cost between $1,000 and $2,000 per year. This insurance helps protect you from claims if someone gets hurt or property is damaged at your station.

If your gas station is larger, has many employees, uses company vehicles, or needs extra coverage like workers’ compensation or property insurance, your business insurance costs may be higher. In some cases, premiums can go over $2,500 a year. The more risks your business faces, the more you can expect to pay for good coverage.

Several things affect your insurance cost, such as where your gas station is located, how many people work for you, and the types of services you offer. Insurance companies also look at your past claims and whether you bundle different policies together. While cheaper insurance might seem good, it’s important to pick a plan that truly protects your gas station from common risks.

Note: These estimates are based on averages for a small to medium-sized U.S. gas station. The figures reflect typical annual premiums for businesses with a low claims history, standard coverage limits, and a small number of employees. Actual premiums will vary significantly based on your specific location, the size of your payroll, the value of your property (including pumps and tanks), your business’s revenue, your claims history, and the specific coverage limits and deductibles you select.

How Is Your Gas Station Insurance Cost Calculated?

Insurers review several distinct details to determine your final premium. The overall scale of your operation is a primary factor. A large facility with high revenue and a dozen employees will generally pay more than a small station with a minimal crew.

The scope of your daily operations matters just as much because different services carry different risks. A station that performs auto repairs or offers 24-hour service faces higher liability costs than a business that simply sells fuel and snacks. Your physical address also plays a role since insurance rates fluctuate based on state laws and local crime rates.

Providers also carefully analyze your track record. If your business has filed claims in the past, insurers may view you as a higher risk and increase your rate. Finally, the total value of your assets will impact the quote. This includes the replacement cost of your fuel pumps, the value of the building, and coverage for any commercial vehicles you own.