Gas Station Insurance
Gas Station owners can compare insurance policies from top providers through Insuranceopedia to find the right coverage for general liability, property damage, and umbrella insurance.
We’ve saved shoppers an average of $320 per year on their small business 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.
Key Takeaways
Gas stations face real liability risks and need proper insurance.
Common policies include general liability, workers’ comp, umbrella and commercial auto insurance.
Insurance costs vary, but you can lower premiums with smart strategies.
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.
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Quick Tip: Bundle general liability and workers comp into a BOP to save money without sacrificing essential coverage.
What Insurance Do Gas Stations Need?
Owning a gas station might seem simple, but it comes with more risks than many people think. You’re dealing with fuel, heavy equipment, moving vehicles, and lots of customers every day. Accidents, fires, or injuries can happen quickly. That’s why it’s important to protect yourself and your business with the right insurance. Here’s a simple guide to the most important business insurance policies gas station owners should consider.
General Liability Insurance
General liability insurance is the foundational insurance policy for most small businesses. It protects you from third-party claims of bodily injury, property damage, and personal injury. If you accidentally damage a client’s property or someone gets hurt because of your work, general liability pays for legal fees, repairs, or medical bills.
Example: A customer slips on a fuel spill at your gas station and injures their back. They demand that you pay for their medical bills. General liability insurance can cover the cost of their treatment and any legal fees if they decide to file a lawsuit.
Workers’ Compensation Insurance
Workers’ compensation insurance covers your employees if they get injured or become ill as a result of their job. It will cover medical bills, lost wages, rehabilitation, and even death benefits. It’s also required by law in most states if you have employees.
Example: One of your gas station employees slips on an oil spill in the service area and breaks their wrist. Workers’ compensation insurance pays for their emergency room visit and helps cover their lost wages while they take time off to heal.
Workers’ compensation insurance is required for gas stations with employees in almost every state. It helps protect both your workers and your business when accidents happen on the job.
Commercial Auto Insurance
If you or your employees drive for business purposes, personal auto insurance likely won’t cover accidents. Commercial auto fills that gap. Specifically it will help to cover vehicle damage, injuries, and liability if you’re involved in an accident while driving for work.
Example: One of your gas station employees is delivering fuel or parts in a company vehicle and accidentally rear-ends another car. Commercial auto insurance covers the repair costs for both vehicles and pays for any medical bills if someone is hurt.
Gas stations pay an average of $185 per month, or $2,220 per year, for commercial auto insurance.
Business Owner’s Policy (BOP)
A BOP bundles general liability and commercial property insurance into one policy, often at a lower cost than buying them separately. It will cover property damage to your business location or equipment, along with liability protection.
Example: A severe storm damages the roof of your gas station’s convenience store, causing water to leak inside and ruin shelves, snacks, and drinks. A Business Owner’s Policy (BOP) helps pay for the roof repairs, replaces the damaged inventory, and covers lost income while you’re closed for cleanup.
Umbrella Insurance
Umbrella coverage provides extra protection beyond the limits of your existing policies, like general liability and commercial auto. Once a claim exceeds the limits of your underlying policy, umbrella insurance kicks in to cover the remaining amount.
Example: A customer claims they had a serious allergic reaction after coming into contact with a cleaning chemical used in your gas station’s restroom. They sue your business for $1 million. Your general liability insurance covers up to $500,000, but that’s not enough. Umbrella insurance steps in to cover the remaining $500,000.
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Gas Station Insurance Requirements
Running a gas station involves risks, so having the right insurance is very important. Some insurance policies are required by law in many states, while others are optional but highly recommended to protect your business.
Workers’ Compensation Insurance
If you have employees, most states require you to carry workers’ compensation insurance. This insurance pays for medical bills and lost wages if an employee gets hurt or sick because of work. It helps protect both your workers and your business.
Commercial Auto Insurance
If your gas station owns vehicles used for work, like fuel delivery trucks or company vans, most states require commercial auto insurance. This covers damages and injuries from accidents involving those vehicles.
General Liability Insurance
General liability insurance is usually not required by law but is very important. It helps protect your business if someone is hurt on your property or if you damage someone else’s property. Many clients and landlords ask for proof of this insurance before working with you.
Business Owner’s Policy (BOP)
A Business Owner’s Policy (BOP) combines property insurance and liability insurance into one package. It protects your gas station’s building, equipment, and inventory from things like fire, storms, or theft. It also covers injuries or damage you might be responsible for. A BOP is a convenient way to get broad coverage in one policy.
Umbrella Insurance
Umbrella insurance gives extra protection beyond the limits of your other policies, like general liability. If you face a large claim or lawsuit that goes over your regular insurance limits, umbrella insurance helps cover the extra costs. This helps keep your business financially safe from big risks.
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 $400 and $1,200 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.
How Is Your Gas Station Insurance Cost Calculated?
Insurance companies decide your gas station’s insurance cost based on several important factors. One of the biggest is how big your business is. Small gas stations with just a few workers usually pay less than larger stations with many employees.
The kinds of services you offer also matter. If your station handles more risky tasks, like fuel delivery or repairs, your insurance might cost more. Where your gas station is located also affects the price, because insurance rates can change depending on the state or city.
Insurance companies also check your history with claims. If you’ve made claims before, they might think your business is riskier and charge more. They also consider how much your equipment is worth, if you have company vehicles, and the type and amount of coverage you want.
Tips To Lower Your Gas Station Insurance Costs
Insurance costs can add up quickly for gas station businesses, but there are practical ways to keep your premiums manageable without skimping on coverage. The key is to understand which factors you can control and take proactive steps to minimize risk.
- Bundle your policies. Combine general liability, property insurance, and other coverages into a Business Owner’s Policy (BOP) to qualify for a multi-policy discount.
- Consider Hired and Non-Owned Auto (HNOA) coverage. If you or your employees use personal vehicles for work, HNOA can be more cost-effective than a full commercial auto policy.
- Keep a clean claims history. Avoiding claims through proper training and safety procedures can lower your risk profile and lead to reduced premiums over time.
- Invest in workplace safety. Implementing safety protocols and training for employees helps reduce the chances of injury claims and can lower workers’ compensation costs.
- Raise your deductible. Opting for a higher deductible can lower your monthly premium, but be sure your business can absorb the extra out-of-pocket cost in case of a claim.
- Review your coverage annually. Adjust your policies as your business evolves to avoid paying for coverage you no longer need.
- Compare quotes from multiple insurers. Rates vary widely, so shopping through Insuranceopedia can help you find the best deal for your current needs.
Taking a strategic approach to your insurance planning can make a real difference in your bottom line. With a little research and regular review, you can stay protected and cost-efficient at the same time.
Quick Tip: Train employees on safety protocols to reduce accidents, lower your claims history, and potentially qualify for lower insurance premiums.
How Do You Get Gas Station Insurance?
Here’s how to get gas station insurance in a few simple steps:
Assess Your Coverage Needs
Start by identifying the specific risks your business faces, property damage, injuries, theft, or vehicle use. This helps determine which policies (like general liability, workers’ comp, or commercial auto) you’ll need.
Gather Your Business Information
Insurers will want details such as your business structure, number of employees, annual revenue, types of services offered, and any past claims history.
Compare Insurance Providers
Get quotes from Insuranceopedia. We specialize in finding affordable small business policies and we may be able to offer you better rates or tailored coverage.
Review And Customize Your Policy
Carefully go over each quote and make sure the limits, deductibles, and exclusions meet your needs. Don’t automatically choose the cheapest option, make sure it truly protects your business.
Purchase And Maintain Your Coverage
Once you’ve selected a policy, buy your coverage and keep proof of insurance on hand. Set reminders to review and renew it annually as your business grows or changes.
Following these steps helps ensure you’re properly insured and set up to handle risks confidently and professionally.
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