How Much Does Business Insurance Cost For Gas Stations?

U.S. gas stations can expect to pay between $1,000 and $1,800 annually for comprehensive business insurance, averaging between $85 and $150 per month. The primary cost drivers are the services you offer, the size of your business, location, and claims history.

How Much Does Gas Station Insurance Cost?

Most gas stations in the U.S. spend about $1,000 to $1,800 a year on a complete business insurance plan. That comes out to roughly $85 to $150 per month. Keep in mind, this is only an estimate, actual costs can be higher or lower depending on the size of the business, location, and other factors. 

Running a gas station comes with many risks, from property damage to accidents on the premises. Gas station insurance helps protect your business from these unexpected costs. 

Here are some of the biggest cost drivers:

• Services offered (affects professional liability and cyber)
• Number of employees (increases workers’ compensation requirements)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Business interruption coverage and other add-ons

Knowing how these factors work can give you a clearer idea of the coverage your gas station needs and help you plan for the actual cost of keeping your business protected. 

Average Gas Station Insurance Costs For Coverage Types

Gas stations face a variety of risks, from property damage to accidents involving customers or employees. Different types of insurance cover these risks, and each comes with its own cost. By understanding the average costs for each coverage type, you can see where most of your insurance expenses come from and make informed decisions. 

• General liability insurance: $85 per month
• Business owner’s policy: $100 per month
• Liquor liability insurance: $35 per month
• Product liability insurance: $42 per month
• Environmental Liability Insurance: $100 per month
• Workers’ compensation insurance: $90 per month
• Commercial auto insurance: $146 per month
• Commercial property insurance: $67 per month
• Cyber liability insurance: $45 per month

General Liability Insurance

The average cost of general liability insurance for a gas station is about $85 per month.

General liability insurance protects your gas station from accidents that happen on your property. This policy provides basic protection for everyday risks and is an essential part of running a safe gas station. 

It does not cover accidents involving your employees or damages to your own property, that’s covered by other types of insurance. 

Factors that influence the cost include the business type (your services), location, office environment (if clients frequently visit your office), contract requirements, and previous claims history.

Policy limits: $1 million per occurrence and $2 million aggregate.

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates are modeled from average annual General Liability premiums for gas station businesses, using a blend of typical quotes from small and large insurance agencies and reflecting gas station exposures (fuel handling, convenience store operations, slip-and-fall risk, employee count, and on-site services); actual premiums will vary by insurer, coverage limits, claims history, location-specific risk factors, and policy endorsements.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $100 per month for gas stations.

A Business Owner’s Policy (BOP) combines two important types of insurance into one package: general liability insurance and property insurance. This means it can protect your gas station from accidents involving customers and from damage to your building, equipment, or fuel pumps caused by fire, theft, or vandalism. 

Buying a BOP is often cheaper than purchasing these policies separately, making it a smart choice for many small and medium-sized gas stations. 

Several factors impact the costs including, the size of your business, location risk, number of employees, and any optional endorsements like commercial crime insurance for criminal acts like theft committed by employees, equipment breakdown coverage to protect breakdowns for food dispensing equipment or registers, and computers.

Policy limits: $1 million per occurrence and $2 million aggregate for liability.

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates above are modeled from average annual Business Owner’s Policy (BOP) premiums for gas station businesses, using a blend of typical rates quoted by small and large insurance agencies and reflecting gas station exposures (fuel handling, convenience store inventory, property values, employee count, and location). Actual premiums will vary by insurer, coverage limits and endorsements, property value and protection systems, claims history, and local risk factors.

Cyber Liability Insurance

The average cost of cyber liability insurance for gas stations is $45 per month.

Cyber liability insurance helps protect your gas station if your computer systems or customer data are hacked or stolen. Many gas stations store payment card information, loyalty program data, or employee records. If this information is exposed, it can lead to expensive lawsuits, or cleanup costs. 

Gas stations can benefit from this coverage if they handle any sensitive data, or if they want to cover gaps in their insurance.

Costs are based on factors like the size of your organization, the type of client data you handle, and the cybersecurity measures you already have in place.

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates are modeled from average annual Cyber Liability premiums for gas station businesses, using a blend of typical quotes from small and large insurance agencies and reflecting gas station exposures (payment card systems, POS terminals, loyalty programs, third‑party vendors, and employee access controls); actual premiums will vary by insurer, policy limits and sublimits, revenue size, IT security controls, claims history, contract requirements, and regional risk factors.

Liquor Liability Insurance

The average cost of liquor liability insurance for gas stations is $35 per month.

Liquor liability insurance protects your gas station if you sell alcohol and a customer causes harm after drinking it. Even if alcohol sales are a small part of your business, having liquor liability coverage is important because it protects you from serious financial risks related to alcohol-related incidents. 

Several factors impact the cost including the amount of alcohol your gas station sells, the state in which you operate, and which local laws are applicable, any history of alcohol-related claims your gas station has, and whether you bundle the liquor liability policy with other policies.

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates above are modeled from average annual Liquor Liability premiums for gas station businesses, using a blend of typical quotes from small and large insurance agencies and reflecting gas-station specific factors (amount of alcohol sales, on-premises consumption vs. retail only, number of POS locations, employee training programs, and local liquor laws); actual premiums will vary by insurer, coverage limits and sublimits, claims history, sales volume, endorsements, and regional risk factors.

Product Liability Insurance

The average cost of product liability insurance for gas stations is $42 per month.

This policy applies to gas stations that sell food products. It helps cover liability related to food products. For example, if a gas station sells a contaminated product and someone ends up getting sick over their food and sue’s, this could help cover medical costs or lawsuits.

Product liability insurance can be bundled as part of a BOP. It can also be part of a comprehensive policy that covers refrigerators used for food service and all other inventory.

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates are modeled from average annual Product Liability premiums for gas station businesses, using a blend of typical quotes from small and large insurance agencies and reflecting product exposures (fuel and convenience-store product sales, inventory, food/beverage offerings, and vendor relationships); actual premiums will vary by insurer, coverage limits and sublimits, revenue and sales mix, claims history, risk controls, and regional regulatory and market factors.

Environmental Liability Insurance

The average cost of environmental liability insurance for gas stations is $100 per month.

This coverage protects gas stations against any potential pollution relating to leaks or spills. For example, if there is a leak at a gas station that leads to environmental fines from the city, this could help cover those costs.

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates are modeled from average annual Environmental Liability premiums for gas station businesses using a blend of typical quotes from small and large insurance agencies and reflecting gas-station specific exposures (underground storage tanks, fuel remediation risk, site contamination history, inventory and throughput); actual premiums will vary by insurer, coverage limits and sublimits, tank condition and age, prior claims or contamination, state environmental regulations, and other site-specific risk factors

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a gas station is around $90 per month.

Workers compensation insurance helps protect your employees if they get hurt or sick while working at your gas station. For example, if a cashier slips on a wet floor or a mechanic is injured while handling equipment, this insurance can cover their medical bills and part of their lost wages. 

Premiums are influenced by the size of your payroll, the type of work employees perform (whether in your office or on-site for each client), your claims history, and any implemented safety programs.

Most states require businesses with employees to carry workers’ compensation, making it an essential coverage for any gas station with staff. 

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates are modeled from average annual Workers’ Compensation premiums for gas station businesses using a blend of typical quotes from small and large insurance agencies and reflecting gas-station specific factors (payroll size, job classifications for cashiers and pump attendants, number of employees and part-time staff, local wage levels, and regional claim frequency); actual premiums will vary by insurer, state rate filings, experience modification factor, payroll audits, safety programs, and business-specific risk characteristics.

Commercial Auto Insurance

The average cost of commercial auto insurance for gas stations is about $144 per month.

Commercial auto insurance protects vehicles used for your gas station business. This includes fuel trucks, delivery trucks, or any vehicles that transport goods, equipment, or employees. 

Even if you use a vehicle occasionally for business purposes, having commercial auto insurance ensures your gas station is protected from expensive accidents on the road. 

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for company services.

Policy limits: $1 million combined single limit (covering both bodily injury and property damage).

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates are modeled from average annual Commercial Auto premiums for gas station businesses, using a blend of typical quotes from small and large insurance agencies and reflecting gas-station specific exposures (delivery and utility vehicles, fuel transport risk, employee driving records, number of vehicles, and local traffic and crime factors); actual premiums will vary by insurer, vehicle types and values, annual mileage, coverage limits and deductibles, garaging ZIP code, driver histories, and individual underwriting.

Commercial Property Insurance

The average cost of commercial property insurance for a gas station, when purchased separately, usually runs $67 per month.

Commercial property insurance protects your gas station building and everything inside it, like fuel pumps, registers, and inventory, from damage or loss. If your property is damaged, this insurance can help pay for repairs or replacement, so your business can keep running. 

Premiums are determined by factors like the building’s age and construction type, fire safety systems in place, replacement cost of equipment, neighborhood crime rates, and whether you add endorsements such as professional liability or cyber protection.

Policy limits are usually set according to how much it would cost to replace your property. Depending on your gas station’s location, the size of the building, and the value of your equipment, this amount can easily reach hundreds of thousands of dollars. 

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates are modeled from average annual Commercial Property premiums for gas station businesses, using a blend of typical quotes from small and large insurance agencies and reflecting gas-station specific factors (building replacement cost, inventory and fuel storage, fire/safety protections, location crime and flood exposure, and business revenue). Actual premiums will vary by insurer, coverage limits and endorsements, deductible choices, property condition and protection systems, prior claims, and site-specific risk factors.

Gas Station Business Insurance Costs By Provider

Gas station business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average annual premiums for gas station businesses from both small and large agencies and reflect typical coverages such as general liability, property, business interruption, pollution liability, and workers’ compensation; actual premiums will vary depending on location, station size, fuel sales volume, on-site services, security measures, claims history, and chosen coverage limits

What Factors Impact Your Gas Station Insurance Costs?

Insurance costs for gas stations can vary widely, and several key factors can influence how much you’ll pay for. Understanding what affects your premiums can help you plan your budget and make smart choices to protect your business. 

Type Of Amenities

Different gas station amenities carry different risks. Gas stations with 24-hour access can face higher risks, as can those that sell alcohol. Gas stations with shower centers, restaurants, or car washes can also face higher risks.

Location

Gas stations in high-crime, flood-prone, or urban areas typically pay more for property and liability insurance. A low-risk suburban location with fewer claims can lower your premiums.

Size Of Your Operation

More square footage, employees, and revenue all raise the chances of a claim. Workers’ compensation costs also rise with larger staff counts, especially in environments where workers travel to and from other locations for work purposes.

Property Value And Office Equipment

Added services like convenience stores, alcohol sales, car washes, or food services increase your commercial property premiums. Many gas stations add endorsements like cyber insurance to protect client information and other data.

Claims History

If you’ve filed frequent insurance claims, underwriters will see you as a higher risk, leading to higher rates. A clean claims record can qualify you for discounts.

Policy Limits And Deductibles

Higher policy limits mean better protection but come with a higher premium. Choosing a larger deductible can lower your monthly costs but raises your out-of-pocket risk when claims occur.

Optional Endorsements

Add-ons like business interruption, cyber liability, and hired and non-owned auto coverage tailor protection but increase your premium. They are essential for gas stations with many amenities, sensitive client data, or high-risks of natural disasters interrupting business.

Insurance Provider

Rates vary among insurers. Some specialize in financial risks and offer better pricing or more flexible options for finance-based gas stations. Comparing quotes from multiple carriers can save you money.

How To Lower Your Gas Station Insurance Costs

Insurance for a gas station can be expensive, but there are ways to reduce the cost without giving up important protection. By taking smart steps, improving safety, and choosing the right coverage, you can lower premiums and keep your business well-protected. 

1. Bundle Policies

Many insurers offer discounts if you buy multiple types of coverage together, like combining general liability, property, and commercial auto insurance into one package. Bundling can save money compared to buying each policy separately. 

2. Limit Alcohol Or Tobacco Sales Risk

If your station sells alcohol or tobacco, following age-verification rules and safe handling practices can reduce liability risks. This can help lower liquor or general liability insurance costs. 

3. Maintain Vehicles Or Equipment

Regular maintenance on delivery trucks, fuel pumps, and other equipment reduces accidents and breakdowns. Well-maintained equipment can lead to lower property and commercial auto insurance premiums. 

4. Increase Your Deductibles

Your deductible is the amount you pay out of pocket before insurance starts to cover a claim. Choosing a higher deductible usually lowers your monthly or yearly premium. Just make sure you can afford the deductible if you ever need to use the insurance. 

5. Shop Around & Compare Quotes

Different insurance companies may charge very different prices for the same coverage. Getting multiple quotes allows you to find the best deal. Don’t just compare prices, also check what each policy actually covers.