THURSDAY, DECEMBER 22, 2022
Operating a gas station requires owners and decision-makers to assess and address all potential risks and exposures diligently. Significant hazards may lead to devastating losses throughout the daily tasks of employees and customers. Without an adequate insurance portfolio to limit out-of-pocket costs, your business could face irreparable financial ramifications from even a single incident or error.
What Types of Insurance Do Gas Stations Need?
Given the regular vehicle traffic at gas stations and the consistent presence of chemical and flammable substances on the premises, your daily operations consist of hazards that could easily lead to catastrophic accidents. With that in mind, it’s essential to build an insurance package to cover many common incidents that may occur at your business. For most gas stations, the following types of insurance may be advisable:
Workers’ compensation—Employees at gas stations may often be exposed to significant risks and hazards. If one of your workers is injured on the job or develops a work-related illness, workers’ compensation can provide crucial financial assistance for the following losses or expenses:
- Medical bills
- Reduced earnings
- Disability benefits
- Death benefits
- Legal costs
General liability—Customers, suppliers and passersby may also be exposed to various hazards while on your premises. This coverage can help pay for damages arising from the following incidents affecting third parties:
- Bodily injury
- Property damage
- Personal and advertising injury (e.g., wrongful arrest, false advertising, slander, libel)
Commercial property—Your gas station depends on various property and equipment to operate. This coverage, also known as business property insurance, can provide financial aid to repair or replace the following:
Commercial auto—If your gas station uses motor vehicles for business purposes, this coverage is essential. A commercial auto insurance policy can help pay for losses and damages arising from automobile-related incidents for which you were at fault and may also render aid to repair or replace your own damaged vehicles.
Business income—If a covered event forces your gas station to close or otherwise alter its normal operations temporarily, this coverage, also known as business interruption insurance, can help pay for the following:
- Rent/mortgage payments
- Employee payroll
- Lost income
Crime—This coverage can protect your business from many types of criminal activity that gas stations may be at risk of on a daily basis, including theft, burglary and robbery. Generally, policies also include coverage for theft your employees committed.
Commercial umbrella—Given the potential for severe accidents existing at many gas stations, it may be necessary to retain secondary coverage like that provided by a commercial umbrella policy. In the event that liability limits of other policies, such as general liability and commercial auto, are exceeded, commercial umbrella insurance can provide additional aid.
How Much Does Insurance for Gas Stations Cost?
The cost of an adequate insurance portfolio for your gas station may vary depending on your circumstances. Before being able to provide you with an accurate quote for coverage, insurance companies will generally consider the following:
- Estimated annual revenue
- Services offered
- Business equipment and property value
- Number of employees
Get the Right Coverage
The insurance needs of gas stations can be complicated and extensive. Your business likely has unique factors that impact its risk levels and could differentiate them substantially even from other gas stations that may appear outwardly similar. Fortunately, the experts at Maranatha Tax & Insurance Agency are here to help. We will work with you to assess the specific details of your business and build an optimal insurance portfolio at an ideal price.
Visit our website or call us at 352-508-4294 to get started.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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