Over the last few years, there has been a drastic rise in gas station ownership. Many financial advisors believe that owning a gas station is a smart investment. While most people own at least one vehicle, millions of Americans own multiple vehicles. Gas is always in demand because these cars need fuel.

Gas stations are a popular commodity, which is why so many investors are trying to take advantage of this market. It’s also important that you protect your investment. You put a lot of hard work and personal resources into creating your gas station. Without the proper coverage, you could potentially lose everything if something happens to your business. That’s why business insurance coverage is an asset. Business insurance helps protect your investment, customers, and staff so that things can keep running smoothly for a long time.

Read on to learn more about insurance plans for gas stations.

• General Liability

Under the law, general liability insurance coverage is optional. However, as the owner of a gas station, you should carry this type of insurance because, as the name suggests, general liability coverage protects your gas station against everyday events and hazards including, among others:

• Medical expenses
• Third-party property damage and medical expenses
• Legal costs

Gas stations are heavily populated every day because people need to purchase gas. In a split second, someone may fall and injure themselves. Since they injured themselves on your property, you would be held responsible for their medical expenses. Liability coverage will prevent you from having to cover those expenses out of your own personal assets. Liability coverage also covers you if someone’s property is damaged while they are on your premises. You will be covered if one of the gas pumps at the station malfunctions and spills gas all over your customer or causes damage to their vehicle.


Consisting of general liability and other types of asset protection policies, a BOP is usually a particularly important coverage because it covers your business against financial challenges and losses of business assets. Some of the named perils on a typical BOP include:

• Equipment Breakdown – If your gas station equipment breaks down, a BOP will cover the repair or replacement costs.

• Buildings and Contents – A BOP covers both movable and immovable assets. In other words, it covers both the building structure and the property inside the building, including interior furnishings. This means that if a named peril, such as an accidental fire burns your gas station store to the ground, your BOP policy will cover both your property and building losses. If the extent of damage forces you to close your business till the repairs are finished, both your repair cost and loss of income are covered by BOP.

• Loss of Electronic Data – If you use digital technology to run your gas station, such as an inventory management system and accounting software, there is a risk you may lose your data due to cyber attacks or hardware failure. This can force you to spend a significant amount of money to recover or restore your data. However, with a BOP, you wouldn’t necessarily have to pay for these costs out-of-pocket.

• Employee Dishonesty Coverage – At a gas station, employee dishonesty comes in many different forms ranging from stealing money from the cash register to fuel theft. Employee theft accounts for nearly 40% of all retail losses, as reported by Retail Knowledge. Fortunately, a BOP can protect your gas station from losses related to employee theft.

Workers’ Compensation

In addition to liability insurance and BOP, you also need to carry workers’ compensation insurance to cover the medical costs related to workplace injury or illness as well as to comply with the law.
Your employees are a valuable part of your gas station’s success. Worker’s compensation protects your employees if they are injured on the job. The policy covers their medical bills while they recover. It also helps you keep employee morale high so that your staff is excited about coming to work.

Commercial Umbrella Insurance

No matter how much liability insurance coverage you buy, there is a potential of facing an overwhelming claim. For example, a gasoline-fueled fire can cause extensive damage or injury to your customers or surrounding properties, resulting in expensive lawsuits. In such circumstances, commercial umbrella insurance provides you extra coverage and protects you from having to pay out of pocket for claims that exceed your existing liability policy limits.

Underground Storage Tank Coverage

Your gas station stores fuel underground. Problems such as lack of maintenance and corrosion can cause accidents, leading to damages or injuries. Underground storage tank coverage pays for these damages.

Pollution Liability Insurance

Even the smallest gas leak or spill can cause immense harm, such as bodily injuries, property damage, and lawsuits. Pollution liability insurance coverage will pay for these damages and also cover the on-site and off-site cleanup expenses. Check out the laws of the place where you plan to open a gas station as they may require you to carry pollution liability coverage.

Investing sufficiently in your insurance for gas stations can protect you from incurring heavy losses in the future. Do you have additional questions about gas station insurance? Contact the experts at First Insurance Solutions today. We are eager to help you with all your coverage needs.