Data from Statista show that Americans bought more than 6 million cars by the end of 2018, and more than 270 million vehicles were traveling on American roads, including, among others, trucks, buses, motorcycles, and passenger cars. Take note that the majority of these vehicles run on gas or diesel fuel, which means gas is a major business in the US. To give you an idea, per the National Association of Convenience Stores (NACS), more than 122,000 convenience stores are currently selling gas and diesel fuel in the US, generating more than $200 billion sales every year.

This is in addition to over 11,000 stand-alone gas stations across the US that also sell gas and diesel fuel. Still, like any other business, gas stations, too, require insurance coverage to protect themselves from business-related risks. 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

As you’re probably aware, there are many potential hazards at a gas station. For example, at no fault of a customer, a pump can malfunction and spill fuel, igniting a fire that damages the customer’s vehicles. In such a situation, your liability insurance coverage would pay for the resulting third-party property damage and medical expenses, if any.

Business Owners Policy (BOP)

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 – In the event 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.

Investing sufficiently on 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.