Can I Get Gas Station Insurance If I Sell Alcohol at the Pump?
By Sophia Ramirez
January 20, 2025
Convenience stores attached to gas stations serve as retail hubs. They provide accessibility to on-the-go individuals, offering fuel, snacks, and alcoholic beverages in many locations. Selling alcohol at the pump attracts more customers and introduces legal and financial risks, making business insurance coverage and compliance with dram shop laws essential.
For gas stations selling alcohol, insurance plays a vital role in eliminating potential liabilities, from underage sales to accidents involving intoxicated customers. Without proper coverage, owners risk hefty fines, lawsuits, or business closure. The right insurance policies ensure legal compliance, financial stability, and uninterrupted operations, safeguarding business assets and reputation.
Insurance Requirements for Alcohol Sales
Gas stations selling alcohol must comply with state and local regulations. Insurers assess risks, including liability for intoxicated patrons, product safety, etc. Below are some coverages to know:
Liquor Liability Insurance: If a customer buys alcohol, gets intoxicated, causes an accident, and sues your business, this policy helps.
General Liability Insurance: A customer slips on a wet floor and sues for medical expenses; this insurance covers such claims.
Product Liability Insurance: Required if a customer gets sick from expired snacks bought at your station and sues for damages.
Workers' Compensation Insurance: Legally required when an employee gets burned while refilling coffee machines, covering their bills and wages.
Commercial Property Insurance: When a fire damages your fuel pumps and store, paying for repairs or rebuilding is often required.
Business Interruption Insurance: Recommended if your station shuts down for two months after a storm, compensates for lost income and expenses.
Liquor License Insurance: This may be required if your station is fined for selling alcohol to a minor and helps cover legal costs.
Commercial Auto Insurance: Necessary if your business owns vehicles and a company-owned van delivering alcohol gets into an accident.
Types of Coverage Needed
Operating a gas station while selling alcohol requires multiple insurance policies to eliminate risks. From liability issues to property damage, businesses must be ready. Here are the coverages you should know:
Liquor Liability Insurance: Protects against alcohol-related incidents as stations are to be held liable for related incidents.
General Liability Insurance: Covers legal and medical expenses arising from third-party injuries, property damage, or negligence claims.
Product Liability Insurance: Provides protection if alcohol or other products sold cause harm due to spoilage or improper labelling.
Commercial Property Insurance: Covers damage to buildings, equipment, and inventory due to fire, theft, vandalism, or natural disasters.
Business Interruption Insurance: Helps cover lost revenue and operational expenses if the station temporarily closes due to a covered event.
Workers' Compensation Insurance: Provides coverage for employee injuries, including medical bills, lost wages, and rehabilitation costs.
Liquor License Insurance: Covers legal fees or fines related to liquor violations, ensuring compliance with local and state regulations.
Commercial Auto Insurance: Protects company-owned vehicles used for deliveries, supply runs, or other business-related transportation.
Umbrella Insurance: Offers liability coverage beyond standard policies, protecting against lawsuits and losses exceeding limits.
Cyber Liability Insurance: Covers losses from cyberattacks, breaches, or credit card fraud, protecting customer and business information.
How Selling Alcohol Affects Premiums
Selling alcohol increases insurance premiums due to higher liability risks. Businesses face potential claims from intoxicated customers causing accidents or harm. Insurance companies charge more to cover these risks, especially for liquor liability insurance, which protects against costly lawsuits related to alcohol-related incidents, including fights, DUIs, or underage sales violations.
Premiums also rise because alcohol sales increase general liability and property risks. A gas station with alcohol sales may face stricter underwriting rules, higher deductibles, or additional coverage requirements. Insurers consider past claims, security measures, and compliance with local laws when determining rates, making risk management crucial to controlling costs.
Meeting Local and State Regulations for Alcohol Sales and Insurance
Businesses selling alcohol must comply with state and local liquor laws, often requiring liquor liability insurance. Regulations for selling alcohol vary but typically mandate specific coverage limits and adherence to responsible serving practices. Failure to comply can lead to fines, license suspension, or expensive lawsuits, increasing operational and legal risks.
Proper employee training on ID verification, responsible serving, and intoxication signs helps maintain compliance and reduce liability. Some states make it necessary for businesses to participate in alcohol safety programs, which may also lower insurance premiums. Staying updated on changing laws and maintaining proper coverage ensures legal and financial protection.
Get a Free Gas Station Insurance Quote
Are you in need of an insurance plan for your gas station? Insure C-Store is here to simplify the process for you. Get a quote by entering your name and number, then choose your business property type. Click submit, and you’ll be guided to a brief form to gather business information, such as desired insurance coverage, specific fuel station coverage options, and your contact details. Once done, our team will take it from there.
Don’t hesitate to call our insurance agents or visit us with any questions.
Sophia Ramirez
Insurance Research Analyst & Writer
Sophia Ramirez is an experienced insurance writer specializing in business coverage. With a deep understanding of industry risks, she provides clear, insightful content to help business owners safeguard their investments.