Can I Get Insurance for a Newly Opened Gas Station in 2025?
By Sophia Ramirez
January 27, 2025
Gas stations are vital businesses, offering fuel and other services. Due to the nature of flammable materials stored on-site, they are exposed to risks such as fires, accidents, and theft. Managing these hazards is important for operations and safety. One way to stay protected is to get gas station insurance.
For newly opened gas stations, insurance is essential to eliminate risks. The financial burden of accidents, property damage, or liability claims can be overwhelming without coverage. Insurance ensures protection from events such as fire, theft, and more. Insurance companies help gas station owners to maintain business continuity and comply with requirements.
Insurance Requirements for New Gas Stations
New gas stations need comprehensive insurance coverage to protect their operations, employees, customers, and assets. These policies address various risks. Here’s what these insurance plans cover.
General Liability Insurance: This insurance covers the costs if a customer or employee is injured on the job or property damages.
Property Insurance: Property insurance covers assets such as fuel tanks, equipment breakdown, and inventory from loss or damage.
Environmental Liability Insurance: Environmental liability insurance protects stations from the costs of contamination from fuel spills or leaks.
Workers' Compensation Insurance: This insurance financially supports injured employees, covering medical costs and lost wages.
Business Interruption Insurance: Business interruption insurance helps gas stations cover lost business income during theft, fires, etc.
Pollution Liability Insurance: Pollution liability insurance covers gas stations for the costs of cleaning up damage by pollutants.
Liquor Liability Insurance (if applicable): Liquor liability insurance is necessary if a gas station sells alcohol as it ensures compliance with laws.
Commercial Auto Insurance: Commercial auto insurance covers gas stations for accidents or damages from vehicles owned by the station.
Crime Insurance (Employee Dishonesty): Crime insurance covers financial losses due to criminal activities, such as employee dishonesty or theft.
Umbrella Insurance: Umbrella insurance covers beyond the limits of other policies, such as general liability or auto insurance.
Product Liability Insurance: Product liability insurance protects gas stations if products sold cause harm to customers.
Commercial Property Insurance: Property insurance protects the business property, including buildings, storage tanks, equipment, etc.
Employer’s Liability Insurance: This protects from legal claims made by employees for workplace issues not included in workers' compensation.
Factors Affecting Insurance for New Gas Stations
When considering the new gas station, it's essential to understand the complexities of securing insurance coverage. Insurance plays a role in protecting the investment. The following factors affect insurance costs:
Location: The location of a gas station plays a significant role in determining the cost of your insurance premiums.
Size of the Gas Station: Larger gas stations with more infrastructure or multiple fuel and gas pumps often have higher premiums.
Fuel Sales Volume: Stations with higher fuel sales volumes face increased liability risks and may need higher coverage.
Environmental Risks: Gas stations are exposed to environmental risks such as fuel leaks, spills, and contamination.
Type of Coverage: The specific coverage picked for a station impacts the insurance cost but protects risks the business faces.
Inventory Value: Inventory value, including fuel, convenience store products, and equipment, affects insurance premiums.
Employee Count: A gas station's employee count directly affects workers' compensation insurance premiums.
Risk Management Practices: Risk management practices, such as routine maintenance, safety protocols, etc, can lower insurance premiums.
Claims History: A station's previous claims history impacts future insurance premiums, leading to high insurance costs.
Building Age and Condition: The condition of the building affects insurance costs; modern buildings might have low rates and vice versa.
How to Get Insurance for a New Gas Station
Securing insurance for a new gas station involves several steps, ensuring the business is protected against various risks. It’s essential to assess the station's specific needs. Here’s how to get insurance:
Assess Insurance Needs: Start by determining the coverage types you need, including general liability, property, environmental, etc.
Evaluate the Gas Station's Risks: Identify the risks associated with running a gas station, such as fuel spills and environmental hazards.
Research Insurance Providers: Research reputable insurance providers who specialize in coverage for gas stations, providing reliable protection and support.
Request Multiple Quotes: To find the best deal, request quotes from multiple insurance providers to make an informed decision.
Choose Coverage Types: Choose the appropriate insurance coverage types based on the risks assessed earlier to protect your business.
Consider Bundling Policies: Consider bundling insurance policies, such as property, liability, and auto coverage, with the same provider
Provide Accurate Business Information: When applying for insurance, provide accurate and detailed information about the gas station.
Consult with an Insurance Agent or Broker: Consult with an insurance agent or broker who specializes in gas station insurance for guidance.
Review and Compare Policies: Once you have received quotes, carefully review and compare the details and coverage of each policy.
Finalize the Insurance Plan: After thorough comparison and consultation, finalize the insurance plan that meets the gas station's needs.
Set Up Payment and Billing: Set up payment and billing arrangements with the chosen insurance provider to maintain continuous coverage.
Review Annually and Adjust Coverage: Review your insurance coverage, ideally, once a year, to ensure it remains relevant to the evolving needs.
Get a Free Gas Station Insurance Quote
Need an insurance plan for your gas station that you can count on? Insure C-Store makes it effortless. To get a quote, enter your full name and phone number, select your business property type, and click submit. Next, you’ll be taken to a simple form asking for your business information, coverage preferences, fuel station-specific details, prvious providers, and contact info. Once done, our agents will reach out to you.
For further assistance or questions, call our agent or visit our office.
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.