A gas station has many of the same needs for insurance as many other types of businesses. If they own the building they occupy, property insurance needs to be purchased. Gas pumps and canopies are usually insured as additional structures on a policy. Don’t assume they are automatically covered under the main building’s limit. Check to make sure they are insured properly under the policy. Contents coverage is needed for inventory and business possessions such as the cash register. Food spoilage coverage may be needed for the convenience store in case of power outage. Liability insurance is also needed for anyone operating a business.
All of this coverage can be insured under a Business Owners Policy (BOP) or Commercial Package Policy (CPP). The CPP or BOP will be the foundation of your insurance package. With the building, contents and liability insurance in order, you can then look at filling in the other required or desired lines of insurance.
Workman’s Compensation insurance is required when you have employees in your business. If an employee is injured while on the job, this insurance policy provides medical benefits for them. Workman’s Comp is regulated by state law and requirements may vary by state.
Another major need is pollution coverage. This is normally not covered under the standard liability coverage. Gas stations have either above ground or underground storage tanks. Contamination from gasoline leaks are required to be cleaned up. Pollution coverage can provide help with cleanup costs from accidental pollution and gas spills. Never overlook this line of coverage on your business.
Liquor liability is another required coverage if your business sells beer, liquor or both. Like work comp, this is a required and state regulated insurance coverage. Required amounts of insurance vary state by state.
Another useful policy to consider is employee theft coverage. This would provide protection from an employee stealing from the till or taking home inventory. This can be added onto your insurance package for a set amount of coverage, usually in increments of $10,000 or $25,000.
Umbrella policies also provide extra liability coverage over and above the BOP or CPP. This may be a valuable addition to your insurance package.
Other lines may also provide needed coverage for your business. Remember to explain all aspects of your business to your insurance agent so he can get you the proper coverage in place. Don’t just look at the bottom line, but instead make sure you are getting the types of policies that you need.