Last Updated: May 30, 2024, 12:43 pm by TRUiC Team

Gas Station Business Insurance

Getting insurance for your gas station is essential.

Gas stations need to be protected against things like property damage, personal injury, and product liability.

For example, a gas leak causes a fire that damages your premises and neighboring properties, or customers become ill after consuming food from your store.

We’ll help you find the most personalized and affordable coverage for your unique business.

How to Start an LLC Tip Icon

Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Gas Station Business

General liability insurance is — generally speaking — one of the most important insurance policies for gas stations.

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Alongside general liability, there are numerous additional insurance policies that may prove useful for your gas station, such as:

  • Property insurance
  • Workers’ compensation insurance
  • Business interruption insurance
  • Data breach insurance
  • Commercial umbrella insurance
  • Liquor liability insurance

The insurance providers from which you can acquire these insurance policies for your business are generally categorized into two general groups:

  • Traditional brick-and-mortar insurers — Known for their reputations and long-standing histories, firms in this group are generally some of the largest in the US (e.g., Nationwide and The Hartford). They typically own physical stores, employ insurance agents, and charge extortionate amounts for their services.
  • Online insurers — By comparison, firms in this group are generally less well-heard of. However, due to how affordable their policies are, they are increasingly becoming the more favored option.

Let's Find the Coverage You Need

The best insurers design exactly the coverage you need at the most affordable price.

Cost of General Liability Insurance

The average gas station in America spends between $450-$1,000 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a gas station business to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Graph showing average price of general liability insurance prices per industry

How to Start an LLC Tip Icon

Find the Best Rate

Discover the best coverage at the lowest rate in our affordable business insurance review.

Common Situations That General Liability Insurance May Cover for a Gas Station Business

How to Start an LLC Tip Icon

Example 1: While in use, a pump malfunctions and spills fuel at no fault of the customer. The fuel ignites, quickly damaging multiple customers’ vehicles. General liability insurance would likely cover the vehicles’ damage.

How to Start an LLC Tip Icon

Example 2: A customer slips on ice during winter while pumping fuel, and their wrist is fractured in the fall. General liability insurance would likely cover the injury.

How to Start an LLC Tip Icon

Example 3: The hallway to the restroom is regularly used to store overstocked and recently delivered items in tall stacks. A customer who’s walking to the restroom bumps into these stacks and is injured when the products fall. General liability insurance would probably cover the customer’s injuries.

Other Types of Coverage Gas Station Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Property Insurance

Gas stations normally need commercial property insurance for their building and pumps. Property insurance often also covers items that a business owns and keeps on its property.

Gas stations frequently have expensive build-outs because pumps must be carefully designed and installed. Make sure you have enough coverage to replace both your station’s building and its pumps.

This coverage is often available as part of a business owner’s policy (BOP).

Workers’ Compensation Insurance

Most gas stations need workers’ compensation insurance because they have employees. Workers compensation covers work-related injuries and illnesses, and many states legally require businesses that employ workers to carry it.

Workers’ compensation insurance is usually purchased on its own.

Business Interruption Insurance

Running a gas station comes with many regular expenses, and bills don’t cease after a disaster. Should your gas station have to shut down following a disaster, business interruption insurance may help pay expenses while the station is closed and not bringing in revenue.

Business interruption insurance is widely available as part of a BOP.

Data Breach Insurance

Customers expect to be able to pay at the pump, but accepting card payments exposes a business to potential data breaches. Data breach insurance may provide coverage if customers’ payment information is stolen through skimmers or via another means.

Data breach insurance can be added to a business owner’s policy as an endorsement, as opposed to a stand-alone policy.

Commercial Umbrella Insurance

A gasoline-fueled fire can quickly cause substantial damage and injury, and resulting lawsuits tend to be expensive. Commercial umbrella insurance offers additional liability protection that might help cover expensive lawsuits like these (and others).

Commercial umbrella insurance can be added to some BOPs.

Liquor Liability Insurance

Though liquor laws and the insurance policies surrounding the sale of liquor vary from state-to-state and situation-to-situation, liquor liability insurance may be needed to protect your assets if your gas station serves or sells alcohol.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your gas station business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Gas Station Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

If you want to protect the financial stability of your gas station business, the first step is to obtain appropriate business insurance for it before opening. 

Moreover, there are cases in which certain policies (e.g., workers’ compensation employment or commercial auto insurance) will be a legal prerequisite for your business to be able to get started.

Not necessarily. Certain exceptions may be written directly into your gas station business insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.