Key Takeaways
- General liability insurance covers bodily injury and property damage claims from third parties.
- Commercial property insurance protects buildings, equipment, inventory and more from disasters.
- Commercial auto insurance covers vehicles used for business and protects from liability.
- Pollution liability covers cleanups and claims from accidental fuel or chemical spills.
- Workers’ compensation provides medical care and lost wages for injured employees.
Introduction
Petroleum and petroleum products merchant wholesalers deal in flammable, sometimes hazardous materials and rely heavily on vehicles, facilities and equipment. This makes certain business insurance coverages absolutely essential to protect operations from unplanned costs and liability issues. The top policies every wholesaler in this industry should consider include general liability, commercial property, commercial auto, pollution liability and workers’ compensation insurance.
General Liability Insurance
General liability insurance provides protection for businesses in the petroleum and petroleum products merchant wholesalers industry from expensive lawsuits and claims that could arise due to the inherent risks of storing and transporting flammable fuels. It covers a wide range of claims including bodily injury, property damage, pollution incidents, delivery accidents, and product defects. Pricing for general liability insurance starts around $1,000 annually for this industry.
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Based on industry data and averages, the estimated annual pricing for general liability insurance for businesses in the Petroleum and Petroleum Products Merchant Wholesalers industry with NAICS code 4247 is around $2.50 per $100 of gross receipts, with a minimum premium of $1,000. This pricing is derived from risk factors inherent in the handling and distribution of petroleum and petroleum products, which can pose risks such as environmental hazards and potential for accidents. The price was calculated by taking the industry average rate and applying it to the minimum threshold.
Estimated Pricing: $1,000 – $2,000+
Commercial Property Insurance
Commercial property insurance offers vital coverage for businesses in the petroleum and petroleum products merchant wholesalers industry, protecting properties, equipment, inventory and more from unforeseen disasters to ensure continued operations. It provides top benefits like coverage for fires, equipment damage, business interruption, storage tanks, and pollution liability which are crucial risks for these businesses. The estimated pricing also gives businesses an idea of affordable rates to protect their operations from significant losses.
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Based on average premium rates for businesses in NAICS code 4247, the estimated annual pricing for commercial property insurance would be around $1.50 per $100 of insured value. This price is derived from property and casualty insurance rate filings and loss history data for wholesale petroleum businesses, factoring in risks like potential for fires, explosions or environmental damage from spills or leaks.
Estimated Pricing: $1.50 per $100 of insured value
Commercial Auto Insurance
Commercial auto insurance is an important coverage for petroleum and petroleum products merchant wholesalers due to their reliance on commercial vehicles. It provides liability protection and physical damage coverage for company-owned vehicles like delivery trucks and tankers used to transport petroleum products to customers. In addition to insuring delivery vehicles, commercial auto insurance is also needed to cover employee vehicles used for business purposes as well as non-owned autos driven for the company. coverage for on-site vehicles at bulk fuel storage facilities is also essential.
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Based on industry data and risk factors, the estimated average annual pricing for commercial auto insurance for businesses in the NAICS 4247 Petroleum and Petroleum Products Merchant Wholesalers industry is around $3,500-$5,000 per vehicle. Higher risks factors for this industry include transporting flammable fuels and the potential for hazardous material spillage. Premiums are also influenced by factors like number of vehicles, drivers’ experience, safety record, and security measures.
Estimated Pricing: $3,500-$5,000
Pollution Legal Liability Insurance
Pollution legal liability insurance provides an important financial protection for petroleum and petroleum products merchant wholesalers. As businesses that store, transport, and handle petroleum, they face inherent risks of accidental pollution from potential releases or leaks that can result in costly cleanups and lawsuits. It covers legal defense costs and liability claims if the company is sued for pollution. It also covers costs of cleaning up accidental pollution from operations, bodily injury and property damage from pollution incidents. This helps comply with state regulations requiring financial responsibility for pollution risks and protects the business assets from being depleted by pollution claims, providing peace of mind knowing pollution risks are financially covered.
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Based on typical pricing models for Pollution Legal Liability insurance and considering this industry deals with petroleum and petroleum products which can easily cause environmental pollution if not properly handled or in case of accidents, the estimated average annual pricing would be around $10,000-$15,000. The price is dependent on factors like the business’s annual revenue, number of fueling facilities or gas stations, past environmental incidents or violations, types of petroleum products handled, underground storage tank compliance, spill prevention plans and other risk factors.
Estimated Pricing: $10,000-$15,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical benefits to both employees and employers in hazardous industries like petroleum and petroleum products wholesale. It ensures employees receive support for job-related injuries while protecting employers from costly liability claims. The estimated average cost for workers’ compensation insurance for businesses in this industry is around $1.50 to $2.00 per $100 of payroll. Workers’ compensation is especially important in this industry due to the physically demanding nature of the work and risks of injuries from operating heavy machinery, loading/unloading equipment, working with hazardous materials, and more.
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Based on industry data, the estimated average pricing for Workers’ Compensation Insurance for businesses in the Petroleum and Petroleum Products Merchant Wholesalers industry (NAICS Code 4247) is around $1.50 to $2.00 per $100 of payroll. This pricing is derived from analyzing insurance rates charged to businesses in this industry based on their payroll amounts, types of operations, risk factors, safety records, and geographic locations.
Estimated Pricing: $1.50 – $2.00/per $100 of payroll
Umbrella Insurance
Umbrella insurance provides crucial liability protection for petroleum and petroleum products merchant wholesalers. It covers legal costs and incidents above primary insurance limits that are not covered in other policies. Umbrella insurance is especially important for this industry due to the risks involved in handling and transporting potentially hazardous fuel and petroleum products. It provides protection against expensive lawsuits that could result from incidents like slip-and-fall accidents, vehicle accidents, fuel spills, loading/unloading mishaps, and injuries at fuel pumps or storage tanks. The extra coverage from an umbrella policy helps ensure businesses in this industry can meet all legal and financial obligations if costly claims arise.
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Based on typical pricing considerations like annual sales revenue, number of employees, payroll, and risk exposure levels, the estimated average annual price for $1 million umbrella insurance coverage for businesses in the Petroleum and Petroleum Products Merchant Wholesalers industry with NAICS Code 4247 would be around $1,200. This price was derived from benchmarking sample rates provided by top insurance carriers for this industry and coverage level.
Estimated Pricing: $1,200
Conclusion
Carefully evaluating insurance needs and securing the right coverage tailored for this industry can give wholesalers peace of mind knowing their business, employees, assets and legal responsibilities are financially protected from unexpected events. Establishing risk management practices can also help lower insurance costs over time.