Key Takeaways
- General liability insurance protects against lawsuits from customer injuries on your property.
- Commercial property insurance repairs or replaces buildings, equipment and inventory after damage.
- Commercial auto insurance covers accidents involving company vehicles used for delivery.
- Workers compensation ensures proper medical care and compensation for employee injuries.
- Commercial umbrella provides additional liability protection above your primary insurance limits.
- Commercial cyber liability covers costs and lawsuits resulting from a data breach.
- Commercial crime insurance reimburses losses from employee theft, robbery, and other crimes.
Introduction
As a gas station owner with NAICS code 457120, there are several essential business insurance policies to consider to safeguard your operations. This article explores the top policies gas station owners should prioritize based on industry risks and regulations.
General Liability Insurance
General liability insurance is an important coverage for gas station businesses. It helps protect the business from financial losses due to accidents and injuries that may occur on the premises or as a result of operations. Some key benefits of general liability insurance for gas stations include covering legal costs and damages from customer injuries, vehicle accidents on the property, faulty equipment, and slip-and-fall accidents. It also provides protection for incidents involving fuel pumps, air compressors, contaminated food/drinks, hazardous material spills, and assault/robbery. Common use cases it covers are slip-and-fall accidents, customer/employee injuries from vehicle collisions, property damage from vehicle collisions/fuel incidents, injuries from unsafe equipment, and injuries from assault/robbery incidents. The estimated annual pricing ranged between $5,000-$8,000 based on factors like payroll, employees, property values, and claims history.
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Based on industry data and common factors like payroll, number of employees, property values, claims history etc, the estimated average annual pricing for general liability insurance for businesses in the Other Gasoline Stations with NAICS Code 457120 industry is around $5,000-$8,000. Pricing can vary depending on individual business risk factors but this price range was derived from historical industry averages.
Estimated Pricing: $5,000-$8,000
Commercial Property Insurance
Commercial property insurance provides essential protection for businesses in the other gasoline stations industry. It covers repairs or replacement costs if a station’s property like buildings, equipment, or inventory is damaged by risks such as fire, storms, or equipment breakdown. Some key benefits of commercial property insurance for other gasoline stations include liability protection for customer injuries, business income coverage if the property is unusable after a loss, and ordinance or law coverage to pay for increased building code costs after damage. Pricing for commercial property insurance for other gasoline stations typically ranges from $10,000 to $20,000 annually depending on insured property values.
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Based on industry reports, businesses in the NAICS Code 457120 – Other Gasoline Stations industry typically pay between $2 to $4 per $100 of insured property value for commercial property insurance. Assuming the average property value insured is around $500,000, the estimated annual premium would be around $10,000 to $20,000.
Estimated Pricing: $10,000 to $20,000
Commercial Auto Insurance
Commercial auto insurance is an essential coverage for businesses in the other gasoline stations industry to protect themselves from financial liability in the event of accidents involving company vehicles. It provides coverage for fleet vehicles used to transport fuel and supplies between storage facilities and gas stations, as well as personal vehicles operated by employees for business purposes. This helps protect the business financially against lawsuits, repair expenses, and loss of income that could result from vehicular accidents during business operations.
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Based on national average pricing data for businesses in the NAICS 457120 industry (Other Gasoline Stations), the estimated average annual pricing for commercial auto insurance is around $2,500 per vehicle. This estimate takes into account factors like number of vehicles, driver record, location, garageing locations, and average claim costs for this industry. The risks of operating gas station vehicles on public roads are factored into the pricing.
Estimated Pricing: $2,500
Workers Compensation Insurance
Workers compensation insurance provides critical protections for both employees and employers in the gasoline stations industry. It ensures medical care and lost wages are covered for employees if injuries occur on the job, while also protecting businesses from liability lawsuits. The top benefits of this insurance for gasoline stations include covering costs for common injuries like slips, trips, and falls around gas pumps. It also covers risks from using heavy equipment, repetitive stresses, vehicle accidents during deliveries, and injuries from robberies or assaults on the premises. On average, gasoline stations can expect to pay around $2.50 per $100 of payroll for workers compensation insurance.
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Based on national averages, the estimated average pricing for workers compensation insurance for businesses in the Other Gasoline Stations industry with NAICS code 457120 is around $2.50 per $100 of payroll. This rate is derived from insurance company data and risk analyses that have shown Other Gasoline Stations to have a total case rate of around 2.4 cases per 100 full time workers per year, with an average claim cost of around $10,000. Using this data and industry payroll numbers, the estimated average price was calculated.
Estimated Pricing: $2.50/100 of payroll
Commercial Umbrella Insurance
Commercial umbrella insurance provides extra liability protection above standard business insurance limits for businesses in the other gasoline stations industry. It helps protect against expensive lawsuits that can jeopardize financial stability and personal assets. Some key benefits of commercial umbrella insurance for gasoline station owners include additional coverage for risks of on-site accidents, slip and falls, vehicle collisions, equipment issues, and liability claims exceeding primary policy limits. It also insures against pollution liability from fuel storage tanks and fuel dispensers. Pricing is usually around $2 per $1,000 of coverage depending on business factors like sales volume, number of employees, loss history, and other characteristics.
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Based on industry data, businesses in the NAICS 457120 – Other Gasoline Stations industry typically pay between $1.50 to $2.50 per $1,000 of commercial umbrella insurance coverage. The average pricing is around $2 per $1,000. Pricing is usually determined based on factors like sales volume, number of employees, loss history, and other business characteristics. For a business with $5 million in annual sales and 20 employees, the estimated annual cost for a $1 million commercial umbrella policy would be around $2,000 ($2 per $1,000 x $1,000,000 coverage amount).
Estimated Pricing: $2 per $1,000
Commercial Cyber Liability Insurance
As a gasoline station business that handles customers’ private information, commercial cyber liability insurance provides important protection from the financial risks of data breaches or cyber incidents. It covers various costs of responding to incidents and resulting legal claims in order to help minimize harm to customers. Commercial cyber liability insurance also protects the business from lawsuits, regulatory fines and penalties, network security incidents, reputational damage, and lost business income following a breach. As gasoline station retailers increasingly utilize digital payment systems and collect personal customer data, cyber insurance can help protect these businesses from the growing risks.
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Based on average revenue per location for other gasoline stations of around $2 million annually, and typical cyber insurance pricing models, the estimated annual premium would be around $5,000. Premium pricing is usually based on factors like annual revenue, number of customer records that could potentially be compromised, data security practices, and claims history. For a typical other gasoline station, $5,000 would be a reasonable ballpark estimate given their moderate revenue and customer data exposure.
Estimated Pricing: $5,000
Commercial Crime Insurance
Commercial crime insurance provides important protection for businesses in the other gasoline stations industry. It covers losses from internal and external crimes like theft, employee dishonesty, robbery and other risks these businesses often face when handling large amounts of cash daily. Some key benefits of commercial crime insurance for gas stations include reimbursement for investigation and audit costs after a loss, legal costs protection in the event of criminal investigations, and coverage for mysterious disappearances of money or securities. Common risks gas stations face that can be covered include employee theft, customer theft like drive-offs, third party theft from burglaries or robberies, property damage from armed robberies, and theft of inventory stored on site. The estimated average annual premium for commercial crime insurance for a typical gas station is around $2,000 based on factors like business size, revenue, security measures, location and claims history.
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Based on research on average commercial crime insurance pricing for gas station businesses, the estimated annual premium would be around $2,000. This pricing is calculated based on factors such as the business size, average revenue, past claims experience (if any), risk level related to theft and robbery, security measures in place, and location. For a typical standalone gas station business under NAICS code 457120, $2,000 annual premium seems like a reasonable estimate.
Estimated Pricing: $2,000
Conclusion
In summary, general liability, commercial property, commercial auto, workers compensation, commercial umbrella, commercial cyber liability and commercial crime insurance provide comprehensive protection for the unique exposures gas stations face. Maintaining proper coverage helps protect your business, customers, employees and assets from financial risks.