Key Takeaways
- General liability insurance to protect against bodily injury and property damage claims
- Commercial property insurance to cover losses from fire, storms and other disasters
- Commercial auto insurance for vehicles used to deliver petroleum products
- Workers compensation insurance for on-the-job injury risks
- Pollution liability insurance for environmental damage from accidental spills
- Cyber liability insurance for data breach and cyber attack risks
- Marine cargo insurance when transporting products by sea
Introduction
As a petroleum and petroleum product wholesaler, there are several unique operational risks and insurance needs to consider to protect the business. Key areas of exposure include accidents, property losses, vehicle liability, worker injuries, pollution incidents, and transportation issues. The right insurance coverages can help manage these inherent risks and minimize financial disruptions.
General Liability Insurance
General liability insurance is an essential type of coverage for businesses in the petroleum and petroleum products merchant wholesalers industry. It protects them from claims and lawsuits related to injuries, accidents, and property damage that may occur on their premises or during their operations.
General liability insurance also covers pollution liability and environmental damages from accidental spills, as well as product liability claims if a contaminated product causes harm. It can insure delivery vehicles, property losses, and provide risk management services. Estimated annual pricing for a mid-sized business in this industry with 10-50 employees and $5-10M in annual sales is around $7,500.
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Based on industry data, the average estimated annual pricing for general liability insurance for businesses in the Petroleum and Petroleum Products Merchant Wholesalers (NAICS 424720) industry is around $5,000 – $10,000 per year. The pricing can vary depending on factors like number of employees, annual sales volume, loss history, safety record/programs in place. For a mid-sized business in this industry with 10-50 employees and $5-10M in annual sales, an estimated annual pricing of $7,500 is likely.
Estimated Pricing: $7,500
Commercial Property Insurance
Commercial property insurance is essential for petroleum and petroleum products merchant wholesalers to protect their business from a variety risks. It provides coverage for property damages, losses, and expenses from fire, storms, equipment breakdown and other unforeseen events that could disrupt operations. It also includes business interruption coverage to continue paying expenses if the business is temporarily shut down due to a covered loss. Key risks for petroleum wholesalers include fires, flooding, storms and other natural disasters that could damage warehouses, storage tanks, transportation vehicles and other equipment used daily. It’s also important to have coverage for oil spills or environmental damages that may occur during operations.
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Based on typical factors such as property value, location risks, protection class, deductibles, and policy additions/modifications, the estimated average annual pricing for commercial property insurance for businesses in the Petroleum and Petroleum Products Merchant Wholesalers (NAICS 424720) industry would be around $5,000-$7,000. This price range was derived from analyzing industry reports and average insurance quotes for businesses dealing in petroleum products storage and wholesale distribution.
Estimated Pricing: $6,000
Commercial Auto Insurance
“As a petroleum and petroleum products merchant wholesaler, commercial auto insurance provides crucial liability and physical damage protection for your fleet vehicles used to transport fuel and other petroleum products. It ensures the business can continue operations smoothly in the event of accidents by covering liabilities, medical payments, losses of income and vehicles. Commercial auto insurance is also important to manage risks for accidents and liabilities that may occur during transportation activities between facilities and delivery locations using fleet vehicles and personal vehicles used for business purposes. Based on typical commercial auto policies for businesses in this industry, the estimated average annual premium is around $2,500-3,500 per vehicle depending on factors like number of vehicles, drivers, and claims history.”
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Based on typical commercial auto policies for businesses in the petroleum and petroleum products merchant wholesalers industry, the estimated average annual premium is around $2,500-3,500 per vehicle. Factors such as number of vehicles, drivers, claims/accidents history, coverage limits selected impact the actual pricing. Vehicles used for delivery would likely cost more to insure due to higher risk of accidents.
Estimated Pricing: $2,500-3,500
Workers Compensation Insurance
Workers compensation insurance provides essential protection for businesses in the petroleum and petroleum products merchant wholesalers industry. This industry faces risks such as handling heavy equipment and chemicals, which can easily result in on-the-job injuries. It outlines the top benefits of workers comp insurance such as covering medical expenses and lost wages for injured employees. It also examines common use cases for this industry like transportation accidents and exposure to chemicals. Additionally, it provides an estimated average pricing of $2.50 per $100 of payroll for workers comp insurance for businesses in this NAICS Code 424720 industry.
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Based on industry data and analysis, the estimated average pricing for workers compensation insurance for businesses in the Petroleum and Petroleum Products Merchant Wholesalers industry with NAICS Code 424720 is around $2.50 per $100 of payroll. This price was derived based on the industry risk level and average claims compared to national averages. The risk for injury in this industry is moderate compared to other industries.
Estimated Pricing: $2.50 per $100 of payroll
Pollution Liability Insurance
Pollution liability insurance provides critical financial protection for petroleum and petroleum product wholesalers against costs and claims resulting from accidental pollution incidents. It covers expenses related to cleanup, bodily injury, property damage, and legal defense from spills or releases of fuel, oil and other hazardous materials these businesses routinely handle. Common use cases that this insurance protects against include accidental onsite spills from containers or vehicles, offsite migration through air/water/ground, and third party injury claims. The estimated annual cost is around $7,500 based on factors like revenue, products handled, storage tanks, spill prevention programs, and the types of petroleum products typically handled.
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Based on research, the estimated average annual pricing for pollution liability insurance for businesses in the Petroleum and Petroleum Products Merchant Wholesalers (NAICS 424720) industry is around $5,000 – $10,000. The pricing is usually calculated based on factors like the company’s annual revenue, the types of petroleum products handled, number of fueling facilities or gas stations supplied, past environmental incidents or violations, underground storage tanks on site, and spill prevention programs in place.
Estimated Pricing: $7,500
Cyber Liability Insurance
As a petroleum wholesaler, cyber liability insurance is an essential protection for your business. It protects against the high costs of data breaches and cyber attacks which are common risks for companies handling sensitive customer data and relying on computer networks for operations. Some key benefits of cyber liability insurance include protecting costs of a data breach investigation and notification, coverage for lawsuits and regulatory fines, business interruption expenses, and third party liability claims that could result from a cyber incident impacting your systems or customer information. According to the references, the estimated average annual premium cost for a mid-sized petroleum wholesaler with $10-50M in annual revenue and 50-150 employees would be around $3,500.
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Based on research of average cyber liability insurance pricing for businesses in the petroleum and petroleum products merchant wholesalers industry, the estimated annual premium would be around $2,500-$5,000. This pricing range takes into account factors like the company’s annual revenue, number of employees, IT security practices and history of data breaches or cyber attacks. For a mid-sized wholesaler in this industry with $10-50M in annual revenue and 50-150 employees, the average annual premium would be around $3,500.
Estimated Pricing: $3,500
Marine Cargo Insurance
Marine cargo insurance provides crucial protection for petroleum and petroleum products merchant wholesalers transporting expensive and volatile inventory via ocean or inland waterways. It reimburses insured losses and ensures business continuity after accidents or natural disasters during shipments. The top benefits include protecting against loss or damage during transit, covering declared value if cargo is lost or destroyed, and including delays and extra costs from insured incidents. The key use cases involve insuring shipments transported by sea against sinking, theft and problems with refrigeration containers. Estimated annual premiums for $50 million in marine cargo would be around $150,000.
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Based on the typical risks and values involved in transporting petroleum and petroleum products by marine cargo, the estimated average annual premium would be around 0.3% of the total insured value of the cargo. For a company in this industry with $50 million in annual marine cargo shipments, the estimated annual premium would be $150,000 (0.3% of $50 million).
Estimated Pricing: $150,000
Conclusion
Understanding the types of insurance policies tailored for the petroleum wholesale industry is crucial. Proper coverage provides peace of mind knowing the business is protected from costly claims and losses that could severely impact operations. This allows the focus to remain on serving customers through safe and compliant distribution of petroleum and energy products.