Top Business Insurance Options for Gas Stations with Convenience Stores (NAICS 457110)

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Learn about the key insurances gasoline stations and convenience stores should consider including general liability, commercial property, auto, workers' compensation, commercial inland marine and cyber insurance.

Key Takeaways

  • Consider general liability insurance to protect against slip and fall claims and product liability.
  • Obtain commercial property insurance to cover damage to buildings, equipment and loss of income from events like fires or storms.
  • Secure commercial auto insurance for delivery vehicles and liability coverage for staff driving for work.
  • Get workers’ compensation insurance to cover medical costs and lost wages for employee injuries legally required in most states.
  • Add an umbrella policy for liability claims exceeding primary insurance limits.
  • Purchase commercial inland marine insurance for movable property risks like inventory in transit.
  • Acquire cyber insurance to help cover costs of hacking incidents like ransomware and data breaches.

Introduction

As a business operating gasoline stations with convenience stores, there are many insurance needs to consider. Due to risks from fuel storage and sales, vehicle traffic on the premises, and handling of customer information, it’s crucial to evaluate various commercial coverage options. Key policies to review include general liability, commercial property, commercial auto, workers’ compensation, umbrella, commercial inland marine, and cyber insurance. Proper insurance planning is important to protect assets, operations and employees from financial losses due to accidents and other insurable events.

General Liability Insurance

General liability insurance provides important protection for businesses in the gasoline station and convenience store industry. It can help cover costs from a variety of claims relating to customer injuries, accidents, and product sales that are common risks for properties that sell fuel. Some key benefits of general liability insurance for gas stations/convenience stores include protecting the business from costly legal claims and lawsuits related to risks like vehicle or slip and fall accidents on the premises. It also covers liability if unsafe products sold to customers lead to injuries. Maintaining adequate general liability limits is especially critical in this industry due to risks from fuel storage and sales.

Category List
Benefits
  • Protects against claims of bodily injury or property damage from customers on your premises
  • Covers legal costs if you’re sued for negligence that results in injury or property damage
  • Protects against claims of products liability if a product you sell causes harm
  • Covers liability claims from the storage and dispensing of fuel
Use Cases
  • Covers bodily injury and property damage claims from slip and falls or other accidents on the premises
  • Protects from lawsuits if a customer gets into an accident after leaving the store and claims the store negligently sold them something like alcohol that contributed to the accident
  • Covers liability claims if a customer’s vehicle is damaged while at the gas pumps, such as from fire or explosions
  • Covers liability if a customer ingests or is otherwise exposed to something dangerous purchased at the convenience store

Based on typical general liability insurance rates and risk factors for gasoline stations with convenience stores, the estimated average annual pricing would be around $5,000 – $7,000. Rates are usually determined based on factors like number of fueling positions, annual gasoline sales volume, presence of auto repair services, and loss history. Higher volume stores or those with on-site auto repair would be at the higher end of the range.

Estimated Pricing: $5,000 – $7,000

Commercial Property Insurance

Commercial property insurance provides crucial financial protection for gasoline station and convenience store businesses. It insures their physical property, inventory, protects income if the location becomes unusable due to a covered event like fire or storm, and covers key risks these types of small businesses face like equipment breakdown, theft, and liability if a customer is injured on-site – which is essential for continued operations and meeting financial obligations after a loss.

Category List
Benefits
  • Protects against damages from fire, weather events like hurricanes or hail storms
  • Covers loss of income if the property is unusable due to a covered event like a fire or flood
  • Pays for repairs or rebuilding costs after damage from events like theft or vandalism
  • Provides liability coverage if a customer is injured on your property
  • Covers equipment breakdown or mechanical failure of systems like cooling, heating and gas pumps
  • Insures the buildings, land, inventory and equipment against risks
  • Covers damage to stock like gasoline, food items and convenience store products
Use Cases
  • Protection against damage/destruction to buildings and structures
  • Protection against equipment breakdown
  • Protection against theft or robbery of stock, equipment, or cash

Based on industry data, the average annual commercial property insurance pricing for businesses in the Gasoline Stations with Convenience Stores industry (NAICS Code: 457110) is around $3.50 per $100 of insured property value. This pricing is derived from loss history data showing the average risk level for property damage, theft, and other insurable issues within this industry. Factors like business location, safety measures, security systems, and claims history can influence the final quoted pricing.

Estimated Pricing: $3.50 per $100 of insured property value

Commercial Auto Insurance

Commercial auto insurance provides critical liability and physical damage protection for business-related vehicles used by gasoline stations with convenience stores and their employees. It covers risks associated with delivery vehicles, employees’ personal vehicles used for work, fuel transport vehicles, and liability for accidents on company property. Additionally, it offers customized coverage, and non-owned and hired auto liability helps manage risks from rental or borrowed vehicles.

Category List
Benefits
  • Liability protection in case an accident occurs involving a company vehicle
  • Physical damage coverage to repair or replace a vehicle if it’s in an accident or damaged
  • Medical payments coverage to pay for injuries to others in an accident regardless of fault
  • Uninsured/underinsured motorist coverage to protect from losses caused by drivers without insurance
  • Coverage for hired and non-owned autos used for business purposes
  • Protection from losses due to cargo damage or theft for vehicles transporting goods
  • Customized coverage options to meet specific business needs
Use Cases
  • Delivery vehicles transporting inventory and supplies between stores and warehouses
  • Employees using personal vehicles for business activities like bank deposits, paperwork deliveries
  • Liability coverage for accidents involving store vehicles on company property
  • Coverage for gasoline tankers and trucks transporting fuel to gas stations
  • Non-owned and hired auto liability for risks associated with rental/borrowed vehicles

Based on industry data, the average commercial auto insurance pricing for businesses in the gasoline stations with convenience stores industry (NAICS Code 457110) is around $2,500 per year. This price is derived from analyzing insurance rates charged to similar businesses that operate fuel delivery trucks and other commercial vehicles on their premises to support daily operations. Factors like number of vehicles, driver records, liability limits, deductibles selected all influence the final premium amount.

Estimated Pricing: $2,500

Workers’ Compensation Insurance

Workers’ compensation insurance provides coverage for employee medical expenses and lost wages due to workplace injuries or illnesses. It protects both employees and employers by ensuring proper care is received without lengthy litigation.

Workers’ compensation insurance is especially important for businesses in the gasoline stations with convenience stores industry due to the various slip, trip, and fall hazards around gas pumps and in stores. Employees also face risks from handling heavy products, operating kitchen equipment, working around moving vehicles, and performing maintenance tasks. This type of insurance demonstrates a commitment to employee well-being and safety. Having workers’ compensation coverage is required by law in most states and can help businesses qualify for premium discounts by preventing injuries through proper safety procedures.

Category List
Benefits
  • Covers medical expenses and lost wages for employees injured on the job
  • Protects your business from expensive lawsuits if an employee is injured
  • Required by law in most states to have workers’ compensation insurance
  • Reduces absences and turnover from workplace injuries
  • Improves employee morale and engagement
  • Can receive discounts on premiums for preventing injuries
Use Cases
  • Slips and falls in the store or on wet surfaces around gas pumps
  • Injuries from lifting heavy items such as cases of soda, water, snacks etc.
  • Cuts and accidents from handling knives, glass or other equipment while working in the deli/prepared food section
  • Burns from kitchen equipment like grills or fryers for food preparation
  • Vehicle or traffic accidents in the parking lot from customer or delivery vehicles
  • Injuries while performing maintenance on gas pumps, underground storage tanks or convenience store equipment

Based on industry data and average claims, the estimated average annual pricing for workers’ compensation insurance for businesses classified under NAICS Code 457110 (Gasoline Stations with Convenience Stores) is around $2.50 per $100 of payroll. This rate is calculated based on the risk and common injury types for this industry, which include slips/trips/falls as well as vehicle/equipment related incidents that can occur on gas station properties.

Estimated Pricing: $2.50/$100 of payroll

Umbrella Insurance

Umbrella insurance provides additional liability coverage above a business’s standard insurance policies. It offers protection for gasoline station and convenience store owners against lawsuits with liability claims that exceed primary policy limits or incidents not covered by other policies.
Some key benefits of umbrella insurance for gasoline stations with convenience stores include protecting against catastrophic liability claims, providing coverage for legal costs, and potentially lowering overall commercial insurance premiums. Common use cases where umbrella insurance provides valuable protection include lawsuits related to business operations, incidents involving employee personal vehicles for work purposes, and risks not covered by other business policies like property maintenance activities. Estimated pricing for $1 million in umbrella coverage for these types of businesses is between $600-800 annually based on average industry risk level and business size factors.

Category List
Benefits
  • Protection against lawsuits with liability claims that exceed your primary insurance limits
  • Additional liability protection above your commercial auto, general liability and property insurance limits
  • Peace of mind knowing you have extra liability coverage for your business in case of catastrophic loss
  • Coverage for legal costs like lawyer fees and court costs related to liability claims
  • Potential discounts on your overall commercial insurance premiums by adding umbrella insurance
  • Coverage for incidents that may not be covered by your primary policies
Use Cases
  • To provide additional liability coverage above the limits of the primary general liability and auto liability policies
  • To protect the business owner’s personal assets from a lawsuit related to their business operations
  • To cover incidents that may not be covered under the primary general liability policy such as pollution liability
  • To cover employees operating their personal vehicles for business purposes
  • To provide coverage for risks not included in other business insurance policies like snow removal or playground equipment on the property

Based on typical umbrella insurance pricing models, factors such as claims history, number of employees, annual sales/revenue, and risk level of the industry are considered. For businesses in the gasoline stations with convenience stores industry (NAICS Code: 457110), the estimated annual premium for $1M umbrella insurance coverage would be around $600-$800. This pricing is derived from the industry’s moderate risk level as well as average number of employees (5-10) and annual revenue ($2-5M) for small convenience stores attached to gas stations.

Estimated Pricing: $600-$800

Commercial Inland Marine Insurance

“Commercial inland marine insurance provides important protection for the movable property and equipment used in gasoline station and convenience store operations. It covers assets both on the business premises and when in transit or temporarily stored off-site. This type of insurance is especially useful for gas stations and convenience stores as it protects inventory, money, electronics and other valuable equipment from damages regardless of location.”

Category List
Benefits
  • Covers losses from fire, theft, wind, and other hazards for equipment used off-premises
  • Covers equipment while in transit or temporary storage
  • Reimburses replacement costs for damaged or stolen equipment like ATMs, cash registers, security systems
  • Covers business losses due to equipment downtime after an insurable event
  • Covers tools, equipment, and supplies used at job sites or customer locations
  • Protects mobile equipment like delivery trucks and tanks
  • Covers leased or rented property used in business operations
Use Cases
  • Protection for merchandise in inventory and on premises
  • Coverage for money and securities on premises or in transit
  • Coverage for business personal property like computers and equipment
  • Protection for equipment in service or away from premises
  • Coverage for signage like signs, awnings or outdoor displays

Based on typical risks and coverage amounts for businesses in the NAICS 457110 industry, the estimated average annual pricing for commercial inland marine insurance would be around $2,500. This takes into account factors like average inventory values, number of locations, prior claims history, security measures in place, and risk management practices. The pricing was derived from industry reports and insurance agent experience working with similar gas station/convenience store clients.

Estimated Pricing: $2,500

Cyber Insurance

Cyber insurance is an important tool for gasoline stations with convenience stores to help protect their business from the financial risks of cyber attacks and data breaches. As businesses that process credit card payments and handle customer data, they are high targets for hackers and cyber criminals. Cyber insurance can help cover major costs like data breach notification, credit monitoring, forensic investigations, and network repairs if an incident occurs. It also protects the business from third party lawsuits, regulatory fines, and lost income during downtime from attacks. By examining the top benefits and use cases outlined in the REFERENCES section, cyber insurance provides gasoline stations and convenience stores with much-needed financial protection and risk transfer options.

Category List
Benefits
  • Covers costs of data breaches, ransomware, and cyber extortion including notification costs, credit monitoring, forensic investigations, legal costs
  • Covers network security liability and privacy liability if a data breach exposes sensitive customer information
  • Covers business interruption costs from a cyber attack like downtime, lost income, extra expenses to maintain operations during an attack
  • Covers regulatory fines and penalties from privacy regulations like GDPR, CCPA
  • Covers liability if a third party sues your business for a data breach on your watch
  • Provides access to legal advisors, public relations experts, and IT forensics services in the event of an attack
  • Reimburses costs of restoring your network, files, and systems to normal operation after an attack
  • Covers expenses to hire a cyber security firm to help prevent future attacks and improve overall security
  • Provides access to risk management tools and training to help your employees spot phishing attempts and social engineering attacks
Use Cases
  • Ransomware Attack and Ransom Payment
  • Data Breach with Stolen Credit Card Numbers
  • Malware Infection and System Outage
  • Phishing Scam Targeting Employees
  • Third Party Vendor Security Incident
  • Loss of Business Income Due to a Cyber Attack
  • Legal Expenses and Fines from a Regulatory Investigation

Based on analysis of typical cyber insurance pricing for small to medium sized businesses in the convenience store industry, the average annual premium for cyber insurance would be around $1,500. This pricing is derived based on factors such as average annual revenue, number of payment processing transactions, data security practices, and risk management protocols of businesses in this industry segment.

Estimated Pricing: $1,500

Conclusion

By understanding the top insurance options and evaluating the specific benefits and use cases outlined for each policy type, gasoline station and convenience store owners can make informed choices to properly manage risks and protect their businesses financially. With significant exposures from vehicle fueling operations to inventory risks and cyber threats, a comprehensive commercial insurance portfolio is recommended best practice for businesses in this NAICS 457110 industry segment.

Frequently Asked Questions

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