Why Do Gas Stations with Convenience Stores Need Insurance
These days it seems like you can find several gas stations with convenience stores at one intersection. It makes sense since the average American household owns approximately two vehicles and most travel daily.
Owning a gas station with a convenience store also means you face serious risks every day. Risks that can cause you to shut your doors if you don’t have the right gas station insurance to protect your assets. Insurance is easy to find if you know what risks you face and the types of coverage will protect you.
The types of risks gas stations have include:
- Employee Theft & Crime: Gas station employees handle large amounts of sensitive data, cash and products during their shift. As much as you’d like to think they are trustworthy, many gas stations financially suffer when their employees steal these items or swipe customer credit card information.
- Burglary & Break-ins: About 8% of robberies occur at gas stations and convenience stores. When they occur, you not only lose your cash on-hand, you also risk emotional and physical injuries to your employees.
- Employee Injury: Convenience stores receive weekly shipments that need to be stocked. If employees don’t properly lift the boxes, they can injure themselves and hold you responsible.
- Property Damage: Gas stations have more property to consider than just the building. You also have gas pumps, tanks, and in some cases car washes that can end up damaged by reckless drivers or vandals.
- Slip and Falls: One of the most common risks is when patrons fall due to uneven pavement, wet floors, misplaced rugs, or even poor lighting.
What Types of Coverage Do You Need?
There are several types of insurance for gas stations that you may need to purchase. All gas stations benefit from general liability and commercial property insurance, while some may also need professional liability if they offer financial services like money orders or wire transfers.
- General Liability: Covers medical expenses and lawsuits that stem from patrons injuring themselves (or their valuables) while at your property.
- Crime: Protects you from losses and expenses that occur when employees or outsiders steal money or other assets.
- Commercial Property: Covers damage or loss of your building and contents resulting from a covered peril. Some gas station insurance coverages, such as a Business Owners Policy, can also include business interruption insurance to cover expenses from having to close for a temporary period.
- Worker’s Compensation: Pays medical expenses and lost wages for employees when they are injured while working. Most states require businesses carry this insurance when they have at least three employees (though in some states the minimum is lower).
How Much Does Gas Station Insurance Cost?
Gas station and convenience store insurance prices vary depending on the carrier and your unique risks. If you’ve had prior claims, especially worker’s compensation, you can see significantly higher prices than a business with a clean claims history. Other factors include if you are open 24-hours, have security systems in place, and if you are a startup. The good news is you can request a quote below tailored to your gas station to review your options.