Gasoline stations are essential to modern society, serving as critical service hubs beyond fuel distribution. Whether a large chain or an independent station, these facilities act as critical community service points. Many gasoline stations now offer expanded services such as automotive repairs, vehicle inspections, car wash services, convenience stores and other offerings. Moreover, gasoline stations are typically open for extended hours to accommodate consumers’ varying work schedules and truck drivers’ long hours on the road.
However, the broad services offered by gasoline stations and the high number of daily visitors leave them vulnerable to several risks. Threats include property concerns, employee safety, liability exposures and environmental and pollution perils. As such, it’s crucial they protect both themselves and their operations against possible losses by securing proper insurance. Keep reading for an outline of the gasoline stations’ common exposures and associated coverage considerations.
Common Exposures
Here’s a breakdown of key exposures gasoline stations may face in their operations:
Property—Gasoline stations contain multiple property assets, including fuel pumps, buildings, underground storage tanks and signage. Those offering additional services, like convenience stores and auto repairs, may have various equipment (e.g., servicing equipment and engine diagnostic apparatus) and tools (e.g., drills, wrenches and hydraulic lifts), as well as inventory, built-in shelving and office furniture. Unfortunately, unexpected events—including theft, fires, natural disasters and fuel explosions—can result in this property being damaged, stolen or destroyed, potentially leaving gasoline stations with significant recovery expenses. The risk of fire is particularly pertinent in gasoline stations due to the large quantities of flammable substances (e.g., gasoline and motor oil) on-site. Self-serve stations may have heightened exposures compared to full-service stations because customers may not follow safe fuel-dispensing procedures when pumping gas.
Environmental and pollution risk—Above- or underground gasoline storage tanks and kerosene or propane gas can be dangerous and toxic to people and the environment. Fuel could leak into the nearby groundwater and soil, posing a significant environmental threat. Furthermore, car wash wastewater and contaminated stormwater runoff from oil and gas operations compound ecological concerns and can be hazardous to neighboring properties. Spills can result in costly cleanup efforts and legal claims for property damage or personal injury.
Crime—Even when a gasoline station takes precautions (e.g., installing surveillance equipment), crime is a pervasive risk. Robberies may be likely due to large amounts of cash on hand and easy on- and off-access from main roads, allowing for quick getaways. Extended opening hours may leave gasoline attendants vulnerable to crime at night. Card skimming—where a criminal installs a device on a gasoline station pump or ATM to steal card information—and employee theft are additional threats.
Occupational safety—Common occupational ailments among employees working at gasoline stations include musculoskeletal disorders from standing for long periods or lifting heavy stock or equipment; skin and eye irritation, burns and lung disorders stemming from contact with fuels and other hazardous chemicals; and bodily trauma due to incidents with robbers, aggressive customers or moving vehicles. If employees get injured or become ill on the job, gasoline stations could be held responsible for these workers’ subsequent hospital bills, treatment expenses and lost wages.
General liability—Gasoline stations typically have many daily visitors, which could lead to frequent liability claims. Contaminated gasoline could damage customer or vendor vehicles. Customers could slip on an unmarked fuel spillage, trip in improperly arranged aisles, or sustain burns from fuel spills or electrical shocks from malfunctioning equipment. If customers, vendors or other individuals experience injuries or damages due to such incidents, gasoline stations could be held liable for the associated losses.
Business interruption—Gasoline stations may need to temporarily close due to several unforeseen events, such as natural disasters (e.g., flooding), equipment failures or fuel supply disruptions. For example, a blizzard could leave trucks unable to transport gasoline from terminals to gasoline stations, causing shortages. Fuel supply disruptions may be more likely for gasoline stations contractually obliged to sell just one brand of gasoline. Regardless of the source of disruption, business interruptions can result in lost revenue, repair costs, reputational damage, and other related expenses.
Cyber—Gasoline stations often use digital systems and software to store customers’ personal and financial data, including names, addresses and bank details, for loyalty programs. Cybercriminals could target such information, leaving gasoline stations vulnerable to data breaches. Threat actors may also target financial data stored on internet-based credit card point-of-sale system memories. Following such events, gasoline stations may encounter several costs related to notifying impacted individuals, recovering lost or damaged data, and handling associated legal ramifications and reputational losses.
Coverage Considerations
To help address their exposures and stay protected from potential losses, gasoline stations should consider the following forms of coverage:
- General liability insurance—This coverage can provide financial assistance if a gasoline station is legally or financially liable for injuries, harm or damage to another party or their property.
- Commercial property insurance—This type of insurance can help pay the resulting repair or replacement costs if a gasoline station’s property—such as buildings, gas pumps, inventory and tools—gets damaged, stolen or destroyed due to a covered event.
- Environmental liability insurance—This coverage can help pay for the cleanup costs and legal defense fees associated with environmental liabilities, such as the accidental release of hazardous substances.
- Business interruption insurance—Such coverage can help compensate a gasoline station’s typical operating costs (e.g., business income, commercial mortgage and tax payments, lease and loan expenses, and employee payroll) if they are forced to temporarily close their doors due to direct physical damage caused by a covered event.
- Workers’ compensation insurance—If a gasoline station’s employees get injured or become ill in the course of their duties, this coverage can help pay these workers’ medical bills, rehabilitation expenses and lost wages.
- Commercial crime insurance—Also known as fidelity insurance, this coverage can reimburse a gasoline station for losses caused by employee dishonesty and other business-related crimes.
- Cyber liability insurance—Such coverage can assist with certain first- and third-party expenses that may result from a gasoline station experiencing a data breach, ransomware attack or other cyber incident.
Depending on the specific circumstances of gasoline stations, liquor liability insurance, employment practices liability insurance and commercial umbrella coverage may also be beneficial.
Contact us today for additional risk management guidance and insurance solutions.
This document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. © 2025 Zywave, Inc. All rights reserved.