Running a gas station takes a lot of work. You sell fuel, manage a store, keep equipment running, and make sure your workers and customers stay safe. With so much going on, you need insurance that protects your business from many kinds of risks.
The right insurance can help pay for accidents, legal problems, property damage, and more. But if your coverage is old or incomplete, it may not help when you need it most.
In this article, you’ll learn five clear signs that your gas station may need better insurance. If any of them sound familiar, it’s a good idea to speak with someone who understands gas station risks.
Key Takeaways
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Outdated Policies Can Leave You Unprotected
If you haven’t reviewed your gas station’s insurance policy in over a year, it likely doesn’t reflect changes in your equipment, staffing, or operations—putting you at risk for uncovered claims.
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General Liability Alone Isn’t Enough
Gas stations face unique exposures, including fuel spills, tank failures, equipment damage, and more. Proper coverage should include pollution liability, property insurance, business interruption, and underground storage tank protection.
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Increasing Employee Claims Signal Coverage Gaps
Rising worker injuries or legal complaints may mean your policy lacks key protections like Workers’ Comp, EPLI (Employment Practices Liability Insurance), or crime coverage for theft or fraud.
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Leased Equipment and Property Have Special Insurance Needs
If you lease any part of your station—like pumps, tanks, or the building—your insurance must meet specific contract terms, including adding landlords or lessors as “additional insured.”
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Business Growth Requires Insurance Updates
Expanding services, selling alcohol or tobacco, opening new locations, or adding delivery services all introduce new risks that must be reflected in your coverage.
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The Right Insurance Advisor Makes a Difference
Working with a provider like Kelstar Insurance—who understands the gas station industry—ensures you get tailored, competitive coverage that meets legal requirements and protects your bottom line.
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Being Underinsured Can Be More Costly Than Being Well-Prepared
One unexpected claim can result in massive out-of-pocket expenses or even force a business to shut down. Keeping coverage current helps prevent financial losses and downtime.
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Kelstar Insurance Can Help You Get It Right
With access to over 50 commercial carriers and a focus on gas station risks, Kelstar offers expert reviews and custom policy solutions across Wyoming, Colorado, Illinois, and beyond.
1. You Haven’t Reviewed Your Insurance in Over a Year
Has it been more than a year since you looked at your insurance policy? If so, it might not match your business anymore. Gas stations change all the time—maybe you’ve added services, equipment, or hired more staff. These updates may not be included in your current insurance.
Some changes that may affect your coverage:
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New fuel pumps or tanks
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A car wash or EV charging station
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24-hour operation
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New employees or job roles
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Updated signage or buildings
Example: You install a self-service car wash. A pipe bursts and floods the parking lot, damaging a customer’s car. When you file a claim, it’s denied because the car wash wasn’t included in your policy.
Even smaller updates—like new refrigerators or cash registers—can lead to problems if they’re not listed in your insurance plan.
What to do: Review your insurance once a year or whenever your business changes. This helps keep your coverage up to date and ready to help when you need it.
2. You Only Have General Liability Insurance
General liability insurance is important. It protects your business if someone gets hurt at your gas station or if you damage someone else’s property. But for gas stations, that’s only part of the picture.
You may also need:
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Pollution coverage – to help pay for fuel spills or environmental damage
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Underground storage tank insurance – for leaks in buried tanks
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Property insurance – to protect your building, pumps, equipment, and inventory
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Business interruption insurance – in case you have to close temporarily
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Product liability insurance – for items you sell in the store
Example: A fuel leak spreads underground and reaches a nearby yard. The cleanup costs over $100,000. If your insurance doesn’t include pollution coverage, you’ll have to pay all of it yourself.
Example: Your store’s refrigerator breaks down overnight, ruining thousands of dollars’ worth of drinks and food. If your policy doesn’t include property or spoilage coverage, you’ll be stuck with the loss.
What to do: Work with an insurance advisor who knows how gas stations operate. They can help build a policy that covers the real risks you face every day.
3. Employee Issues Are Becoming More Common
If you’re seeing more worker injuries, complaints, or legal problems, your insurance may not be keeping up with your staffing needs.
Gas station employees face several risks:
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Handling fuel and other dangerous materials
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Working late hours
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Dealing with robberies or aggressive customers
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Doing physical tasks like lifting or cleaning
Most states require Workers’ Compensation insurance, but you might also need:
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Employment Practices Liability Insurance (EPLI) – for lawsuits involving discrimination, wrongful firing, or harassment
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Crime coverage – for employee theft or fraud
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Assault and battery coverage – for physical altercations on-site
Example: An employee sues for harassment after reporting a supervisor. Without EPLI, your business must pay legal fees and possibly a settlement out of pocket.
Example: A cashier is hurt during a robbery. Workers’ Comp helps with medical bills, but the store suffers from lost income and added stress on the team.
If your business operates in more than one state—like Wyoming, Colorado, or Illinois—your insurance must follow each state’s rules. Coverage that works in one location may not meet the requirements in another.
What to do: Take a look at any recent employee claims. If the number is going up, or if legal issues are showing up, it's time to adjust your coverage.
4. You Lease Your Property or Equipment
Many gas station owners rent their buildings, pumps, or equipment. If that’s true for you, your lease likely requires certain types of insurance—even if you don’t own the property.
Some leases require:
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Adding the landlord or equipment owner to your insurance policy
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Specific types or amounts of coverage
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Proof of insurance sent each year
Example: A windstorm damages a canopy you rent from the property owner. The landlord wants your insurance to pay for repairs, but they’re not listed on your policy. The claim is denied, and you’re responsible for the full cost—possibly violating the lease.
Example: A fire in your store damages a leased ice machine. Your policy only covers items you own, so you’re stuck paying to replace the machine yourself.
What to do: Go through your lease agreements and check that your insurance matches every requirement. A missing detail—like leaving the landlord off the policy—can create big problems later.
5. You’ve Grown or Changed Your Business
If your business has grown in the past year, your insurance should grow with it. Adding new services or locations often means new risks—and your old policy might not cover them.
Some examples of business changes:
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Selling alcohol or tobacco
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Offering food or installing kitchen equipment
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Starting fuel delivery or a mobile service
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Opening a second location
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Using customer loyalty or fleet card programs
Example: You start selling beer. A minor uses a fake ID, buys alcohol, and causes a crash. Your gas station is sued—but your policy doesn’t include liquor liability, so you're left to handle the legal costs yourself.
Example: You open a second location in another city. A theft happens at the new site, but the address wasn’t added to your insurance. The claim is denied.
What to do: Any time your business grows or adds something new, check with your insurance provider. You may need to increase coverage limits or add new types of protection.
Why Good Insurance Matters
Gas stations face more risk than many other types of businesses. You deal with flammable fuel, expensive equipment, cash handling, late-night hours, and the safety of both workers and customers.
Without the right insurance, just one accident or lawsuit could put your business at risk. That means lost income, a damaged reputation, or even having to close your doors.
Here’s what strong insurance can help with:
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Fuel leaks or tank failures
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Fire or weather damage
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Robbery or theft
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Lawsuits from customers or employees
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Power outages and spoilage
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Employee injuries
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Business closure due to repairs
Many business owners think their current policy is “good enough”—until something happens. By then, it’s too late.
Why Work With Kelstar Insurance
At Kelstar Insurance, we help gas station owners protect what they’ve built. We understand the risks involved in running a fuel station and convenience store. Our team works with over 50 insurance companies to find plans that fit your business—without pushing coverage you don’t need.
We help businesses across Wyoming, Colorado, and Illinois. Whether you operate one location or several, we’re here to make sure your policy is strong, simple, and affordable.
Here’s what we offer:
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A free review of your current insurance
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Help fixing gaps or outdated coverage
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Clear, easy-to-understand advice
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Custom plans based on your equipment, location, and services
We’ll explain everything clearly so you know what you’re getting—and why it matters.
Conclusion
If any of the five signs above sound familiar, it’s time to take a closer look at your insurance. Don’t wait until there’s a major accident or legal issue. The best time to update your coverage is before something goes wrong.
Here’s what you can do now:
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Look at your current policy
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Think about what’s changed in your business
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Call someone who knows your industry and can help
📞 Call Kelstar Insurance at 307-316-8240
🌐 Or visit kelstarinsurance.com/contact to schedule a free call with our team.
We’ll help you get the right coverage—so you can focus on running your gas station with confidence.
Frequently Asked Questions
1. Why is basic general liability insurance not enough for a gas station?
General liability covers common issues like customer injuries or third-party property damage. But gas stations face extra risks—like fuel leaks, fires, and equipment damage—that require more specialized policies. Without pollution coverage or underground tank insurance, you could face major costs that your basic policy won’t cover.
2. How often should I review my gas station’s insurance policy?
At least once a year. It’s also smart to review your policy any time your business changes—like adding a new service, hiring more staff, opening another location, or upgrading equipment. Regular reviews help keep your insurance in step with your business.
3. What happens if I don’t tell my insurer about changes to my gas station?
If your insurance company doesn’t know about major changes—like a new car wash, beer sales, or additional fuel pumps—those items might not be covered. If there’s damage or a lawsuit, your claim could be denied, and you may have to pay out of pocket.
4. What kind of employee-related insurance do I need?
You’ll need Workers’ Compensation (required in most states) to cover injuries. You should also consider:
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EPLI (Employment Practices Liability Insurance) to cover lawsuits about discrimination or harassment.
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Crime coverage to protect against employee theft.
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Assault and battery coverage for physical incidents.
These coverages help keep both your team and your business protected.
5. I lease my building and fuel pumps. Does that affect my insurance?
Yes. Lease agreements often require you to carry specific types and amounts of insurance. You may also need to add your landlord or equipment provider as an “additional insured.” Not meeting these requirements can lead to denied claims or legal disputes.
6. What’s the risk if I expand my services without updating my insurance?
Adding new services—like food prep, beer sales, or fuel delivery—brings new risks. If your insurance doesn’t reflect these services, you may not be covered if something goes wrong. Every expansion is a good time to update your policy.
7. Can one insurance policy cover multiple gas station locations?
Yes, but you need to make sure each location is listed on the policy. Coverage limits and risks can vary by location, so your agent should help you tailor protection to fit each site.
8. How do I know if I’m underinsured?
If you haven’t reviewed your coverage recently, or if you’ve had changes in staffing, equipment, or services, there’s a good chance your current policy has gaps. The best way to find out is by doing a professional insurance review with a trusted advisor like Kelstar.
9. Does Kelstar Insurance work with gas stations outside of Wyoming, Colorado, and Illinois?
Yes. While Kelstar is based in those three states, we support clients in many others. Our team works with over 50 insurance carriers, allowing us to offer custom coverage that fits your operation—wherever it’s located.
10. How can I get started with a coverage review or quote?
It’s easy. You can visit kelstarinsurance.com/contact or call 307-316-8240 to set up a free, no-pressure consultation. We’ll review your current coverage, identify any gaps, and help you build a better insurance plan for your gas station.
This article has been a collaboration between Kelstar Insurance and OpenAI’s ChatGPT. Created on May 12, 2025, it combines AI-generated draft material with Kelstar Insurance's expert revision and oversight, ensuring accuracy and relevance while addressing any AI limitations.