Petroleum Distributors are not limited to the wholesale or retail distribution of fuels.  Some distributors have a wide variety of products and services offered.  Exposures can include convenience store sales, wine and liquor sales, food sales, towing, and in some cases even auto parts sales, auto repair and other related items.  Some distributors that deliver heating fuel also service commercial and residential heating systems.  Below are a few of the main insurance risk exposures petroleum distributors face along with minimum coverages suggested. 

Risk Exposures:

• Fire and explosion, particularly associated with dispensing and delivering fuels.
• Slip-and-falls in association with premises.  Parking lots must be well maintained and lit.
• Pollution liability from overturned vehicles, leaking or damaged tanks.  Further pollution exposure exists if lubricants, solvents, or other automotive fluids are stocked and sold.
• Commercial Auto & Truck exposure is typically large in this class of business due to average number of vehicles involved, their size, their contents, and their value.  Strict driver controls are needed.
• Hired and non-owned Auto:  exposure due to employees driving their own vehicles between locations or doing business errands in their own vehicles.  Company renting/leasing of vehicles, even as a temporary replacement, is a sometimes overlooked exposure.
• Workers Compensation due to lifting, slip and falls, respiratory ailments, and holdups.
• Liquor Liability for under age sales, sales to those visibly impaired, or simply from frivolous lawsuits.
• Crime (including employee theft).
• Sign damage:  Outdoor signs are typically not covered or under-covered under standard policies.
• Garage keepers liability:  Completed products in the event a vehicle is improperly repaired and causes an accident.  Physical damage to customer's vehicles while at the garage.
• See further insurance risk detail as needed by clicking petroleum distributors, convenience stores, liquor retailers, auto parts stores, auto repair, and HVAC contractors.

Coverages Needed

• Property:  Buildings, inventory, stock, computer systems, bulk fuels, bulk tanks, pumps, piping & valves, tools, equipment.
• General Liability
• Liquor Liability if wine or beer is sold
• Commercial Auto & Truck
• Pollution Liability
• Garage keepers if auto repair of any type is offered.
• Workers Compensation
• Inland Marine:  Equipment, tools, and business property that is moved away from the premises or transported by auto.
• For full definitions of coverages, see our Business Insurance Information page.