Gas Station Insurance: Understanding Environmental Risks

Gas Station Insurance: Understanding Environmental Risks

Due to its nature, one risk, at minimum is lurking in every corner of a gas station. It’s no wonder, prospective gas station owners are required to procure insurance before they set up shop on the lush green hills of northeastern Connecticut.

But more than often, purchasing insurance a step that is overlooked and underestimated. And despite the laws enforced by the federal government and the presence of apparent risks, independent gas stations still operate sans insurance coverage.

Connecticut gas stations are complex, in that many are comprised of additional goods and services (e.g. convenience store, car wash, car repair shop). While these additions are clearly more profitable than the commodity (e.g. petroleum) itself, gas stations will be susceptible to more risks. But for the purposes of this post, lets focus on a primary risk associated in any and all gas stations—environment hazards and concerns.

Although gas stations are not necessarily environmental hazards, the potentiality of leakage and carelessness (amongst staff and customers) creates several environment hazards.

Environmental Hazards Present in Connecticut Gas Stations 

• Residents living in close proximity to a Connecticut gas station

• • The Problem: Ground-level ozone caused by volatile organic compounds, such as carbon monoxide and gas vapors
  • The Cause: Typically, service stations only carry pumps equipped with a vapor-recovery boot on the nozzles, but sometimes they don’t function properly. In that event, ozone pollution is produced.
  • The Effect: If a community is established in high ozone levels, residents become susceptible to respiratory issues and asthma.

• • The Problem: Groundwater hazards are caused from petroleum leakage.
  • The Cause: When an underground storage tank leaks or a pipe leading to the tanks is ruptured, the soil and groundwater is contaminated.
  • The Effect: Groundwater is the source of drinking water for nearly half of the U.S. Consequently, the drinking water is tainted with a number of chemicals, such as methyl tertiary-butyl ether (MTBE).

• While in a Connecticut Gas Station
  • The Problem: Gasoline is an explosive substance (can create fuel explosion and static electrics that ignites fuel vapors). Therefore, it can easily cause fires and explosions.
  • The Cause(s): Cellphone usage and smoking/lightning an object creates sparks. If your engine is on when fueling your vehicle, the electrical wires in your engine can come into contact with gas vapors.
  • The Effect: These can potentially ignite a fire and/or cause an explosion.

At the Byrnes Agency, we provide Connecticut Gas Station insurance for businesses throughout Connecticut for both independents and franchisees. Our insurance plans cover everything from employee protection to Public Liability insurance as well as Environmental and Storage Tank insurance. If you also sell groceries or other items as well as gas, we’ll review with you the necessary coverages for this type of operation.

Give us a call today

• Dayville Office
  860-774-8549
• Norwich Office
  860-886-5498
• Woodstock Office
  860-928-7928