Propane And Fuel Dealers Insurance Policy Information
Propane And Fuel Dealers Insurance. If you supply and deliver propane or other types of fuel to homeowners and business owners, you are doing more than just supplying your customers with the fuel that the need to power their properties; you are also making sure that they have they have something that they need to remain comfortable and function properly. Your company serves a vital role in the role of owning a home or a business.
Fuel oil dealers distribute liquid heating oil to residential or commercial customers. They may also deliver kerosene or propane. Firms typically deliver fuel to established customers with whom they have a contract stating specific responsibilities and duties. Drivers may deliver directly to customers on their routes, or they may first pick up the fuel from a separate distribution point. Drivers may also have some responsibility for collections.
While your business is vital because it meets the specific needs of your clients, there are also key risks that are involved with being a propane or fuel dealer. Propane, gas, oil, kerosene, and other types of fuels are highly combustible and can start a raging fire in no time. They can also do extensive damage to a property if they leak during a delivery or if a delivery truck becomes compromised. Plus, you also need to consider the safety of your employees.
Given the risks that are associated with operating a propane or fuel dealership, it is vital that you protect yourself, your clients, and yourself from any perils that may arise. The best way to do that is with the right propane and fuel dealers insurance coverage.
Propane and fuel dealers insurance protects your business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked propane and fuel dealers insurance questions:
- What Is Propane And Fuel Dealers Insurance?
- How Much Does Propane And Fuel Dealers Insurance Cost?
- Why Do Fuel Dealers Need Insurance?
- What Type Of Insurance Coverage Should Fuel Dealers Have?
- What Does Propane And Fuel Dealers Insurance Cover & Pay For?
What Is Propane And Fuel Dealers Insurance?
Propane and fuel dealers insurance is a type of insurance designed specifically for businesses that sell and distribute propane and other fuels. This insurance covers various risks associated with the storage, transportation, and distribution of these fuels.
This may include liability for damage to property, injury to people, and environmental damage. The insurance may also cover the cost of any lawsuits that may arise as a result of these risks.
The coverage and specific policies may vary, so it is important to consult with an insurance professional to determine the best insurance coverage for a specific propane and fuel dealers business.
How Much Does Propane And Fuel Dealers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small propane and fuel dealers ranges from $57 to $89 per month based on location, size, payroll, sales and experience.
Why Do Fuel Dealers Need Insurance?
As a fuel dealer, you face several risks and potential liabilities every day. Some of the reasons why fuel dealers need insurance include:
Physical damage to property - Fuel dealers store large quantities of flammable and dangerous liquids on their property. A fire, explosion, or natural disaster can cause significant damage to the property, equipment, and the fuel itself.
Liability for third-party damage - In the event of a spill or leak, the fuel dealer may be held responsible for any damage caused to the environment, surrounding properties, and people.
Legal liability - Fuel dealers are subject to numerous federal and state regulations, including the Clean Air Act and Clean Water Act. Failure to comply with these regulations can result in fines and lawsuits.
Employee injury - Handling and transporting fuel involves the risk of injury to employees. Insurance can cover the cost of medical expenses and lost wages if an employee is injured on the job.
Product liability - If a customer experiences a problem with the fuel they purchased, they may hold the fuel dealer responsible. Insurance can cover the cost of any damages or legal fees.
Overall, insurance protects fuel dealers from potential losses and helps them manage risks associated with their business operations.
What Type Of Insurance Coverage Should Fuel Dealers Have?
There are a few different types of insurance policies that propane and fuel delivery companies should carry. Each policy provides coverage for specific risks that are associated with running this type of business. The most important insurance policies a company in this industry should have include:
Commercial General Liability: Your company interacts with various people on a regular basis, such as vendors, clients, and contractors. If someone suffers an injury or somebody's property is damaged and your company faces a lawsuit as a result, commercial general liability insurance will offer you the protection you need.
This type of policy covers things like personal injuries and damaged property.
It will cover the legal costs, medical costs, and replacement costs that are associated with any claims. It will also provide coverage if your company damages someone else's property while a delivery is being made; the truck hits a mailbox or a fire breaks out, for example.
Business Auto: If you are in the propane or fuel supply business, you rely on your vehicles to make deliveries to your clients. What happens if an accident involving one of your vehicles happens and someone is injured, property is damaged, or your truck is totaled?
A commercial auto insurance will provide coverage for any mishaps that may occur with your company vehicles so that you don't have to pay damage, repair, or replacement costs out of your own pocket.
Workers' Compensation: You count on your employees to take orders, deliver your products, and offer stellar customer service. They count on you to provide them with the protection that they need in the event that an accident happens on the job.
Workers comp will provide your employees with the financial coverage they need should they be involved in a work-related accident or develop a work-related illness.
It will cover the cost of medical care, lost wages, job placement assistance if the employee is rendered unable to return to work with your business. It also offers compensation for the survivors of a worker should death be the result of a work-related accident or illness.
These are just some of the types of propane and fuel dealers insurance coverage you should carry. Following is a list of some additional coverages you can get:
- Fuel dealers automatic fill endorsement
- Fuel dealers property extension
- Misdelivery of liquid products
- Missed delivery coverage
- Pollution coverage for spills or leaks
- Unloading and loading coverage
To learn exactly what types of insurance policies your company needs, it is important that you speak with an agent that understands your risks.
Commercial insurance coverage is important for a propane and fuel delivery company. Make sure that you protect yourself, your business, your employees, and your clients with the right type of coverage.
Fuel Oil Dealers Risks & Exposures
Premises liability exposure may be limited if there is no fuel storage on premises and no customer visits. If fuel is stored on the premises, fire, smoke, fumes, and vapors may spread to neighboring properties. There may be an attractive nuisance hazard with tank storage in the yard that must be controlled with fences and other barriers to prevent unauthorized access.
Contractual liability exposures may arise from keep-fill or automatic delivery contracts. If a driver fails to deliver the product as agreed, the customer may sue the insured for resulting damage to the home or business, such as the bursting of water pipes due to lack of heat in a building during subfreezing weather. Other off-premises exposures occur when fuel oil is spilled at the customer's location, delivered to the wrong location, or delivered into the incorrect receptacle.
Products liability exposure is limited due to the standards and controls in the grading and content of fuel oil. The customer's furnace could be damaged if contaminated fuel or the wrong grade of fuel is delivered. Hazards increase if tanks are not regularly cleaned, especially following a change of fuel formula.
Environmental impairment liability exposure is high due to the potential for contamination of air, surface, or groundwater, or soil from spillage or leakage of storage tanks or the collision or overturn of transporting vehicles. All storage and disposal procedures must meet federal and state regulations.
Workers compensation exposures are very high from the filling of tanks and trucks and the transport of the fuels. Employees who pump or deliver the heating oil may develop respiratory ailments as a result of cumulative exposure to hazardous fumes. Severe burns may result during a collision or overturn of the vehicles. Lifting and pulling hoses can result in back sprains and hernias. Cuts, puncture wounds, foreign objects in the eyes, slips and falls can develop from the repair and maintenance of vehicles.
Property exposure consists of an office and material, equipment, and vehicle storage. Fuels improperly stored on premises can result in fire and explosion. All storage tanks should be well maintained, grounded, and operating correctly. Hazards are higher in the absence of proper controls including separation of storage tanks to limit chain reactions and dikes to control spills.
If repair work on vehicles and equipment is done in the building, there will be other flammables including lubricants, oils, degreasers, and solvents, increasing the fire hazard. These must be properly labeled, stored, and separated. Equipment and supplies stored in the yard can be damaged by wind, vandalism, and theft. Cleaning agents used to remove residue from tanks may be combustible. Due to the high demand and cost of fuels, theft can be a problem. Alarms, guards, fencing, and other security precautions must be in place as appropriate to the location.
Equipment breakdown exposures include breakdown losses to the building environmental control systems, electrical control panels, and other apparatus. If there is any refining or processing, breakdown, and loss of use to the production machinery, it could result in a significant loss, both direct and under time element. Replacement parts may be difficult to obtain on a timely basis.
Crime exposure is primarily from employee dishonesty. Background checks should be conducted on all employees handling money. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements. Other hazards include money and securities if cash payments are permitted in the office or to drivers. Receipts should be issued for any cash payments received. Fuel oil may be a target for theft by employees or third parties. Physical inventories should be conducted at least annually.
Inland marine exposure is from accounts receivable if the dealer offers credit, computers, goods in transit and valuable papers and records for customers' and suppliers' information. Fuel oil can be hijacked, spilled, or it can ignite during a collision. Backup copies of all records, including computer records, should be made and stored off premises.
Commercial auto exposures can be high due to the ongoing transport of fuel oils. Collision and overturn can cause significant personal, property, and environmental losses, particularly if spill controls and procedures are not implemented. Delivery in rural areas may necessitate regular travel over uneven terrain or in inclement weather. Hazards may increase if routes are irregular or if drivers often deliver to unfamiliar areas.
Drivers must be experienced with commercial licenses and have acceptable MVRs. Any drivers with an Haz-Mat license should be regularly tested on tanker handling. Random drug and alcohol testing should be conducted. All vehicles, especially tankers, must be inspected regularly with maintenance logs updated and retained for documentation.
What Does Propane And Fuel Dealers Insurance Cover & Pay For?
Propane and fuel dealers can be sued for a variety of reasons, including:
Property damage or personal injury: If a propane or fuel delivery truck causes an accident that damages someone's property or injures a person, the dealer may be sued for damages. A commercial auto insurance policy can help pay for damages and medical expenses if a propane or fuel delivery truck causes an accident. General liability insurance can also provide coverage for property damage and bodily injury.
Product liability: If a propane or fuel product causes harm to a customer or their property, the dealer may be sued for product liability. A product liability insurance policy can help pay for damages if a propane or fuel product causes harm to a customer or their property.
Breach of contract: If a dealer fails to deliver fuel or propane as promised or breaches a contract with a customer, they may be sued for breach of contract. A errors and omissions insurance policy can help pay for damages if a dealer fails to deliver fuel or propane as promised or breaches a contract with a customer.
Environmental damage: If a dealer spills fuel or propane and causes environmental damage, they may be sued for damages. An environmental liability insurance policy can help pay for damages if a dealer spills fuel or propane and causes environmental damage.
Negligence: If a dealer is negligent in their delivery or installation of propane or fuel equipment, they may be sued for damages. A professional liability insurance policy can help pay for damages if a dealer is negligent in their delivery or installation of propane or fuel equipment.
Insurance can help protect propane and fuel dealers from these types of lawsuits. It's important for propane and fuel dealers to have the right insurance coverage to protect their business and assets from the financial impact of lawsuits.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5983 Fuel Oil Dealer
- NAICS CODE: 454310 Fuel Dealers
- Suggested Workers Compensation Code(s): 8350 Gas Dealer - Liquefied Petroleum Gas & Drivers
5983: Fuel Oil Dealer
Division G: Retail Trade | Major Group 59: Miscellaneous Retail | Industry Group 598: Fuel Dealers
5983 Fuel Oil Dealer: 5983 Fuel Oil Dealers Establishments primarily engaged in the retail sale of fuel oil. Establishments primarily engaged in selling fuel oil burners are classified in Wholesale Trade, Industry 5074; those primarily engaged in installing and servicing fuel oil burners are classified in Construction, Industry 1711; and those engaged in fuel oil burner repair service only are classified in Services, Industry 7699.
- Fuel oil dealers-retail
Propane And Fuel Dealers Insurance - The Bottom Line
To find out exactly what type of propane and fuel dealers insurance you need - and how much coverage you should have... speak to a licensed insurance agent to go over your options.
Additional Resources For Contractors & Home Improvement Insurance
Learn about small business contractor's insurance, including what it covers, how much it costs - and how commercial insurance can help protect your contracting business from lawsuits.
- Air Conditioning Systems Installation Repair
- Appliance Repair & Service
- Blacksmith & Metal Workers
- Boat Repair & Dry Docks
- Boiler Contractors
- Builders Risk
- Building Cleaning & Maintenance Services
- Cabinet Installer
- Cable And Satellite TV Installer
- Chimney Sweep
- Cistern Contractors
- Contractor Liability
- Curtain Cleaners
- Deck Builders
- Door And Window Installers
- Dryer Vent Cleaning
- Drywall Contractor
- Electrical Contractors
- Environmental Remediation Contractors
- Fence Installation
- Fire Sprinkler Contractors
- Fire & Water Restoration Contractors
- Flooring Contractor
- Furniture Repair
- Garage Door Installer And Repair
- General Contractors
- Glass Contractor
- Glazier Insurance
- Gutter Installation And Repair
- House Cleaning
- HVAC Contractor
- Insulation Contractor
- Janitorial Cleaning Services
- Lawn Care
- Lawn Irrigation Sprinkler System Installation
- Oil And Gas Well Drilling Contractors
- Paperhanging Contractors
- Plastering And Stucco Contractor
- Pressure Washing Contractors
- Propane And Fuel Dealers
- Rug, Upholstery & Carpet Cleaning
- Sandblasting Contractors
- Security Alarm
- Septic Tank Cleaning
- Siding Contractor
- Sign Installation & Repair
- Solar Panel Installers
- Snow Plow
- Stone And Tile Installer
- Surety Bonds
- Swimming Pool Contractor
- Swimming Pool Service And Maintenance
- Tank Cleaners
- Tool Grinding And Repair
- Tree Surgeon
- Tree Trimming
- Upholstery Shop
- Waste Haulers & Garbage Collection
- Water Well Drilling
- Welding Contractor
- Wildlife & Pest Control
- Window Cleaning
- Specialty Contractors
The contracting industry is a field that involves a lot of risks, both for the contractor and for the clients they work for. This is why commercial insurance is so important for contractors. Insurance can protect contractors from a variety of potential losses, such as:
Liability: If a contractor causes damage to a client's property or if a client is injured while on a job site, the contractor could be held legally responsible. Liability insurance can cover legal fees and any settlements or judgments that may be awarded.
Property damage: Contractors often use a lot of expensive equipment and tools, and there is always a risk that this equipment could be damaged or stolen. Commercial property insurance can help cover the cost of replacing damaged or stolen equipment.
Business interruption: If a contractor is unable to work due to an unforeseen event, such as a natural disaster, insurance can help cover their lost income during this time.
Workers compensation: If a contractor or one of their employees is injured on the job, worker's comp can help cover medical expenses and lost wages.
Overall, commercial insurance is an important risk management tool for contractors. It can provide financial protection against a wide range of potential losses, helping contractors to stay in business and continue serving their clients.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Contractors' Equipment and Tools, General Liability, Employee Benefits Liability, Umbrella Liability, Automobile Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivable, Builders Risk, Computers, Goods in Transit, Installation Floater, Valuable Papers and Records, Cyber Liability, Employment-related Practicesand Stop Gap Liability.