What is Petroleum Distribution Package, Auto, and Excess?
A Petroleum Distribution Package, Auto, and Excess insurance policy is designed specifically for businesses involved in the distribution, transportation, and delivery of petroleum products. This specialized insurance combines several types of coverage into one policy to address the complex risks associated with handling and transporting fuel, oil, and related products. The package typically includes commercial auto insurance, general liability, pollution liability, and excess liability coverage.
Who Needs It
This type of insurance is essential for companies that distribute gasoline, diesel, heating oil, propane, lubricants, or other petroleum-based products. Businesses that own fuel trucks, operate bulk storage facilities, or deliver to residential, commercial, or industrial sites should consider this coverage. It's also important for companies that operate tank wagons, bobtail trucks, or transport fuel across state lines.
What It Typically Covers
A Petroleum Distribution Package, Auto, and Excess policy may include:
- Commercial Auto Insurance: Covers company-owned vehicles used to transport petroleum products, including liability and physical damage.
- General Liability: Protects against third-party claims for bodily injury, property damage, or personal injury arising from business operations.
- Pollution Liability: Provides coverage for environmental damage caused by spills or leaks during transport or storage.
- Excess Liability: Offers additional limits above the primary policy coverage to address catastrophic losses.
- Property Coverage: May include protection for storage tanks, warehouses, and office spaces.
Common Exclusions and Limitations
While coverage is broad, there are common exclusions and limitations to be aware of, such as:
- Intentional acts or criminal behavior
- Fines and penalties for regulatory non-compliance
- Damage to your own products
- Undisclosed or unapproved drivers
- Wear and tear or mechanical breakdowns
Each policy can vary, so it's important to review coverage details with your provider.
Factors That Influence Cost
Several factors can affect the cost of a Petroleum Distribution Package, Auto, and Excess policy, including:
- Type and volume of petroleum products handled
- Size and condition of your fleet
- Business location and operating radius
- Claims history and safety record
- Coverage limits and deductibles chosen
Proof of Insurance and Compliance
Many states require proof of insurance for petroleum distributors, especially for commercial vehicles and environmental liability. Having valid coverage helps meet regulatory requirements and provides peace of mind for clients and partners. Always check with your state and local authorities for specific compliance guidelines.
How to Get a Quote
To get customized protection for your petroleum distribution business, request a quote today.
Frequently Asked Questions
What is the difference between auto liability and excess liability?
Auto liability covers claims from vehicle-related accidents, while excess liability provides additional coverage limits once your other policies are exhausted.
Is pollution liability included in all petroleum distribution policies?
Not always. Pollution liability is often optional or offered as an add-on. Be sure to confirm its inclusion when reviewing your policy.
Do I need this coverage if I outsource fuel delivery?
If you're legally responsible for the fuel or own the delivery equipment, you may still need coverage. Speak with an insurance advisor to assess your risk.
Are driver qualifications important for coverage?
Yes. Insurers often require drivers to meet certain standards, such as having a CDL and clean driving record, to maintain coverage eligibility.
Can I get coverage if I operate in multiple states?
Yes. Multi-state operations are common in this industry, and insurers can tailor policies to meet regional regulatory requirements.
Still have questions? Talk to a local insurance expert.