What is Petroleum Distribution Package?
A Petroleum Distribution Package is a bundled insurance solution designed for businesses that store, transport, or sell fuel products such as gasoline, diesel, home heating oil, jet fuel and kerosene. It combines coverages that address general liability and property risks with options for commercial auto exposure, equipment coverage, and excess liability limits to better reflect the mix of transportation and facility risks in the fuel supply chain.
Who needs it
Typical buyers include fuel distributors, bulk plant operators, jobber-dealers, terminal operators, and fuel retailers. Smaller wholesalers and contractors who handle deliveries or manage on-site storage tanks often look for a package tailored to both site exposures and transportation risk. For businesses seeking more details on options for transport and storage, see Petroleum Distribution Insurance and resources for broader distributor needs at Petroleum Distributors Insurance.
What it typically covers
Packages usually include:
- Commercial general liability to protect against third‑party bodily injury and property damage exposures stemming from daily operations.
- Commercial auto coverage for delivery trucks, tankers, and other vehicles (commercial auto exposure).
- Property coverage for buildings, tanks, piping and inventory, plus equipment coverage for dispensers and pumps.
- Pollution liability extensions or endorsements to address accidental fuel releases or spills.
- Optional excess or umbrella limits to increase protection above primary policy limits.
Underwriters will consider operational hazards, transportation risks, and site-specific factors when choosing appropriate limits and endorsements. For examples of combined solutions that include auto and excess layers, see Petroleum Distribution Package, Auto, and Excess Insurance.
Common exclusions or limitations
Policies often exclude or limit coverage for intentional acts, long-term gradual pollution, or certain types of environmental remediation costs unless specifically endorsed. Professional liability, product recall, and some cyber exposures are usually outside a standard package and require additional policies or endorsements. Always review policy declarations and exclusions closely as part of your risk management considerations.
Factors that influence cost
Cost drivers include annual fuel volume, number and type of vehicles, loss history, storage tank condition, proximity to populated areas, and safety programs in place. Underwriting factors also weigh equipment maintenance records, employee training, and whether the operation uses route risk controls or spill containment systems.
Proof of insurance & compliance
Many customers, landlords, or regulators will request certificates of insurance and specific endorsements to demonstrate compliance with contract or lease obligations. Certificates provide a snapshot of coverage but review policy forms for limits, exclusions, and any required additional insured wording for customers or contractors.
How to get a quote
Gather basic information about your operations—annual volumes, vehicle details, property values, and loss history—then request multiple quotes to compare coverages and limits. If you're unsure which limits or endorsements suit your operations, talk to your agent for guidance and to start the quoting process.
Risk scenario: a delivery vehicle accident that causes a small fuel spill and third‑party property damage is a typical exposure that combines commercial auto and pollution considerations.
Frequently Asked Questions
Do standard packages include pollution coverage for spills?
Not always. Some packages include limited sudden-and-accidental pollution coverage, but many require specific endorsements or separate pollution liability policies for broader cleanup and third‑party claims.
Will coverage follow me if I haul fuel under contract for another company?
Coverage depends on the policy's auto and contractual liability provisions. For contract haulers, confirm whether hired/non-owned auto or contractual liability exposures are covered and whether additional insured wording is required.
How can I lower my premium?
Implementing documented safety programs, maintaining tanks and equipment, training drivers, reducing on-site inventory, and improving loss prevention practices can all favorably influence underwriting and pricing.
Still have questions? Talk to a local insurance expert.