Regional Petroleum Dealer

This regional petroleum dealer came to Richardson Insurance Group (RIG) after a minor fuel spill during delivery triggered an environmental claim, exposing just how vulnerable their insurance program really was.

Coverage was fragmented across multiple carriers, creating gaps in protection and inefficiencies in claims handling. There was no formal risk management strategy in place, and the client had growing concerns about regulatory compliance and environmental exposure.

Key Issues Also Included:

• Rising umbrella and auto liability premiums
• Pollution coverage limited to “sudden and accidental” events only, with no transportation pollution liability
• Insufficient umbrella limits relative to fuel-hauling exposure
• Inadequate business income coverage for convenience stores
• No formal risk management strategy

Primary Exposures Included:

• Fuel spills during transport or transfer
• Underground storage tank (UST) leaks
• Environmental impairment liability
• Auto liability across the fuel transport fleet
• Property risk at convenience store locations
• Workers’ compensation for both drivers and retail employees

RIG conducted a comprehensive operational review, covering: fleet safety procedures; tank inspection and maintenance records; spill containment protocols; fuel supplier and retail tenant contracts; and a full, five-year loss-history analysis.

From there, RIG designed an integrated insurance program and implemented formal risk management enhancements.

Coverage Placements Included:

Property:
Replacement cost valuation; ordinance and law coverage; and equipment breakdown

General Liability:
Broadened coverage for fuel operations with limits increased to meet contractual requirements

Auto Liability:
$1M primary liability; a driver MVR monitoring program; and a telematics recommendation for loss-control credits

Pollution Liability (Site & Transportation):
$5M aggregate environmental impairment liability covering gradual pollution events; cleanup costs; third-party bodily injury and property damage; and transportation pollution coverage for fuel deliveries

Umbrella Liability:
Increased to $10M total limits

Workers’ Compensation:
Experience-modification review and safety program consultation to reduce mod factor

Risk Management Enhancements Included:

• Formal driver safety program
• Spill response training and documentation procedures
• Annual tank inspection tracking system
• Contractual risk-transfer language updates
• OSHA compliance checklist for retail operations

Within 12 months, the client saw meaningful improvement across both their financials and their risk posture, with:

• An 18% reduction in total cost of risk
• Broader pollution coverage with significantly higher limits
• Improved carrier relationships
• A stronger compliance posture
• Reduced auto claims frequency through safety protocol implementation

Perhaps most importantly, the client gained confidence knowing their environmental and transportation exposures were properly addressed—protecting both the business and personal assets.