As we are all becoming aware of, the Insurance industry for Service Station businesses is dramatically changing, (and not for the better) and we are anticipating that it will become even more stringent in 2023.   All claims, whether small or large, will have a significant impact on your premiums. So, whatever you can do to prevent claims is more important now than it’s ever been.

Here are a couple of important reminders we’d like to readdress.

Gasoline theft.

In just the last couple of weeks we had three more diesel gasoline thefts, one of which was significant.  There are preventative measures that can be taken to prevent this type of theft.  As mentioned in our previous newsletter, there are alarms that can be installed on the dispenser that will set off a “bell” when someone tries to tamper with it. This worked very successfully for one of our insureds and prevented a potentially large claim. They are using a Ring Security Alarm with contact sensors. Also, train your employees to be more observant on trucks that are parked at pumps for extended periods of time.

Maintenance.

Remember, improper maintenance and normal wear and tear claims are not covered on any insurance policy.  With winter approaching, it is very important that you take time and clear the roof gutters and check your premises for any other areas that may need some repair to prevent potential issues or loss.

Dear valued customer;

With the rainy season upon us, we feel it’s a good time to re-address this very important issue;  Where insurance companies exclude claims that arise from normal wear and tear and/or improper maintenance.

Sometimes we think “Well, I’ve been paying all this money every year for insurance, therefore, I should be covered on any claim” unfortunately, this is not a valid argument.   ALL insurance companies exclude these type of claims which arise out of normal wear and tear and/or improper maintenance.

Examples of excluded wear/tear claims and improper maintenance claims:

•    Monument sign blew down and fell during heavy wind storm – after the insurance company did their investigation, they determined that the reason the sign fell was due to the fact that the base of sign had severely rusted and deteriorated over the years.  And if it was maintained properly, it would not have fallen down. The insurance company declined coverage.
•    Water pipe burst underground and caused severe damage – after the insurance company investigation, it was determined that the reason the pipe burst, was due to it being old and corroded. So the insurance company declined coverage.
•    During a heavy rain storm, water ran down the inside wall of the mini mart and did damage to walls and equipment. When the insurance company completed their investigation, they found that the drains on the roof were plugged, which then allowed the water to build up and spill over the water proofing material causing the leak inside the store. It was determined that if the drains were maintained properly and kept clean, this damage would not have occurred.  The claim was declined.

So, what’s the moral of this story:  Make sure to check and clean those gutters periodically, also check all your property periodically, and repair anything showing significant wear/tear BEFORE you find out the hard way and have your claim denied to due avoidable negligence.

We hope you find this information useful.  If you would like to add any thought to this subject, or have any suggestions you would like to know about for future newsletters, we would love to hear from you.  Your input is always welcome and appreciate.