Accidents at petrol stations are more common than most business owners realise — from fuel spills and car collisions on the forecourt to slips, falls, and even environmental contamination.
Knowing your insurance rights is crucial. Without the right cover in place, a single claim could cost tens of thousands of dollars — or even force a business closure.
This guide by Global Insurance Solutions explains what happens when an accident occurs at a service station, what your insurance should cover, and how to protect your operations and reputation.
Why Service Stations Face Unique Accident Risks?
A service station is a high-risk environment where people, vehicles, and flammable materials operate in proximity.
Common accident causes include:
- Vehicle collisions or roll-aways on the forecourt
- Fuel leaks or spills cause fires and slips
- Customer injury near fuel pumps or shop entryways
- Mechanical failure of underground storage tanks (USTs)
- Staff injury while handling fuel or cleaning hazards
Even a minor incident can escalate into property damage, personal injury, or environmental contamination — all of which can trigger costly claims under your service station insurance.
Every accident, no matter how small, has legal and financial implications for the owner.
What Insurance Covers Service Station Accidents?
To protect your business, you need a layered insurance program that covers your forecourt, shop, staff, and customers.
Covers claims from third parties (customers, suppliers, or visitors) for injury or property damage on your premises.
Example: A customer slips on a fuel spill and suffers a back injury.
Applies when products sold at your station — such as fuel, food, or car accessories — cause harm or damage.
Example: Contaminated fuel damages a customer’s engine.
3. Property and Business Interruption Insurance
Covers physical damage to your site, stock, and equipment, as well as lost income during downtime after an insured event like a fire or collision.
Protects owners and directors against claims involving wrongful acts, employment disputes, or regulatory breaches following an incident.
5. Environmental Liability Insurance
Covers clean-up costs, legal defence, and third-party damages from pollution events, such as underground fuel leaks or contaminated stormwater runoff.
These policies form the foundation of a comprehensive petrol service station risk insurance plan.
Who Is Liable After a Petrol Station Accident?
Liability depends on where and how the accident occurred.
If the incident is due to:
- A customer’s negligence → they may be liable for damages.
- Business negligence (unsafe conditions, poor maintenance) → the owner may be held liable.
- Equipment failure (e.g., faulty pump) → liability may be shared between the owner and supplier.
Having the right petrol station liability insurance ensures that legal fees, compensation payouts, and defence costs are covered if the business is found responsible.
Understanding Petrol Service Station Liability Insurance
Petrol station liability insurance is designed to protect owners from third-party claims that arise from incidents on-site.
This includes:
- Injuries on the forecourt or within the shop area
- Damage to vehicles caused by faulty pumps or equipment
- Fuel spills that result in environmental or property damage
- Alleged negligence in maintenance or safety practices
This cover is essential under Australian law, as claims involving injury or property loss can lead to both civil and regulatory penalties if uninsured.
Environmental and Forecourt Risks
Your forecourt is the heart of your business — but also its highest-risk zone.
Forecourt-Specific Exposures
- Vehicle collisions or drive-offs
- Fuel spills and vapour ignition
- Slip and fall accidents from oil residues
- Contamination from leaking underground storage tanks
Why Environmental Liability Matters?
Environmental claims are among the costliest for petrol station owners.
A single underground leak can contaminate soil or groundwater, triggering environmental clean-up orders and third-party claims worth hundreds of thousands of dollars.
That’s why petrol station forecourt insurance should include specific coverage for pollution, tank leakage, and environmental damage.
What to Do After an Accident Occurs?
A fast, documented response can prevent small incidents from escalating.
Immediate Steps:
- Ensure everyone’s safety — shut down fuel systems if needed.
- Call emergency services if injury or fire occurs.
- Record witness statements, CCTV footage, and incident details.
- Contact your insurance broker immediately.
- Do not admit liability — let your insurer assess the situation.
At Global Insurance Solutions, we guide clients through every step from claim lodgement to final settlement — ensuring a fair and prompt outcome.
How to Strengthen Your Insurance Protection?
Best Practices for Risk Control
- Conduct regular forecourt maintenance and safety audits.
- Train staff on fuel-handling and emergency shutdown procedures.
- Maintain visible spill kits and fire extinguishers.
- Install anti-slip flooring and safety signage.
- Keep UST testing and compliance records up to date.
A proactive service station risk management approach not only prevents incidents but can also help reduce your insurance premiums.
Protect Your Business With Global Insurance Solutions
At Global Insurance Solutions (GIS), we specialise in petrol service station indemnity insurance and forecourt risk protection tailored for Australian operators.
With access to over 150 insurers through the Steadfast Network, our team designs policies that cover property, liability, environmental, and business interruption exposures — ensuring your business stays operational even after an incident.
Whether you manage a single servo or a multi-site chain, GIS can help you:
✅ Review your current policy for gaps
✅ Strengthen your risk profile
✅ Access fast, fair claim support when it matters most
Don’t wait for an accident to test your insurance.
📞 Call 1300 710 665
Also Read : Car Theft at Petrol Station | Rural Petrol Station Risks | Fuel Tank Incident Insurance
Frequently Asked Questions (FAQs)
1. How does insurance work when it's not your fault?
If an accident isn’t your fault, your insurer can handle repairs and then recover costs from the at-fault party’s insurer through a process called subrogation.
2. How long after damage can you make an insurance claim?
Most insurers require you to lodge a claim as soon as possible, ideally within days of the incident, though some allow up to 12 months depending on the policy terms.
3. What are the 4 stages of the insurance claim process?
The four stages are: claim lodgement, assessment and investigation, repair or settlement, and final resolution or payout.
Important notice
This article is of a general nature only and does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with your insurance broker as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. You should consider any relevant Target Market Determination and Product Disclosure Statement in deciding whether to buy or renew these types of insurance. Various insurers issue these types of insurance and cover can differ between insurers.
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Global Insurance Solutions Pty Ltd make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Global Insurance Solutions Pty Ltd.
Risk Advisor, Insurance Broker & Director
With around 15 years in insurance, Yuvi Singh is a passionate Risk Advisor, Director, and Insurance Broker at Global Insurance Solutions. Backed by a Commerce degree and ANZIIF diploma, Yuvi leads a team servicing SMEs across industries like manufacturing, logistics, fuel, IT, and more. At GIS, clients benefit from tailored, transparent advice, access to 150+ insurers, and end-to-end risk solutions. Recognised as a 2022 Insurance Magazine Rising Star and 2024 Top Insurance Broker by Insurance Business Australia, Yuvi delivers flexible, effective outcomes with integrity and innovation.