Arthur J. Gallagher (formerly OAMPS) has been ACAPMA’s endorsed insurance broker for more than 30 years.

As a specialist broker for the fuel industry and convenience stores sector, Arthur J. Gallagher (AJG) sees a large number of claims on a monthly basis which can act as reminder to other businesses in the industry to the risks they face on a daily basis.

AJG’s latest incident report features some major insurance claims events that are relevant to businesses across the sector.

Incident report June 2017

  1. A car lost control in a remote area and collided with the prime mover of an on-coming tanker. This tragically resulted in a triple fatality and a large product loss. A swift emergency response and clean-up operation prevented greater environmental damage. While the driver of the tanker was not badly hurt, it is typical in cases of this nature for there to be an extended period of leave and use of grievance counselling. It is not uncommon for drivers never to return to work after an incident of this type.
  2. In another fatal incident, a third party drove into a gas tanker, causing a severe fire. The claim is complicated by the fact that the tanker was being driven by a contractor, which brings significant legal implications. Even though the driver was not negligent, they can be deemed responsible from a legal perspective.
  3. A major fuel plant fire in NSW highlighted the importance of adequate business interruption insurance. While this incident could have been a lot worse, a large amount of fuel stock was lost, with the fire likely to have been caused by an equipment fault. The business faces significant loss of profits for several months – but the majority of these costs are fortunately likely to be covered through the business interruption insurance cover.

Overseas incident

Although it occurred in the UK, the GBP8 million (AUS$13.4 million) fine handed out to Tesco Stores Ltd in June is an extremely interesting one.

Tesco, which runs a large supermarket and filling station network, pleaded guilty to a pollution incident from 2014 in which approximately 23,500 litres of petrol escaped from a filling tank, contaminating the local sewer system, as well as entering waterways and causing a significant environmental impact.

Tesco was fined GBP5 million for a health and safety offence and GBP3 million for the environmental offence after an investigation found that the incident resulted from Tesco’s failure to address known issues with the wet stop monitoring and alarm systems.

This event is noteworthy because of the scale of the fine, and also because it is the sort of incident that could happen anywhere, with human error and processes not being adhered a key contributor.

Sound risk management and robust insurance programs should allow businesses in the fuel and convenience stores sectors to survive most of the incidents reported this month.

If you need advice on risk management and insurance for your business, contact Arthur J. Gallagher Insurance Brokers on (03) 9412 1688 or visit to request more information on our range of insurance solutions.