Most general contractors know to verify that an electrical subcontractor is licensed and insured.

Certificate of Insurance? Check.
General Liability? Check.
Workers’ Compensation? Check.

Everything looks good.

But on a petroleum project, there is another question worth asking:

Because those are not necessarily the same thing.

At JBElectric, we learned that distinction firsthand.

Before we fully understood just how nuanced the insurance requirements surrounding petroleum electrical work could be, a previous insurance carrier declined to continue covering our operation because of the nature and risk profile of the work we perform.

When you think about the combination, it makes sense:

Electricity.
Gasoline.
Flammable vapors.
Classified hazardous locations.
Underground petroleum equipment.
Pollution and environmental exposure.

Put all of those together and you are dealing with a very different risk profile than wiring an office, restaurant, retail store, or warehouse.

Gas Station Compliance Hub recently published an article addressing electrical safety around fuel dispensers and tank equipment:

Electrical Safety at Gas Stations: Fuel Dispensers & Tank Equipment Guide

https://gasstationcompliancehub.com/safety-training/electrical-safety-fuel-dispensers-tank-equipment

It highlights an important reality about fueling facilities:

The electrical systems associated with the fuel system operate in an environment that most commercial electrical projects simply do not have.

That can include:

These are not simply a few extra circuits on the electrical drawings.

They are electrical systems installed in and around equipment containing flammable liquids and potentially ignitable vapors.

Almost every experienced GC collects Certificates of Insurance.

But a COI can only tell you so much.

It may demonstrate that an electrical contractor has insurance.

It does not necessarily tell you:

• Whether their carrier knows they perform petroleum electrical work.
• Whether petroleum/fueling electrical is a covered or accepted classification of work under the policy.
• Whether work in Class I hazardous locations is contemplated by the insurance program.
• Whether the actual petroleum work environment falls within the carrier’s underwriting parameters.
• Whether pollution or environmental losses are excluded or limited.
• Whether specialized Pollution Liability coverage has been purchased.
• Whether professional errors or technical decisions are covered.
• Whether endorsements, exclusions, or other policy provisions materially restrict the work being performed.

In other words:

Fuel systems involve petroleum products, underground piping and equipment, dispensers, sumps, tanks, and systems intended to detect or prevent releases.

That means the insurance conversation shouldn’t stop at General Liability.

It should include a much more specific question:

At JBElectric, we decided ours needed to.

Today, our insurance program includes specialized:

Pollution Liability

Professional E&O

Rectification Coverage

in addition to our conventional contractor insurance program.

We didn’t add those protections because they sound good on a qualifications sheet.

Our experience with insurance became an important turning point for JBElectric.

We were not experimenting with a new industry.

Petroleum electrical was already our business.

The issue was that the combination of electrical contracting, fueling systems, potentially explosive atmospheres, and environmental exposure creates a level of risk that may be viewed very differently from conventional commercial electrical work.

That taught us something important:

We think it should.

So instead of treating petroleum work like another line item within a generic electrical package, we built our operation around it.

Our insurance program is built around petroleum.

Our crews are built around petroleum.

Our processes are built around petroleum.

Our supply chain is built around petroleum.

The best insurance claim is the one nobody ever has to make.

That’s why specialized insurance is only part of the JBElectric difference.

The more important part is what happens before insurance ever matters.

Approximately 92% of our portfolio is convenience-store and fueling work.

Our crews aren’t seeing a dispenser, STP, ATG, classified location, seal-off, or intrinsically safe circuit for the first time on your project.

That matters because details that might be inconvenient on an ordinary commercial project can carry far greater consequences in a petroleum environment.

A mistake can become:

We understand why bundling the entire electrical package is attractive.

One electrician.

One contract.

One number.

One company responsible for everything.

It looks simple on a bid tab.

But simplicity on a spreadsheet does not eliminate technical or financial risk.

If a general commercial electrician has limited petroleum experience, bundling the fuel scope may simply mean assigning one of the most specialized portions of the project to whichever contractor happened to have the lowest overall electrical number.

Then the “savings” can start disappearing.

A few thousand dollars saved during buyout doesn’t look quite as impressive after:

rework, failed inspections, commissioning delays, change orders, opening delays, or a fuel-system problem.

And the lowest electrical bid becomes a lot less interesting if an incident eventually raises this question:

There are plenty of excellent commercial electrical contractors.

They may be exceptional at:

That does not automatically make them petroleum electrical specialists.

And it doesn’t need to.

Keep the commercial electrician you already know and trust on the building if that makes sense for your project.

But when the scope crosses into the fuel system, put that work in the hands of a contractor built specifically for it.

That gives you a clear division of responsibility while placing the petroleum, hazardous-location, and intrinsically safe electrical work with a contractor whose company is structured around that exposure.

Experience built around petroleum.

Crews built around petroleum.

Insurance built around petroleum.

Processes built around petroleum.

Supply chain built around petroleum.

Don’t wait until inspection to find out.

Don’t wait until commissioning.

And definitely don’t wait until an incident to discover that the contractor you selected lacked the petroleum experience—or insurance program—the work required.

If you’re building or remodeling a: