Is Your Ontario Snow Removal Business Insured for Winter?
Heavy snowfall and ice are on-the-job hazards. Ontario snow removal contractors need to make sure they have enough business liability insurance to cover the risks and hazards they can face.
Now is the time to check and update your snow removal insurance to make sure you’re adequately protected from third-party lawsuits for injuries or damages, mishaps, and accidents.
What insurance do Ontario snow removal contractors need?
Liability insurance is critical to your job. Here’s what you need:
Commercial general liability (CGL) insurance
CGL insurance is essential for your Ontario snow removal business. It covers third-party bodily injury and property damage claims, which can be common in the snow removal industry.
If a client slips and falls on a driveway you’ve just cleared because all of the ice wasn’t removed, general liability insurance can cover the medical expenses and any legal fees that may arise. Given the high risk of these incidents, it’s important to ensure that your coverage limits are high enough to protect your business.
Professional liability insurance
It’s also known as errors and omissions insurance, this coverage is necessary if you offer advisory services or if your work involves providing expert recommendations about snow removal.
If a client claims that your advice or service led to a financial loss, professional liability insurance can help cover the costs of defending your Ontario snow removal business legally against such claims.
What other insurance is recommended for Ontario snow removal contractors?
Hired and non-owned vehicle coverage
This type of insurance coverage protects vehicles that you use for snow removal that you don’t own. If you rent, lease, or borrow vehicles to run your operations, or employees use their personal vehicles for commercial purposes, hired and non-owned vehicle insurance needs to be added to your snow removal insurance policy.
For example, an employee attaches a snowplow to the front of their pickup truck but crashes while working at a job site. This type of coverage may cover repairing your employee’s truck.
Commercial auto insurance
Your snowplows, salt spreaders, and other vehicles are the backbone of your Ontario snow removal business. Commercial auto insurance covers damage to these vehicles, as well as liability if one of your drivers causes an accident.
It’s important to check that your coverage is up to date.
Equipment and tools coverage
Your Ontario snow removal business relies on various tools and equipment that are essential for completing jobs efficiently. This might include snow blowers, shovels, and de-icing equipment. Ensure that your policy covers the replacement or repair of these items in case of theft, damage, or breakdowns. Any item valued at less than $1,500 is considered a tool. Anything valued above $1,500 is considered equipment.
Key question: Do I need to add subcontractors to my snow removal insurance?
When you add a subcontractor to your Ontario snow removal insurance policy, it ensures that you cover them for the work that they perform only for you.
If you are an independent snow removal subcontractor in Ontario, consider buying commercial general liability (CGL) insurance for yourself to ensure you always have coverage, especially when an employer does not cover you.
How much does snow removal insurance cost?
It can be expensive because of the specific risks the snow removal industry brings, such as slip and fall injury claims.
The price of your snow removal insurance will also depend on your experience and the size of your Ontario snow clearing business. Are you clearing snow in a location that receives a lot or little snow? What is your revenue and how many employees do you have?
Did you know? In Ontario, total snowfalls along the shorelines of Lake Superior, Lake Huron and Georgian Bay reach 300 to 400 cm (118-157 in), most of which is due to lake-effect snowfall.
Did you know? If your snowplow was damaged after an accident, your commercial auto insurance coverage in your snow removal insurance package can help cover this cost. Commercial auto insurance also helps cover repair and replacement for theft or vandalism, and related legal fees.
Western Financial Group is a national insurance broker that has partnered with Canada’s leading insurers to meet your business insurance needs as an Ontario snow removal contractor. Our business insurance experts do the insurance shopping for you to get you a competitive commercial insurance quote that suits your needs and your budget as a small business owner.
