Is Your Snow Removal Business Insured Against Lawsuits?
What would you do if your snow removal business were sued? Liability claims, especially slip-and-fall incidents, are the most common and costly risks in snow removal. Even after snow is plowed, there can still be icy or slippery conditions and people may slip and fall on the cleared property.
Commercial general liability insurance is a key part of your snow removal insurance package to protect you from slip-and-fall lawsuits.
Western Financial Group, a 100% Canadian company, can help you navigate business, car, and home insurance during this period of economic uncertainty.
What is snow removal insurance?
Snow removal insurance protects you from liabilities and mishaps associated with clearing snow. It’s a package of insurance coverages that protects you against lawsuits, property and equipment damage and theft, and collision damage, among other examples.
How does commercial general liability insurance protect snow removal contractors against lawsuits?
Commercial general liability (CGL) insurance protects you against third-party injuries and property damage as a snow removal contractor.
Commercial general liability insurance protects your snow removal business against claims of third-party bodily injury or property damage occurring as a result of your snow removal business’s operations. If a customer sues your snow removal business for bodily or property damage, CGL insurance would help cover the legal costs.
If you were sued, CGL insurance would help cover the legal costs to defend the claim against your snow removal company in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.
Without CGL insurance, you will be responsible for paying all the costs related to third-party (member of the public/customers) damage to their property or injuries.
What does commercial general liability insurance help cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
How can snow removal operators save on their insurance with Western?
Western helps snow removal operators save on their insurance with the following:
- Bundle and save: You can combine snow removal insurance with other coverages such as landscaping, construction, or property insurance.
- Discounts: They’re available when you bundle liability, commercial auto, and property insurance.
- Cost: Depends on services provided, location and size, deductibles, properties service, vehicle and equipment values, and any past claims
Is snow removal insurance seasonal or all year?
While snow removal operations are seasonal, snow removal insurance is generally written as a year-round policy.
Western business insurance advisors ensure you’re covered properly without paying for extras you don’t need.
What other insurance coverages does Western recommend for snow removal operators?
Commercial auto insurance
Snow removal operators need commercial auto insurance because they use vehicles, including trucks, plows, and other equipment, while doing their work, often in blizzard or blizzard-like conditions.
Commercial auto insurance provides liability protection if the operator causes injury or property damage to others while operating a snow removal vehicle, such as hitting a parked car, mailbox, or building.
Contractor’s equipment insurance
It protects plows, loaders, and machinery against damage or theft. Contractor’s equipment insurance covers loss or damage to a contractor’s tools, machinery, and equipment, especially when these items are moved from one job site to another.
Contractor’s equipment insurance protects owned, rented, borrowed, or leased equipment. This coverage is essential for contractors who rely on expensive mobile equipment.
Commercial property insurance
It’s needed if you own or lease a shop, yard, or storage facility. Commercial property insurance protects your snow removal business against property losses, such as theft or vandalism. You can also add sewer backup or flood coverage extensions to protect your snow removal company’s headquarters.
Cyber liability insurance
Cyber liability insurance is recommended if you have digital contracts and payments.
Cyber liability insurance will help protect your snow removal company financially in case of a cyber-attack. Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages. That’s when cyber insurance can protect you financially.
How are subcontractors covered under snow removal insurance?
It’s important to know that subcontractors are not automatically covered by your snow removal insurance policy. Subcontractors must carry their own liability insurance and often need to name you as an additional insured.
Did you know? Western helps structure snow removal insurance contracts so liability isn’t unfairly shifted back to you.
Does snow removal insurance cover equipment damage?
Yes, snow removal insurance covers equipment damage. Contractor’s equipment insurance protects plows, skid steers, loaders, and other tools against:
- Collision damage
- Fire
- Theft
- Vandalism
What deductibles does Western recommend for snow removal businesses?
It depends on the size of your snow removal operation and your risk tolerance:
- $1,000–$2,500 for liability claims (balances affordability with protection).
- Higher deductibles (e.g., $5,000+) for equipment if you’re comfortable handling smaller losses out of pocket.
To sum it all up
Snow removal insurance protects you from significant financial risks if sued for accidents or if your equipment is stolen or damaged. Make sure you have enough liability insurance to protect your snow removal business.
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5 FAQs
Why is snow removal insurance all year instead of seasonal?
The equipment and vehicles used for snow removal are still at risk of damage, theft, or vandalism while in storage or during off-season. Year-round insurance covers these risks. Vehicles used for snow removal typically require commercial auto insurance year-round if they are driven for personal or other business use after winter. Get a snow removal insurance quote from Western Financial Group.
Is landscaping insurance also part of snow removal insurance?
Yes, landscaping insurance can be part of snow removal insurance. Many insurers provide combined coverage options designed specifically for businesses that operate in landscaping during the warmer months and snow removal during winter.
How important is commercial general liability insurance for snow removal businesses?
Commercial general liability (CGL) provides essential protection against the risks of third-party bodily injury and property damage that can happen during snow and ice management and result in lawsuits.
How much CGL insurance do snow removal operators need?
For snow removal companies, the recommended coverage limits for commercial general liability insurance typically start at $1 million per occurrence and $2 million aggregate. Many contractors choose higher limits ranging from $2 million to $10 million depending on the size of their operations, contracts, and client requirements. Speak to a Western Financial Group business expert about the liability insurance your snow removal business needs.
Should a snow removal business hire insured subcontractors?
Yes, a snow removal business should only hire subcontractors who are properly insured with their own commercial general liability insurance. For example, if a subcontractor causes property damage or bodily injury, their insurance can cover claims, protecting your snow operation from being held financially responsible. Note that many clients require proof that subcontractors have commercial general liability insurance.
