Is Your Snow Removal Insurance Up to Date?

You dig us out from snow and ice both day and night. You know your snow removal job can be risky at times. It’s essential to have snow removal insurance that protects you from accidents, mishaps, and third-party lawsuits.

Whether you’ve been in the snow removal business for years or are just getting started, now is the time to make sure that your insurance coverage meets your needs and is up to date.

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Why insurance matters for snow removal businesses

From accidents involving heavy machinery to slip-and-fall incidents on freshly cleared pathways, the liabilities can be numerous. Even a minor incident can lead to costly legal battles or compensation claims that could cripple your snow removal business financially.

This is where having the right insurance coverage becomes not just important, but essential.

Insurance for snow removal businesses provides a safety net that protects you from financial losses due to property damage, bodily injury, and other risks associated with your operations. It also gives your clients peace of mind, knowing that they are working with a fully insured and responsible service provider.

Is your snow removal insurance up to date?

Assessing your current coverage

Before the snow starts to fall, take some time to review your current insurance policy. This review should be thorough, looking at every aspect of your coverage to ensure that it still meets your business needs and you have enough protection against any lawsuits.

Consider the following insurance coverages:

1. General liability insurance: This is the cornerstone of your insurance policy. It covers third-party bodily injury and property damage claims, which can be common in the snow removal industry. For example, if someone slips and falls on a walkway you’ve just cleared, 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 sufficient to protect your business.
2. Commercial auto insurance: Your snowplows, salt spreaders, and other vehicles are the backbone of your business. Commercial auto insurance covers damages to these vehicles, as well as liability if one of your drivers causes an accident. With the winter weather increasing the likelihood of vehicle accidents, it’s important to check that your coverage is up to date.
3. Equipment and Tools Coverage: Beyond vehicles, your business likely 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.
4. Professional liability insurance: 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 cover the costs of defending your business legally against such claims.
5. Hired and non-owned vehicle coverage: This type of coverage is designed to protect 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.

Do I need to add subcontractors to my snow removal insurance?

When you add a subcontractor to your 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, consider buying commercial general liability (CGL) insurance for yourself to ensure you always have coverage, especially when an employer does not cover you.

Emerging risks and industry changes

The snow removal industry is constantly evolving, with new technologies and changing regulations that can impact your business. For instance, eco-friendly de-icing products are becoming more popular, and some areas may even require their use. While these products are better for the environment, they may also present different risks that your current insurance doesn’t cover.

The increasing use of technology, such as GPS tracking and automated systems, in snow removal operations introduces new vulnerabilities, particularly concerning cyber risks. If your business uses these technologies, it may be worth considering cyber liability insurance, which covers damages related to data breaches and cyber-attacks.

The legal landscape is also shifting. Some areas are implementing stricter liability laws for snow removal companies, making it easier for clients to file claims against service providers. Keeping abreast of these changes and adjusting your insurance accordingly can help protect your business from potential legal pitfalls.

How to refresh your insurance coverage

1. Work with an experienced insurance broker: An insurance broker who specializes in snow removal businesses can be an invaluable resource. They understand the specific risks of your industry and can recommend the most appropriate coverage for your needs. They can also help you navigate the complexities of insurance policies, ensuring that you’re not underinsured or paying for unnecessary coverage.
   
   Western Financial Group is a national insurance broker that has partnered with Canada’s leading insurers to meet your business insurance needs. 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.
   
   
2. Update your risk assessment: Conduct a thorough risk assessment of your business operations. Identify any new risks that have emerged since you last updated your snow removal insurance and assess whether your current coverage adequately protects against these risks. This might include changes in the size of your business, new services offered, or different types of contracts you’ve taken on.
3. Consider seasonal adjustments: Some insurance policies allow for seasonal adjustments, which can be particularly useful for snow removal businesses. Since your operations are more intensive during the winter months, you might want to increase your coverage during this period and scale it back in the off-season. Discuss this option with your broker to see if it’s a good fit for your business.
4. Review client contracts: Ensure that your insurance aligns with the contracts you have with your clients. Some clients may require you to have specific types of coverage or higher limits, particularly for commercial contracts. Failing to meet these requirements could result in legal disputes or loss of business.
5. Budget for premium increases: If you decide to increase your coverage, it’s likely that your premiums will also increase. While this might seem like an added expense, consider it an investment in the protection of your business. Work with your insurance broker to find a balance between comprehensive coverage and affordable premiums.

Refreshing your insurance coverage is a critical step in preparing your snow removal business for the winter season. By ensuring that you have comprehensive and up-to-date coverage, you can focus on what you do best—keeping roads, driveways, and walkways clear of snow and ice—without worrying about the financial risks.