Snow Removal Insurance

Help your business weather the storm with a deeper understanding of commercial insurance for snow removal – because Mother Nature doesn’t hibernate for the winter.

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Snow Removal Insurance

Shoveling off the inevitable wintry blanket can be as vital as it is challenging for Canadian businesses.

Snow removal requires a unique blend of skill, equipment, and determination to keep your commercial property safe and accessible during the colder months.

That’s why it’s essential to understand both the benefits and responsibilities that come with managing snowfall on your premises.

By diving into the various techniques, best practices, and potential liabilities associated with this frosty task, we’ll champion you as a winter warrior and aid in safeguarding your business from the whims of the weather.

Snow removal, often referred to as snow clearing, is the process of eliminating accumulated snow from roads, sidewalks, driveways, parking lots, and other surfaces in order to maintain accessibility, safety, and efficient traffic flow.

It generally involves the use of specialized equipment, such as snowplows, snow blowers, and even manual snow shovels, as well as the strategic application of deicing agents to combat ice buildup.

In a broader sense, snow removal plays a crucial role in minimizing hazards and liabilities for both residential and commercial property owners while ensuring that daily life can continue despite winter’s challenges.

Snow removal insurance typically falls under the umbrella of commercial insurance, with coverage varying depending on the individual policy.

Some specific insurance products that may be relevant for businesses engaged in snow removal or seeking coverage for snow-related hazards include:

  1. Commercial General Liability (CGL) insurance: This type of policy generally covers bodily injury and property damage resulting from snow removal operations, offering protection against potential claims and lawsuits.
  2. Commercial Auto insurance: Vehicle accidents can occur while operating snow removal equipment, so commercial auto insurance provides coverage for any damages or injuries sustained as a result of these incidents.
  3. Inland Marine insurance: For companies needing protection for their snow removal equipment, inland marine policies can cover the cost of repair or replacement in cases of theft, damage, or accidents.
  4. Workers’ Compensation insurance: This policy is an essential aspect of risk management for businesses with employees on the job during snow removal tasks, covering medical expenses and lost wages due to work-related injuries or illnesses.

Keep in mind that insurance policies can vary significantly in terms of coverage, exclusions, and limits, so it’s vital to consult with a knowledgeable insurance professional to ensure you choose the appropriate products for your specific snow removal needs.

The cost of snow removal insurance can depend on numerous factors and vary significantly from one policy to another.

While it’s difficult to provide precise figures, some aspects that may influence your premium include:

  1. Type of coverage: Selecting more comprehensive coverage, higher limits, or lower deductibles may result in increased premiums. More basic packages may be more affordable, but businesses should ensure their policy meets their specific needs.
  2. Business size and operations: Larger snow removal businesses with more employees or extensive equipment may face higher costs due to the increased exposure to risk. Smaller businesses may see lower premiums due to their smaller scale.
  3. Location: Businesses operating in regions with harsher winters or higher snowfall may face higher insurance costs than those in areas with milder weather conditions.
  4. Claims history: Insurers typically factor in a company’s claims history, which reflects the frequency and nature of past incidents. A clean claims record typically leads to lower insurance rates, while businesses with a less favorable history may see increased premiums.
  5. Risk management measures: Implementing precautionary procedures and safety measures to reduce risks during snow removal operations may help lower insurance costs by demonstrating a commitment to safeguarding operations and mitigating potential hazards.

To obtain an accurate quote tailored to your snow removal business, it is crucial to consult a professional insurance broker or agent who can assess your unique risks, coverage requirements, and provide personalized advice.

They can help you secure the optimal insurance policy at a competitive price point.

Snow removal insurance is essential for businesses and contractors engaged in a wide range of activities related to managing snow and ice formation.

This insurance coverage protects from damages and liability issues that could arise from accidents, property damages, or injuries during snow removal operations.

Broadly speaking, snow removal insurance is required by:

  1. Snow removal contractors: This includes both large-scale commercial snow removal companies and small, owner-operated businesses that offer snow management services.
  2. Property management firms: Companies that are responsible for the maintenance and upkeep of commercial, residential, or municipal properties generally require snow removal insurance.
  3. Landscaping businesses: Since many landscaping companies offer snow removal during winter months, it’s important they have coverage for this specific activity in addition to their general liability policy.
  4. Construction companies: In certain regions or during winter construction projects, snow removal may be an added responsibility, necessitating appropriate insurance coverage.
  5. Retail businesses: To ensure safe access for their customers and employees, retail businesses with onsite parking or sidewalk access might contract with or operate their own snow removal services, making it important to carry this type of insurance.

Some specific examples of businesses that may require snow removal insurance include:-

  1. Snowplowing businesses operating trucks equipped with snowplows
  2. Ice management companies focusing on ice melting and deicing services
  3. Sidewalk shoveling and snow-blowing businesses
  4. Companies offering roof or gutter snow removal
  5. Municipal organizations responsible for snow and ice management on public roads and walkways
  6. Commercial complexes such as shopping centers and office buildings that have internal snow removal teams

Even if a business does not directly offer snow removal services, if they undertake these activities as part of their operations, having snow removal insurance is essential to reduce risk and potential liabilities.

Ultimately, it’s crucial for any business in these industries to consult a professional insurance broker or agent to customize their coverage and ensure adequate protection against the unique risks presented by snow removal services.

Some similar businesses that need insurance are:

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Common claims scenarios for Snow Removal Insurance

Problem: Snowplow Damage to Property: During a routine snow removal operation, a snowplow accidentally damages a client’s fence, causing significant repair costs.

Outcome: The snow removal business’s insurance policy covers the costs of repairing the property damage, relieving the business of the financial burden and maintaining a positive relationship with the client.

Problem: Slip and Fall Accident: A customer slips on an icy patch near the entrance of a retail store, despite recent snow removal efforts. They sustain injuries and decide to sue the store for negligence.

Outcome: The store’s snow removal insurance helps cover legal defense costs and potential settlement payouts, saving the business from financial hardship while protecting its reputation.

Problem: Employee Injury during Snow Removal: An employee of a landscaping company is injured while clearing a sidewalk of snow and ice during a particularly harsh winter storm.

Outcome: The company’s workers’ compensation insurance and snow removal insurance work in tandem to cover medical expenses, rehabilitation costs, and lost wages for the injured employee, ensuring their recovery and safeguarding the business against any additional liability claims.

“Insurance is like a safety net that helps you bounce back when life throws you a curveball.”

— Jack Prenter

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About The Author

Jack Prenter is the founder of DollarWise. With an extensive professional background in private equity and insurance, he's the Head of Partnerships at Nexus Mutual and previously led their investment committee. He studied Economics at the University of Nottingham. Jack is now based in Toronto, Ontario.