Removing snow and ice comes with several unique risks that can threaten the survival of your business at any moment. But with the right snow removal insurance, your company can live a long and happy life. Don’t know where to start? No problem; we have years of experience connecting businesses like yours to the country’s leading insurance providers!
Below, you’ll find out more about snow removal policy packages and how we can help you secure the best coverage at attractive prices.
Insurance Coverage for Snow Removal Contractors
Canadian communities rely on snow removal contractors like you to transform perilous locations into safe living conditions. The demand for your services is increasing, and therefore, so are your risks of experiencing lawsuits.
With that in mind, it makes sense to protect your business from such claims with effective insurance policies. At LiabilityCover, we’re well-versed in connecting snow removal contractors to the leading insurers in the country.
We aim to make insurance as understandable as possible, so you can continue running a thriving business for years to come.
What Is Snow Removal Insurance?
Snow removal insurance is a comprehensive policy bundle that withstands the uniquely high risks associated with snow and ice removal. It’s vital to running a long-term successful snow removal business.
When acquiring the insurance, your business size, service-related risks, and location are considered. For instance, a landscaper who offers occasional snow removal services in Victoria will need less coverage than the same business in Woody Point, Newfoundland.
We can help you obtain the insurance you need to protect your business from third-party property damage, bodily injury, and even equipment breakdown.
Common Real-World Claims Examples
For a better understanding of how snow removal insurance can help your business, familiarize yourself with the real-world examples below:
Example One: Property Damage Claim
You are clearing a residential neighbourhood. Unfortunately, you accidentally plow over somebody’s front lawn and significantly damage it.
The homeowner sues you for property damage and is successful. Thankfully, your commercial general liability insurance policy covers the repair costs, equalling $20,000.
Example Two: Employee Vehicle Damage Claim
During a dangerous storm, you ask your employee to attach a plow to the back of their truck. As they make their way to the next job site, their truck skids on black ice, causing an accident.
Your employee is deemed at fault for the accident. Fortunately, your non-owned automobile policy endorsement on your CGL insurance pays for the repair of both vehicles, totalling $65,000.
Example Three: Equipment Theft Claim
You park at your next job site. While parked, somebody steals a few of your walk-behind spreaders. Since you have a huge project with a new client starting that same day, you’re forced to rent tools to begin the job.
Afterward, you claim on your tools and equipment insurance policy. Your insurer covers the costs of replacing your equipment and the rental expenses, equalling $10,000.
What Does Snow Removal Insurance Cover?
While every company’s insurance requirements differ, most snow removal coverage bundles come with the following policy types:
Commercial general liability insurance, or CGL insurance, is the most common coverage for snow and ice removal businesses.
It protects you from claims such as third-party bodily injuries or property damage. If your company is named in a lawsuit, your CGL policy kicks in to help cover medical fees and legal costs, no matter the lawsuit’s outcome.
If you employ people, it’s worth noting that the coverage limit you select applies to your entire business, not individuals. To make sure all your staff members are covered, you can increase your limit or request they purchase their own liability policies.
Likewise, as a snow removal subcontractor, you need to ensure you’re covered when your employer cannot. Therefore, buying CGL coverage is a wise business decision as it allows you to work in multiple locations.
Commercial auto insurance is similar to personal car policies, but it’s designed to protect all the vehicles your snow removal company owns or leases. Your business vehicles must be covered under the policy — just one accident can cause harsh financial consequences.
As a general rule, you need commercial auto insurance if:
- Your employees use the vehicle.
- You use an automobile solely for work.
- Your vehicle is registered in your business name.
- Your vehicle has equipment installed (highly likely as a snow removal business).
- You deliver products, clients, employees, or materials using an automobile.
Equipment and Tools Insurance Coverage
In your line of work, your tools and equipment are vital to the success of your business — without them, you can’t work! So, it becomes necessary to insure them.
Equipment and tools insurance provides coverage to repair or replace damaged or lost accessories, tools and equipment. Anything valued under $1,500 is considered a tool in the insurance world, whereas anything over $1,500 is equipment.
Some contractors choose to add the leased, rented, and borrowed equipment endorsement to the policy. As the name suggests, it financially protects you from the damage to or loss of equipment and materials you do not own.
Equipment Breakdown Insurance Coverage
The policy above protects your items from external disasters like theft or fire. Equipment breakdown insurance, however, protects your equipment should it break due to an internal malfunction like an electrical or mechanical problem.
For instance, if your snow plow breaks due to a faulty hose, your equipment breakdown coverage gives you the money to fix the problem.
Legal expense insurance (otherwise referred to as LEI) is designed to cover you against legal costs in common business disputes. It also allows you to access a lawyer and advice for free.
Usually, the policy pays for pleadings, pre-trial mediation and arbitration, settlements, investigations, discovery, and appeals. But there are two types of legal expense insurance to choose from:
- BTE (Before the Event) insurance — You purchase this type of insurance to cover a case before it happens. Normally, the covered fees are:
- Court costs
- Lawyer’s fees
- Oppositions legal costs if you’re ordered to pay them by the court (known as adverse costs)
- ATE (After the Event) insurance — It protects you in cases where a claim has already occurred (i.e., you’ve lost the case). The policy specifically pays for:
- Disbursements incurred by your lawyer
- Adverse costs required under court order
Cyber liability insurance isn’t the first policy you’d think about acquiring as a snow removal business. However, at least a portion of your work-related activity is likely conducted digitally, making the coverage necessary.
The policy is designed to protect your business from cyber events such as attacks and data breaches. Specifically, it covers the costs of the following:
- Incident response
- Identity theft
- Cyber extortion
- Legal, breach, and forensic management
- System damage and restoration
- Reputation recovery
- Social engineer (optional)
- Identity theft
You can also invest in cybercrime insurance alongside cyber liability, which protects you from hacking, phishing, and similar digital crimes.
Hired and Non-Owned Vehicle Coverage
You can attach this policy rider to your commercial general liability insurance. The coverage is designed to protect automobiles used in relation to your business that you don’t lease, borrow, rent, or own.
For instance, your employee attaches a snowplow to their truck and crashes. Your hired and non-owned vehicle coverage provides the money needed to repair the truck.
Do You Need Insurance As a Snow Removal Contractor?
Any business or individual must protect their businesses with a comprehensive snow removal package, even if snow removal is their seasonal service (e.g., general landscapers may offer snow removal).
Clients could file a claim against you for a staggering two years after an incident. Therefore, even if you aren’t operating when the claim is made, you still require coverage.
Snow removal insurance doesn’t just protect you from financial loss, but it can also help you secure jobs. Planners and project managers may request proof of insurance before they make a hiring choice.
How Much Does Snow Removal Insurance Coverage Cost?
Low-risk snow removal operations require a basic CGL policy with a limit of $1 million should anticipate spending around $1,250 per month. As the risk level increases, so does the cost of your insurance.
Premiums tend to be more expensive than other business types as the snow removal industry is a particularly high-risk sector. There are countless opportunities for claims, the most common being slips and falls.
With that said, many factors influence snow removal insurance premiums, including:
- Your business size — If you run a particularly large snow plow business, you’ll be taking on more jobs than smaller companies. Therefore, you are exposing yourself to increased risks, which boosts your premium price.
- Your business revenue — While generating a lot of money is a fantastic indicator of success, it does increase the cost of your insurance. Why? Because there’s more at stake during third-party claims of property damage or bodily injury. Claimants’ lawyers tend to encourage them to request more in damages when they know your revenue can take the hit.
- Your years of experience — With more experience comes a decreased chance of making mistakes. Thus, you benefit from lowered instance premiums.
- The number of employees — Employing more people gives your business more opportunities to experience liability claims. Ultimately, it raises the price of your comprehensive snow removal insurance package.
- Your insurance claims history — A clean business insurance record shows insurers you aren’t as likely to make a claim in the future, lowering the insurance cost.
- Your operation location — If you operate in an area that experiences regular snowfall, expect higher insurance premiums than businesses in areas with occasional snowfall.
How Do You Get Snow Removal Insurance in Canada?
With LiabilityCover, acquiring a top-quality snow removal insurance package is simple. We’ve streamlined our process over the years so you can continue focusing on running your business without worrying about insurance.
Here’s how it works:
- Fill in our secure online inquiry form.
- One of our team members analyzes your insurance requirements.
- We will connect you to one of Canada’s top snow removal insurance providers.
- Your designated broker or agent contacts you to help you obtain the comprehensive coverage you require.
Why Choose LiabilityCover?
LiabilityCover takes the confusion out of acquiring insurance. We accurately determine your coverage needs based on your inquiry form answers. Once you’ve completed your request, we do the rest!
Our excellent relationships with Canada’s top insurance providers ensure you get the best deal. We’ll connect you with an insurer who specializes in providing coverage to snow removal businesses like yours.
In a nutshell, LiabilityCover affords you the knowledge and time you need to completely protect your business. So let us do the hard work by completing our secure form now.
Frequently Asked Questions
How Can You Avoid Snow Removal Business Insurance Claims?
Keeping the costs of your snow removal insurance down is essential. One of the best ways to do that is to avoid any claims by following our simple tips and tricks below:
- Spend time maintaining your tools and equipment correctly
- Store all your tools and equipment in a secure location
- Make sure any employees are trained properly
- Create a non-ambiguous contract
- Take before and after photos of your job sites
Which Canadian Insurers Does LiabilityCover Work With?
We work with the country’s leading insurance providers, including the following:
- AM Fredericks Underwriting Management Ltd.
- Ace Insured
- Beacon Underwriting Ltd.
- First Media
- Elliott Special Risks Ltd.
- Eagle Underwriting Groupu Inc.
- Coast Underwriters Limited
- Cowan Insurance Brokers
- Chubb Insurance
- Chutter Underwriting Services
- Chesterfield Canada, Inc.
- CFC Underwriting
- Berkley Canada
What Other Business Types Can LiabilityCover Help Acquire Insurance?
We’ve helped many contractors and business professionals receive the insurance they need. Some of the trades we specialize in are as follows:
- Construction contracting
- Collection agencies
- Employment agencies
- Event organization and planning
- Home inspection
- Holistic professionals
- Interior designing
- Life insurance agencies
- Mortgage brokerages
- Paralegal investigation
- Private investigation
- Property management
- Travel agencies
- Web development and design