Snow Removal Insurance: A Guide to Coverage, Costs, and Risk Management

Do you need insurance for snow removal?

Yes, you need contractors insurance for snow removal to protect your business from potential risks and liabilities that can arise while performing snow and ice management services.

Snow removal insurance is designed to cover the unique risks you may face, like property damage, injuries, and vehicle accidents. Unlike standard business insurance, which might cover general liabilities, insurance for snow removal is tailored specifically for the types of hazards involved with snow and ice.

Plus, in most states, you’re legally required to obtain some form of insurance to operate a snow removal business. Commercial auto insurance, for instance, is legally mandated in most states for vehicles you use for the business. And workers’ compensation insurance is required in most states if you have employees.

Accidents happen. Clients can slip on an icy surface before you clear it, or your plow might accidentally damage a client’s property.

Snow removal insurance protects your business from lawsuits and financial loss in these situations. It acts as a blanket of protection, allowing you to focus on doing your job without worrying about legal issues. For example, if your truck knocks down a fence while plowing, the right coverage ensures you won’t pay for repairs out of pocket.

What your snow removal insurance policy should include

The amount and type of insurance for snow removal contractors will differ by state and the type of service you offer (residential or commercial), but typically you will need:

• General liability
• Commercial auto
• Tool and equipment coverage
• Workers’ compensation

General liability

General liability insurance is one of the most important types of protection for your business. It safeguards you from third-party injuries and property damage that may occur when you’re operating heavy equipment in unpredictable weather on client properties.

For example, if you accidentally plow over a mailbox hidden under the snow, or scrape a driveway, general liability coverage can cover the costs of repairs or replacement. Whether it’s a damaged fence, vehicle, or other property, you won’t have to bear these costs with this insurance.

If someone slips on an icy surface before you clear it or your plow damages property, snow removal insurance with general liability coverage will help protect your business from expensive legal and medical costs.

Commercial auto

Required by law in most states, commercial auto insurance is crucial for any snow removal business that uses vehicles for plowing, salting, or transporting equipment.

With commercial snow removal insurance, your vehicles are covered for accidents, damage, or liabilities while on the job. 

Plow trucks and other vehicles used in snow removal face higher risks, especially during extreme weather conditions. Like a collision with another vehicle or sliding off the road due to icy conditions. 

Commercial auto snow removal coverage protects your business by covering repair costs, medical expenses, or even legal fees resulting from an accident. You won’t be personally liable for damages. Instead, you can focus on your operations without setbacks.

Don’t forget proper vehicle documentation: Review and update your insurance before starting snow removal operations, especially if your vehicles are primarily used for other business activities, like landscaping. Adding a plow to a truck may void the current policy if it’s not accounted for. 

With commercial snow removal insurance, you’ll need to check that every vehicle you and your employees drive is properly documented and insured. Proper documentation and coverage help avoid any gaps that could leave your business unprotected.

Tools and equipment

Unexpected equipment issues can bring your business to a standstill. Snow plowing insurance with tools and equipment coverage protects your plows, salt spreaders, and other gear your business relies on.

If your equipment is damaged, stolen, or breaks down, you won’t be left paying out of pocket for repairs or replacements. It also protects you in case of theft, which is worth considering for businesses that store expensive equipment on job sites or in vehicles.

To ensure you’re fully covered, assess the value of your snow removal equipment. 

Under-insuring your tools could leave you without enough coverage in case of a major loss. Over-insuring, on the other hand, can lead to unnecessary premiums.

By having a clear inventory and proper valuation of your equipment, you can make sure your insurance is providing the right level of protection.

Workers’ comp

Required in most states (except Texas), workers’ compensation covers employee injuries that occur on the job. Whether it’s a slip on an icy driveway or an accident while using heavy equipment, workers’ comp provides financial protection for both your business and your employees.

This coverage is a big part of snow removal insurance. Medical expenses and lost wages will be covered if one of your employees gets hurt while working.

For employees, workers’ comp offers peace of mind. For example, if they slip on ice while removing snow and break their arm, workers’ comp will help pay for medical treatment and lost wages during their recovery.

For your business, it builds trust with your team and shows you care about their well-being. Even if you’re a solo operator, you might still consider getting workers’ comp to cover yourself in case of injury.

Landscaping and snow removal insurance: Combining coverage

If you run a business that handles both landscaping in the warmer months and snow removal in the winter, combining your insurance can be a smart move.

Landscaping and snow removal insurance is designed to cover both services, helping you streamline your coverage and save on costs. Whether you’re mowing lawns in the summer or plowing driveways in the winter, it’s important to have coverage that fits both aspects of your business.

Seasonal considerations

If you operate year-round, adapt your insurance coverage to account for the unique risks you’ll face in the different seasons.

Balancing your insurance needs for both seasons can help you avoid gaps in coverage. There are cost-effective strategies, such as adjusting your coverage based on the season or bundling policies. And these can protect your business throughout the year without overpaying when you’re not offering certain services.

Add-ons for snow removal

When running a dual-purpose business, tailor your insurance coverage with specific add-ons (known as endorsements), to cover your snow removal operations. These endorsements can offer extra protection for risks specific to snow removal.

Common endorsements include:

• Protection for your tools and equipment
• Commercial auto coverage for snowplows
• Enhanced liability for operating in hazardous weather conditions

Pro tip: Speak with an insurance agent to build a comprehensive policy that covers both landscaping and snow removal.

How much is snow removal insurance?

The cost of snow removal insurance can vary depending on the type of coverage you want, your business size, the location you work in, and your claims history or policy limits.

Here’s how that breaks down:

• Commercial auto coverage usually costs $1,000 to $3,000 per vehicle annually. This price can change based on the type and value of your plow vehicles, your driving record, and the number of vehicles you’re insuring.
• Workers’ comp usually costs $2,000 to $6,000 per employee every year. The price depends on how many employees you have, the type of work they do, and your claims history.
• Tools and equipment coverage, which isn’t required but recommended, is usually 1% to 3% of the total value of your equipment per year. So, if your equipment is worth $50,000, you might pay $500 to $1,500 annually.
• General liability coverage starts at just a little over $1 per day with our partner, Next Insurance. You can also find commercial auto insurance starting at $12.50 a month.

Getting a quote is the best way to find out exactly how much your commercial insurance will cost. You can get an exact quote in just a few minutes and do it completely online with Next.

Minimizing risks in snow removal operations

By taking proactive steps to minimize risks, you can avoid accidents and costly claims that might affect your snow removal insurance premiums.

Safety protocols

One of the most effective ways to reduce risk is by implementing strict safety protocols and regularly training your employees.

Snow removal often involves hazardous conditions, like icy surfaces and heavy equipment, so your team needs to understand how to operate safely. Providing ongoing training on equipment use and winter driving safety will help prevent accidents and injuries on the job.

Record keeping

Keeping detailed records of your operations is another important risk management tool. Documenting each job—including photos of cleared areas, the conditions before and after work, and any incidents—provides proof of your efforts to maintain safety.

This documentation helps protect your business in the event of a lawsuit or claim, as it shows you took all necessary precautions. Keeping records also helps you track your work and manage your insurance claims.

READ MORE: How to start a snow removal business

How to get snow removal insurance

Getting insurance is a crucial step in protecting your snow removal business. Here’s how to assess your needs and find the right coverage.

1. Assess your needs

Look at your snow removal operations to understand what specific coverage you’ll need. Consider the size of your business, the number of employees, and the equipment you use.

You’ll likely need coverage for your vehicles, tools, and protection against slip-and-fall accidents. Identifying all the potential risks will help you choose the right insurance, so you’re covered in case of any incidents.

2. Compare insurance providers

Once you know what coverage you need, it’s time to compare different insurance providers. Ideally, you want to talk to a provider that specializes in snow removal insurance. Or at least one that has experience working with similar businesses.

Get quotes from multiple providers to compare coverage options and pricing. Pay attention to factors like deductible amounts and coverage limits.

3. Work with an experienced agent

Working with an experienced agent can make the process of getting insurance for snow plowing much easier. A knowledgeable agent will understand the unique risks that your business will face and can guide you through the process of combining different coverages to create a comprehensive plan.

Next Insurance specializes in tailored, small business insurance, and offers a simple way for you to get snow removal insurance coverage.

The online process is quick, and you can immediately share your certificates of insurance with your clients to boost your brand and build their trust.

The content and information in this article were provided by Next Insurance.

Originally published December 2020. Last updated on October 9th, 2024.