Insurance for snow removal contractors is essential due to the unique risks involved in the industry. Snow removal operations often take place under challenging weather conditions, which increases the likelihood of accidents, property damage, or even injury. Whether it’s a slip-and-fall incident involving a third party, damage to a client’s property, or an accident with snow removal equipment, these risks can lead to costly claims. Without proper insurance coverage, contractors may face significant financial burdens that could jeopardize their business. Having a well-structured insurance program ensures that snow removal businesses are protected from these unforeseen liabilities, allowing them to focus on providing their services confidently and efficiently.

The Importance of Insurance for Snow Removal Contractors

Snow removal contractors face numerous risks that make having the right insurance crucial for their business. Working in hazardous conditions often leads to accidents such as slip-and-fall incidents, vehicle collisions, and equipment breakdowns. These can result in costly claims, whether they involve third-party injuries, damage to clients’ properties, or equipment failure. Slip-and-fall accidents are particularly common when surfaces like sidewalks and parking lots aren’t fully cleared, leading to potential liability claims. There is also a risk of damaging clients’ property—such as driveways, landscaping, or structures—during snow removal operations.

Proper insurance coverage not only protects contractors from the financial consequences of these risks but also ensures their business continues to operate smoothly, even in the face of unexpected incidents. Comprehensive insurance provides peace of mind, safeguarding both contractors and their clients while enabling them to maintain a high standard of service. For underwriters, understanding these common claims and risks is vital in determining appropriate coverage levels, ensuring the contractor is adequately protected against industry-specific exposures.

An Insurance Program for Snow Removal Contractors

Ferrari & Associates has extensive experience providing insurance for snow removal contractors, helping them set up comprehensive commercial insurance programs and bonding facilities. However, the severity and frequency of claims have made this sector challenging, leading to rising costs and limited availability for Commercial General Liability (CGL) insurance.

Recently, Ferrari & Associates successfully arranged commercial insurance for a large snow removal contractor. Based on this recent experience, and to help our clients understand what insurers look for, we asked our partner insurers to share their insights. Here are the main factors they consider when underwriting snow removal businesses:

Insurance for Snow Removal Contractors – What Underwriters Are Looking For

1. Scope of Services

Clearly define the range of snow removal services your business provides. This can include snow plowing, salting, de-icing, and sidewalk clearing. The scope of services helps insurers assess the specific risks involved, allowing them to tailor the coverage to fit your needs.

2. Risk Management Practices

Detail your safety protocols and risk management practices. This might include regular equipment maintenance, employee training on safe snow removal techniques, and loss prevention strategies. Highlighting proactive risk management measures can help lower your premiums and improve the overall quality of your coverage.

3. Client Contracts and Agreements

Provide sample contracts or service agreements that outline terms of service, responsibilities, and liabilities. These documents help insurers understand your contractual obligations and how your business manages client relationships and risk allocation. Proper contracts can demonstrate responsible business practices, which insurers value.

4. Equipment and Vehicle Information

Include details about the types and values of equipment and vehicles used in your snow removal operations. This includes snowplows, salt spreaders, and other machinery. This information helps insurers evaluate risks related to equipment breakdowns or accidents involving company vehicles, ensuring the appropriate coverage is in place.

Talk to an Insurance for Snow Removal Contractors Expert

Contact our experts today to learn how Ferrari & Associates can improve your insurance program and assist in arranging any required Performance and Labour and Material Bonds.

Mike Di Pinto
Vice President of Construction Insurance
(647) 824-8410
mdipinto@ferrariinsurance.ca

Mike Di Pinto is a special guest expert blogger. He is the VP of Construction Insurance with Ferrari & Associates and has extensive knowledge and experience working with and finding insurance for snow removal contractors.

*The information provided on this page is for information purposes only and should not be taken as insurance advice. For actual insurance advice, please contact Ferrari & Associates at 1-888-467-8989