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What is snow removal insurance?

Canadian winters can be hazardous, with snow and ice creating unsafe conditions on roads and sidewalks, and in parking lots. As a snow removal business, you play an essential role in keeping people safe, whether they are on foot or in their vehicles.

But what’s keeping your business safe?

Snow removal insurance is a custom policy that includes several coverages designed to protect snow removal contractors from third-party claims, employee accidents, or equipment failure.

What snow removal insurance includes

Though snow removal insurance policies can be customized to meet the specific needs of your business, most policies include the following coverages:

• Commercial general liability (CGL) insurance: CGL is essential for snow removal businesses across Canada. It covers claims of third-party bodily injury and third-party property damage caused by your work.
• Commercial property insurance: If you own an office, garage, storage facility, or any other business property, this insurance protects against theft, vandalism, fire, water damage, or natural disasters.
• Tools and equipment insurance: This coverage is crucial for tools and equipment used in snow and ice removal, ensuring they can be repaired or replaced if lost, stolen, or damaged.

Recommended add-ons for snow removal insurance

Enhancing your standard snow removal insurance with additional policies can offer extra protection. Common add-ons include:

• Equipment breakdown insurance: Covers costs for repairing or replacing broken equipment.
• Commercial auto insurance: Required for vehicles used for business, such as trucks, cars, and plows. Personal auto insurance doesn't cover commercial use.

You may choose to add an additional coverage not mentioned here, based on your own situation. To add coverage types to your policy, you'll have to speak with your insurance provider.

How much does snow removal insurance cost?

The cost of snow removal insurance varies, depending on the insurer and the level of coverage you choose. A standard general liability insurance policy with a $1 million limit starts at around $1,000 per year. However, policies with additional coverages will be more expensive, typically ranging from $1,000 to $3,000 annually for most snow removal contractors in Canada.

Factors that affect the cost of your policy include the types of properties you service, business size, location, vehicle value, tools and equipment value, experience, claims history, and coverage limits and deductibles. Different insurers assess risk differently, so getting an online quote can help determine how much your policy will cost you.

Common types of snow removal insurance claims

Understanding common claims scenarios can help you prepare:

• General liability: A client or third-party slips on ice that your business was hired to remove and holds you liable, suing you for medical costs. Commercial general liability insurance will cover the costs of the medical expenses, rehabilitation, and your legal fees.  
• Commercial property: Vandals break into your storage facility and damage the main door. Commercial property insurance can pick up the tab for repairing your storage building. 
• Tools and equipment: Tools left at a project site are stolen. The tools and equipment component of your insurance will cover the costs of replacing your lost tools.  

These are not the only situations that insurance will help you out with, but they represent some of the most common issues that snow removal contractors deal with. 

How to get the cheapest snow removal insurance

To find the cheapest policy that suits your needs, consider the tips below: 

• Consider your insurance needs: Carefully weigh up how much insurance coverage your need. It is possible to over-insure yourself beyond your needs or under-insure yourself and miss important protection. Balance your insurance and pay for exactly what you need.  

• Shop around: Comparing quotes from multiple insurance providers allows you to assess the market. Shop around to make sure you're getting the cheapest rate available.  

• Make your business insurance-friendly: Insurance companies like to see clients take steps to protect themselves. That may be demonstrable security measures on commercial property or full employee safety training.  Plus, having a claims-free history can earn you discounts.

• Bundle policies: You can bundle the multiple insurance products you need, such as general liability and tools and equipment coverage, and often receive a discount from the insurer.

• Increase deductible: Consider increasing your deductible to remove risk from the insurer. In return, the provider will lower the cost of your policy. However, make sure that you can afford to cover the deducible amount in case you need to file a claim.  

Snow removal insurance in Canada: what you need to know

Snow removal insurance is not always mandatory in Canada. However, if you use a plow, you’ll need commercial auto insurance for your vehicle. 

You might believe that because your vehicle is already insured that additional coverage isn’t required, but your vehicle won’t be covered by your personal auto policy when you use it for business. 

Even if your business focuses on private property that doesn’t require a plow, insurance remains a good investment. Without it, you can be left on the hook for sizable expenses if something goes awry.