How to Protect Your Winnipeg Snow Removal Business

What You Need to Know About Snow Removal Insurance

September 3, 2024

You clear driveways, sidewalks, and parking lots after snowstorms. Your Winnipeg snow removal business is essential to getting through a Manitoba winter.

Clearing snow can come with risk, though. You need to protect your Winnipeg snow removal business with the right insurance.

Here your top questions answered about snow removal insurance:

1. What if damage my customer’s garage when I’m clearing their driveway?

Commercial general liability insurance (CGL) helps protects your snow clearing business if you cause third-party property damage – damage to a customer’s property. Should your business be named in a lawsuit, this type of insurance could cover medical expenses and legal fees, regardless of whether you win or lose the lawsuit.

CGL insurance also covers third-party bodily injuries. For example, your client could slip and fall on ice after you’ve cleared snow, get injured, and then sue you as the snow removal contractor.

It’s recommended that you have at least $2 million in CGL coverage and a higher amount would not be unusual. Without commercial liability insurance, you would be responsible for paying any liability costs.

2. Are subcontractors covered under my snow removal insurance?

When you add a subcontractor to your snow removal insurance policy, it ensures that you cover them for the work that they perform only for you.

If you are an independent snow removal subcontractor, it’s recommended that you buy commercial general liability insurance for yourself to ensure you always have coverage, even when an employer does not cover you.

Of note: Consider Hired and Non-Owned Insurance: If you have contractors out plowing on your behalf, this protects commercial vehicles you hire and any non-owned vehicles used.

3. What happens if my snowplow breaks down during work?

Equipment breakdown insurance protects your snow removal equipment from a mechanical breakdown or an electrical issue that is sudden or accidental. Wear and tear is not covered. This type of insurance covers the costs to replace equipment.

4. How much does snow removal insurance cost?

It can be expensive because of the specific risks the snow removal industry brings, such as slip and fall injury claims.

The price of your snow removal insurance will also depend on your experience and the size of your Winnipeg snow clearing business. Are you clearing snow in a location that receives a lot or very little snow? What is your revenue and how many employees do you have?

Each city or municipality may have its own bylaws about snow removal. You may be asked to prove that your snow removal business has enough insurance before you can become a licensed snow removal contractor.

5. My snowplow was damaged after an accident. Does insurance cover it?

Your commercial auto insurance coverage in your snow removal insurance package can help cover this cost. This type of insurance helps cover expenses in case of accidents, repair and replacement for theft or vandalism, and related legal fees.

Tips for safe snow removal

If you’re working overnight, make sure that you are well rested.
Avoid wearing ear buds or listening to loud music so that you are fully aware of your surroundings.
Stay alert and aware of any pedestrians or cars around you to avoid a potential accident.

Ask your Wyatt Dowling business insurance expert to get your snow removal contracting business the right insurance at the right value for you.