Good news and bad news for snow removal contractors in Manitoba. Good news is you had an early season and made some money in October, bad news is it hasn’t snowed much since then. If you believe the Farmer’s Almanac, we are in for a snowy January. Even if you don’t believe in it, AccuWeather is predicting the same thing for Winnipeg and surrounding areas.
Due to the nature of the business, snow removal is a high-risk trade for liability lawsuits. That’s why it is important to have snow removal liability insurance. We’ll outline some of the reasons you need this for your peace of mind and some things contractors typically ask us when they are getting insured.
Snow removal insurance is a custom policy specially designed to protect you, a snow removal contractor, against common risks associated with your professional activities, such as slip-and-fall injuries or property damage.
Now, you might be a landscaper using snow removal to supplement your income in the off-season or you might specialize in snow and ice removal as your main gig. In both scenarios, snow removal insurance is a must have in your risk management strategy.
Your comprehensive snow removal insurance package begins with Commercial General Liability (CGL) insurance. CGL is the insurance policy you are probably the most familiar with, as it provides coverage for the liability issues most common to your business – bodily injury or property damage.
For example, when clearing snow off of a residential street, you accidentally drive over someone’s lawn, causing significant property damage, which leads the homeowner to sue your business. Another scenario is a client slips on a patch of ice your team was responsible for clearing in a commercial parking lot, breaks their wrist, and decides to sue. These and other scenarios are the reason you need to carry snow removal insurance as CGL will cover the cost of legal fees, medical expenses, and the cost to repair damaged property.
The nuts and bolts of the coverage is the commercial general liability, but there are other coverages you may want to talk to your broker about and add on to your policy.
Provides coverage for equipment and their accessories, the property of others in your care, and portable business tools from loss or damage, including theft.
Another form of coverage that protects your equipment. This policy covers the cost to replace or repair your equipment should it breakdown due to an electrical or mechanical issue, such as a snowplow that breaks down due to a blown hose.
Coverage designed to protect vehicles used in connection with your business that you don’t own, rent, lease, or borrow. For example, an employee uses their truck for business purposes and crashes it on a job site after losing control on some black ice. This type of coverage could cover the costs associated with repairing the truck.
This is a hard question to answer as it depends on many variables. We have an online quote you can explore, or you can talk to an online broker to ask questions and get a quote as well. Here are the major factors that will affect the price of your snow removal insurance in Manitoba.
What you do and where you do it has big implications on the price of these policies. If you just clear residential driveways and commercial lots your policies price will be much cheaper than if you clear city streets and public roadways.
How many years have you been doing this? If you are just starting out you are likely going to pay more for your insurance. Actuaries (insurance people that like numbers) have figured out that the more inexperienced you are the more likely you are to have accidents.
Do you have people working for you? The more employees you have, the higher risk exposure you are for the insurance company.
More income usually means more business. And more business usually means more liability risk. Insurance companies use this as a gauge to price your policy.
For a low-risk snow removal company primarily doing residential driveway clearing, your policy carrying a $2M liability limit would be around $600 dollars per year, depending on coverage limits selected.
You’re busy enough running your business to stress over insurance. That’s why we created buyer friendly insurance.