I remember a few years ago when we had a freak snowstorm in October, crossing my fingers and hoping that if you’re a snow plow contractor in New England, you’re prepared for heavy winter snowfall. It’s almost time for the snow plowing season, so I’m praying to Mother Nature and hoping your plows are ready to go!
And if that’s the case, you’re also wondering if you’ve got the right insurance in place to cover your snow plow operations.
At Insurance Berry, we have answered these questions many times over the years and insured thousands of contractors. Let’s review what snow plow insurance is and how it affects the cost of insurance. Before you know what you need to plow the road, let us help you understand.
What is snow plow insurance?
It is important to note that unless you already have a general liability policy in place for your contracting operations, coverage specifically endorsed to cover snow plow operations would not automatically be included. We will discuss this in more detail in a minute, but it is also important to mention that your policy will provide coverage for any property damage or bodily injury caused by your plowing activities. Therefore, it is necessary to have a general liability policy in place to cover your snow plow operations.
Do you provide snow removal services for residential driveways, commercial properties, parking lots, residential streets/roads, or highways?
It’s enough to spin your head. It changes every year. Some will allow you to do the occasional driveway for a neighbor while others won’t. Some will allow you to do the occasional driveway for your home or a neighbor. Some insurance companies also put restrictions on the size of parking lots that you can plow. Some will allow you to do the occasional driveway for your home or a neighbor while others won’t. Other insurance companies prefer contractors who only plow highways. Some insurance companies are comfortable offering liability coverage to contractors who plow roads and streets but not commercial parking lots.
It is important to identify all potential operations ahead of time so that you can be sure everything is covered before the first snowflake falls. In addition to this, your general liability policy may have a snow plow exclusion, which may result in limited coverage.
If you are going to be hired to clear snow for a city or town, it is probable that you will be requested to present an insurance certificate to confirm that you have sufficient coverage. Additionally, you may be asked to designate the city or town as an “Additional Insured”. Prior to commencing any work for a town, make sure to ascertain the specific requirements. There may be a fee associated with this.
Which vehicle will you be utilizing to plow – personally possessed or possessed by the enterprise?
Here’s where things become fascinating….And I discover it optimal to utilize illustrations.
Regardless of whether you have a personal auto policy or a commercial business policy, any harm to your vehicle would be prioritized and included.
However, it is known that this is something that can only be purchased on a general liability policy, where “operations” completed by you are the only ones that can be covered. It is important to consider what could happen after you are done with plowing.
Would you like coverage for any harm to the plow itself?
If your truck has collision and comprehensive coverage and the plow is connected to it, any harm to the plow will be included in your Massachusetts auto policy’s coverage for physical damage.
If you want full replacement cost coverage on specialized equipment, you would need a separate equipment insurance policy that would apply to any claim that should happen.
To acquire the distinct policy for replacement cost equipment on your automobile policy, you can revise the values of the plow and any extra equipment by presenting a duplicate of the receipt.
Will you offer extra snow clearing services – such as pathways, footpaths, or rooftops?
If you are getting your roof repaired, your insurance agent will discuss the options to offer additional plan services, if any, which will be clearly identified to ensure that you are sure. Typically, the costs of additional insurance services for snow removal can result in additional expenses.
I’m thinking about snow plowing for business, am I covered?
Before you make a decision, you may find it helpful to know a few specifics about the snow removal services offered here. It is not very likely, but it is possible.
Once you have ironed out the details of your snow plowing operations by answering the above questions, you can determine what type of coverage you may need and what you already have.
Let’s delve further into how the responses to these inquiries may impact the insurance policies you will require.
Do you have any fees for your services?
If you have a personal auto policy but your rating would change to “business use” which would increase your premium, then you may be considered to have business exposure and we may charge you for our services. However, if you plan to plow a few driveways just to be a good neighbor, it may seem like a silly question but it’s still important.
Will you be polishing or applying any surface treatments?
The following question leads us to this point. Typically, specialized equipment attached to your trucks may require additional insurance. Furthermore, if someone slips or falls in the area that you have treated, you could be held responsible for their injuries. It is important to note that road treatments can create slippery conditions.
Are you planning on recruiting new staff members?
Many contractors will be hired to cover the various shifts of plowing snow during the winter months, so it is important to check the driving records of those new employees to ensure that they are capable and willing to do what you have planned.
Prior to the start of employment, employees/applicants should note that having multiple citations or moving violations may result in their policy insurance being excluded. To determine whether an individual is an acceptable driver for insurance coverage, an indication can be provided by checking their driving record. The potential new hire can order a copy of their driving record online, which costs $20 and is a true and attested public record in Massachusetts.
We’ve Got You Covered
Plowing during the winter months can be a great additional source of income. However, it can also come at a cost, especially if you make an unprotected left turn. Whether you’re an individual or a business, plowing during the winter months can provide a great additional source of income.
At Berry Insurance, we understand that winter is a highly profitable season for your business. We want to help you keep the profits in your pockets by avoiding any potential claims and obtaining proper protection. Fill out our quote form today or give us a call to get started on protecting your business by plowing snow!
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