Get a Snow Removal Insurance Quote

What is snow removal insurance?

When it comes to clearing driveways, sidewalks and other areas during the winter, snow removers are ready to help. Snow remover insurance is an umbrella term for a range of policies designed to protect snow removal contractors from specific risks while on the job. For instance, if an accident occurs, such as damaging a client's driveway, snow removal insurance will help cover the costs.

Snow removal insurance typically includes general liability for accidents and coverage for tools and equipment. Many in the industry also choose to get additional protection for assets like their business vehicles.

Who needs snow removal insurance?

Those in need of snow removal insurance include:

• Independent snow removers: These are solo experts in the snow removal field, working as sole proprietors or freelancers.
• Snow removal businesses: These companies provide a variety of snow clearing and maintenance services to residential and commercial properties.
• Landscapers: Although landscapers are known to mostly work in the warmer months, those who offer snow removal as part of their services will also require snow removal insurance, as it presents different risks and requires equipment distinct from that used for conventional landscaping projects.

What does snow removal insurance cover?

Snow removal insurance typically covers these three main areas:

Commercial general liability insurance: Commonly referred to as CGL, this coverage is mandatory in some provinces, such as Ontario. It provides businesses with financial protection when it comes to lawsuits arising from property damage or bodily injury. For example, if you are removing snow for a client and damage their house with your snowplow, this could lead to a lawsuit. CGL insurance would then help cover your legal fees and repair costs. When selecting your coverage limit, you can opt to apply the coverage to all employees collectively or per individual. The latter option will result in higher premiums.

Professional liability insurance: Also known as errors and omissions (E&O) insurance, this covers claims related to professional errors or negligence. For instance, if while shoveling a sidewalk you forget to lay down salt on the cleared area and someone slips, professional liability protection will help cover costs resulting from a lawsuit.

Tools and equipment insurance: This is also called floater insurance and typically comes with a standard snow removal insurance package. It protects your tools, equipment and machinery from theft, loss or breakage.

Commercial auto insurance: This insurance will cover the vehicles you and your employees use for snow removal in case of accidents, theft or damage. For instance, if one of your plow trucks is involved in an accident while on a job, commercial auto insurance can help cover repair costs and liability claims.

What insurance add-ons are recommended for a snow removal business?

Though these add-ons are not mandatory, they are popular inclusions for snow removal contractors and businesses in Canada:

Commercial property insurance: This will protect your business in the event your physical assets are damaged. For a snow removal business, this could be your office or storage facility where you store your equipment, machinery and supplies. It can also include vehicles that are not on the road.

Business interruption insurance: This insurance protects your snow removal business from lost income due to unexpected disruptions, such as natural disasters, equipment breakdowns or other incidents that can halt operations. It can also help cover fixed expenses, like employee salaries and rent, ensuring your business can recover and continue running after the disruption.

How much does snow removal insurance cost in Canada?

The cost of snow removal insurance in Canada can vary based on several factors, including the size of your business, the scope of services, your claims history and the type of coverage you choose. Here are some general guidelines:

• General liability insurance: Typically starts at around $450 per year for a $2 million coverage limit.
• Comprehensive insurance packages: Can start at approximately $575 per year.
• Commercial auto insurance: If you use a vehicular snow plow to remove snow, your coverage still likely start at over $1,000 per year.

Please note that the cost for snow removal insurance varies from business to business. To see how much it costs to address your specific needs, get an online quote.

What factors determine snow removal insurance rates?

The price of snow removal insurance in Canada depends on several different factors:

Business equipment and property: The value and type of equipment you use can affect your insurance costs. More expensive or specialized equipment, like snow blowers, snowplows, snow pushers and tractors with snow attachments, will increase your insurance premiums.

Deductible: This is the amount you choose to pay out-of-pocket before your insurance covers the rest, and it influences your premium. For example, if your snowplow needs repairs that cost $3,000, and your deductible is $1,000, you will provide the first $1,000 and your insurance will cover the remaining $2,000.

Years in Operation: If you are running an established business with a solid track record and minimal insurance claims, you will often qualify for lower premiums compared to someone who is just starting out.

Type of services offered: A snow removal professional who exclusively works on driveways and sidewalks - and who doesn't require a vehicle - will pay far less than someone who clears roads with a plow, and therefore needs commercial auto insurance for their vehicle(s).

How does snow removal insurance work?

Snow removal insurance offers financial protection against unforeseen incidents. When you submit a claim, your insurer evaluates the situation and, if it’s covered, compensates you for the related expenses up to your policy’s limits. This helps you manage losses and keep your business running smoothly.

How to get the cheapest snow removal insurance quote?

To get the cheapest snow removal insurance quote in Canada, consider these steps:

Compare online quotes: Submitting information and receiving quotes from multiple insurance providers lets you compare the market and ensure you're getting the coverage you need for the lowest available price.

Increase your deductible: Choosing a higher deductible will lower your premium. Just make sure you can afford the deductible in case of a claim.

Maintain a good claims history: Insurers offer lower rates to businesses with fewer historical claims. You can implement different safety measures to reduce the likelihood of accidents that will result in claims that drive up premiums when it's time to renew your policy.

Ask about discounts: Some insurers offer discounts for things like paying annually instead of monthly, or for having a good safety record.