Snowplowing business insurance is one of the most challenging to find. When you do find options, it’s common for premiums or deductibles to be high. Mainly, this is because snow removal is considered “high risk” to insure. It’s due to a number of factors such as the following:
- The likelihood of accidents for both employees and third-party individuals
- The risk of viable lawsuits from slip and fall accidents
- The increasingly litigious environment
- The health risks faced by employees on a regular basis
- The high chance of property damage occurring in such a slippery, snow-covered environment
In this article, we’ll talk about how the above factors influence the availability and price of snow plowing business insurance. We’ll also talk about Bill 118 and its potentially positive impact on snow removal business insurance. Lastly, we’ll talk about your next steps.
Let’s get started!
What is Covered Under Snow Plowing Business Insurance?
Commercial general liability (CGL) insurance is a must for nearly all kinds of businesses. This goes double for high-risk businesses like snow removal.
CGL for snow plowing businesses provides coverage for the following:
- Physical injuries suffered by a third-party individual in relation to business operations
- Physical injuries suffered by a third-party individual within business premises
- Third-party property damage due to business operations
- Reputational/advertising injuries
However, insurance for snow removal businesses can go beyond commercial general liability insurance. Additional insurance coverage can be obtained for the following and then bundled with your CGL policy:
- Commercial property insurance
- Commercial auto insurance or fleet insurance
- Equipment and Tools insurance
- Workers’ compensation insurance
How Much Is Snow Plowing Business Insurance?
The average cost of commercial general liability insurance for snow removal businesses starts at around $55 per month. Additional coverage will also have additional costs. The starting price mentioned here is slightly higher than other high-risk industries such as roofing, home renovation, and so on.
In the next section, we’ll go into some risk factors that affect the pricing of snow removal. As we discuss these risk factors, you’ll also see why this slightly higher price is actually well worth it in the long run.
Factors That Make Snow Plowing High-Risk To Insure
1. The Likelihood of Accidents for Employees and Other People
One of the reasons why snow removal is considered a high-risk industry is the likelihood of slip-and-fall accidents. This is also one of the reasons that snow removal businesses are high-risk to insure.
The Canadian Institute for Health Information states that one-third of patients admitted to the E.R. suffered from slips and falls. And from this fraction, around 8,800 cases involved slipping on ice. The person slipping on snow or ice-covered concrete could potentially be your snow plowing employees or members of the general public. Either way, if your snow removal business is in charge of a certain area and someone slips, you could suffer losses due to employee liability or claims of negligence.
2. The Risk of Lawsuits From Slip and Fall Accidents
Though slip and fall accidents really are common during the winter, there is a high likelihood for snow removal businesses to be deemed legally responsible for such accidents if they are responsible for a certain area. It’s not uncommon for property managers and landlords to transfer legal responsibility via the contract with snow removal businesses.
In addition, before Bill 118 was put forward, the risk of a snow removal business losing a lawsuit was greater. This was because slip-and-fall claimants used to have 2 whole years to file their notice to sue.
This means that claimants could suddenly surface after two years with a collection of proof that they suffered a slip-and-fall accident. Meanwhile, the defendants (the snow removal business) may no longer have all the evidence to defend themselves properly. After all, 2 years is a long time. Within that period, there could have been lost records, buried files, corrupted files, key employees that are no longer with the business, and so on.
3. The Increasingly Litigious Environment
For the longest time, the risk of viable lawsuits against snow plowing businesses was really high. To compound this risk further, we live in an increasingly litigious society. In fact, law firms that specialize in personal injury cases are actively marketing to the public to sue for accidents, such as those related to slips-and-falls.
4. The Health Risks Faced by Snow Removal Employees on a Regular Basis
Snow removal businesses are also be exposed to employee liability. Though they are not the only high-risk industry to be exposed to this kind of liability, we must take into account the ever-present risks that snow removal employees face.
Here are a few examples:
- Slip and fall accidents which tend to be markedly more severe on icy surfaces
- The risk of getting hit by a snowplow and other similar heavy equipment
- The risk of mishandling gas-run snow blowers, resulting in serious injuries or arm amputation
- The increased risk of accidents when driving amidst poor visibility due to the weather
- The risk of cardiac-related fatality due to snow shovelling
5. The High Chance of Property Damage
If the situation calls for it, sometimes snow removal businesses send out employees in poor-visibility weather conditions. This factor, combined with the slippery roads, increases the likelihood of accidents and property damage. Another risk factor is when snow removal employees are asked to hurry to the site.
In addition to all of the above, property damage can also happen because some elements of the property are obscured by the snow. It could be the mailbox, exposed outdoor pipes, sprinkler heads, outdoor lighting, the fence, landscaping elements, and so on.
The Silver Lining: Bill 118 and Its Effects On Snow Removal Insurance
So far we’ve talked about why snow plowing business insurance is in the high-risk category. Now it’s time to focus on some good news.
Earlier, we mentioned how claimants of slip-and-fall accidents used to have 2 years to file a notice to sue. Bill 118 has changed all this. Now claimants have a 60-day timeframe which is a reasonable timeline for all parties involved.
If the claim is valid, the evidence will be fresh and a just settlement can be given. However, frivolous claims will just as easily be brought to the light. Therefore, Bill 118 can potentially encourage more insurance companies to offer snow plowing business insurance. It could even result in lower premiums - however, this remains to be seen.
Hassle-Free & Tailor-Fit Snow Plowing Business Insurance
That wraps up our article about snow plowing business insurance and the factors that make it high-risk to insure. If you’re looking for tailor-fit snow plowing business insurance, our team is here to help!
KASE Insurance is an award-winning insurance brokerage firm in Ontario. Through the years, we’ve helped numerous businesses from different industries. With our help, you can have tailor-fit snow plowing business insurance that addresses all the unique risks faced by your business.
Furthermore, we’ll be your partners through it all - from negotiating premiums to updating your insurance, to following up on claims. We offer the most hassle-free insurance experience yet.
Ready to protect your snow removal business? Reach out to us today or get started with a quick quote!