Own a Snow Plow Company? Make Sure You Have the Right InsurancePosted on Nov 29, 2018
As winter begins, snow plow companies of all sizes are getting ready for work. You know the work that goes into preparing your crews for the long winter ahead involves many tasks, including:
- Checking equipment
- Performing routine vehicle maintenance
- Verifying salt supplies
- Updating GPS navigation and tracking devices
- Confirming routes
There is one other thing you need to do before winter weather sets in for good. You need to review your insurance policy to make sure you have the right types and amounts of coverage.
What Kind of Snow Plow Business Insurance Coverages Do You Need?
You have an important job to do this winter.
Your role is to keep roads clear of ice and snow making them safe for drivers. Whether you’re handling a contract for your local municipality, tasked with clearing county roads, or employed by various neighborhood associations or businesses, you need to protect your business and financial interests from lawsuits, other drivers, and more.
These types of insurance coverages for snow removal companies are essential:
- Commercial auto coverage. This type of insurance protection is critical for a business that operates primarily behind the wheel of a vehicle. Even if you get out and do some occasional shoveling, your primary function is plowing snow for money. For that reason alone, commercial auto insurance is a necessity for your business. Make sure you discuss the nature of your business and inform your insurer that you plow roads.
- Commercial general liability coverage. While your commercial auto policy and your snow plow insurance cover some liability, in today’s litigious society it is often insufficient to meet your needs. Commercial general liability insurance offers protection above and beyond what your other policies provide.
- Workers’ compensation coverage. Driving snow plows in dangerous weather conditions is risky business for the men and women you employ. Workers’ compensation coverage is not only required by law in most states, but it also offers you key protection if your drivers are injured on the job.
- Snow plow equipment insurance. This type of insurance coverage offers protection for your snow plow equipment.
Other types of insurance to ask your insurance agent about include:
- Umbrella liability coverage. There are times when lengthy legal battles ensue (as in chain reaction accidents) or when judgments against your business may be extraordinarily high. In these instances, your existing liability coverages, including general liability coverage may not be adequate for your needs. Umbrella coverage offers peace of mind and added protection for your personal and business financial interests.
- Hired and non-owned insurance. Not necessary for all snow plow businesses. However, if employees use personal vehicles to plow for your business it is critical to have this type of insurance to cover potential gaps between the coverage your employees have on their personal vehicles and the coverage your business needs should an accident occur.
Each type of insurance brings something unique and specific to the table to protect your business. However, every business, even snow plow businesses, is different. That means you need to work closely with a local agency that understands the unique challenges and risks businesses in your industry and location face.
How to Keep Your Snow Plow Business Insurance Costs Down
While the winter months can be lucrative for your snow plow business, you don’t need the same degree of coverage and protection year-round. Consider working with your insurance agent to create a policy that allows your vehicles to have limited coverage during summer months and full coverage during the official “snow plow” season. Additionally, covering multiple vehicles, employing safe drivers, and maintaining solid safety records are also instrumental in keeping your insurance costs low.
The one thing you want to make sure to avoid is sacrificing coverage for cost. Saving money is great, but not when the price is essential protection for your business and personal finances.