Snow Removal Company Liability Insurance & Contract Language
Posted on Sep 27, 2019
Snow removal companies are often the first line when it comes to digging out in the aftermath of snow and ice storms across the country. They are the ones called upon to get out there and remove the snow and ice, so the rest of the community can return to school, work, and business as usual. Their business provides an invaluable service to the community.
Protecting their ability to continue serving the community is important financially, professionally, and to the public as a whole. Two of the most important insurance coverages include:
- Liability insurance
- Contract language
The better you understand both, the more protection you can provide to yourself, your business, the people who work for you, and the community you serve.
Liability Insurance for Snow Removal Companies
Snow removal services require more than one type of liability insurance to provide coverage and protection on all fronts. You need more than the standard general liability insurance that comes with a Business Owner’s Policy (BOP). These are some of the additional liability coverages you may require for the sake of your snow removal business.
1. Snowplow Commercial Auto Insurance
Snowplows drive in some of the worst conditions of the storm, often until it is reported unsafe for even plows to be on the road. This means the men and women working for you are driving in dangerous, low visibility conditions on wind-ravaged, snow-covered roads. It is often a testament to the skill and talent of your drivers that accidents do not occur very often.
However, when accidents do happen, you could be responsible for damages to other vehicles, medical bills for injuries, and even damage to structures, such as:
- Bridges
- Buildings
- Fire hydrants
- Utility Poles
These are, after all, very large vehicles capable of causing a great deal of damage. Commercial auto insurance protects your drivers, trucks, and equipment when damaged in accidents too, allowing you to get your people and plows back on the roads in time for the next big snowstorm.
2. Professional Liability Insurance
This type of coverage protects your business from damages caused by errors in the services you provide. For instance, if your driver dumps too much salt into a parking lot and it damages a vehicle or the sidewalk, you could be liable without this important protection.
3. Workers’ Compensation Insurance
While not technically liability insurance, workers’ compensation insurance protects employers from liability lawsuits related to injuries received while working.
Since your people work in some of the worst conditions for driving, it’s logical protection for snow removal companies to consider, whether the law requires it or not.
4. Commercial General Liability Insurance and Umbrella Insurance
Not only does umbrella insurance provide additional liability protection beyond the scope of commercial general liability coverage, but it also offers additional financial protection if judgments against you or legal fees exceed the limits of your general liability coverage.
Contract Language for Snow Removal Companies
The best contracts are highly specific. Effective contracts must include the following content:
- Location: Include the specifics of where your people will plow, shovel, blow snow, sand, or salt.
- Timing: State when your business will begin the work. This may involve once the accumulation of a certain number of inches (be precise according to snow and ice accumulation numbers), during a snow or ice event, or after the snow or ice event is over.
- Scope: Be exact when explaining the services you provide (sanding, salting, shoveling, plowing, blowing snow, etc.). Also, make sure to provide details about services you do not offer and notify clients that they are responsible for those services in no uncertain terms.
Work with Us
Otterstedt Insurance Agency has been serving the insurance needs of businesses throughout New Jersey and beyond for 100 years.
Let us help you navigate the tricky liability insurance needs of your snow removal business so you can have the protection you deserve.
Complete our online form or call us now at 201-227-1800 for snow removal company liability insurance and advice on contract language.
