The Five Policies You Need

Running a snow removal business is demanding. You’re up before dawn, battling icy conditions and working against the clock to keep roads, driveways, and parking lots safe. But the job doesn’t come without risks—damaging a customer’s property, equipment breakdowns, or even a slip-and-fall incident on a freshly cleared surface can put your business at risk.

That’s why having the right insurance is crucial. It’s not just about compliance but protecting your business and ensuring you can keep going even when things go sideways. This guide will break down the insurance policies every snow removal professional needs to stay covered and confident throughout the season.

Read on to discover expert insights from Jason McConkey, director of transportation underwriting at Central Insurance.

The Five Essential Insurance Policies for Snow Removal Businesses

The right policies allow you to focus on the job, knowing you’re covered if something goes wrong. Below, McConkey breaks down the five essential policies every snow removal business needs to stay protected, productive, and profitable all season.

1. General Liability Insurance

General liability insurance is a core policy for any business. It shields you from financial losses tied to third-party bodily injury or property damage claims. Snow removal work involves high stakes. A single incident could result in thousands of dollars in medical bills or repair costs, which can quickly snowball into legal fees and settlement payouts. This coverage can help.

What It Covers:

• Bodily Injury: If a client slips on black ice in a parking lot you recently cleared, this coverage handles their medical expenses and legal claims.
• Property Damage: Accidents happen—your snowplow might knock over a fence or crack a driveway. This policy covers the costs of repairing or replacing damaged property.
• Personal and Advertising Injury: This policy provides protection if your business is accused of defamation or copyright infringement in your marketing materials.

Around 43% of small businesses face the threat of a lawsuit. Snow removal companies, often small and reliant on local contracts, are especially at risk due to the nature of their work. From accidents on cleared properties to damage to customer property, these claims can lead to lawsuits. 

“For small businesses, snow removal might seem straightforward, but the liabilities are significant.” McConkey explains. “Without proper coverage and loss control measures, a single incident can result in costly claims.” General liability insurance helps protect businesses from these risks, offering peace of mind through busy winter seasons.

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2. Commercial Auto Insurance

This policy is tailored for your business’s vehicles, ensuring they’re covered for operational risks and beyond. Snow removal vehicles are large and often operate in hazardous conditions, making accidents more likely. Proper coverage ensures your business can keep running, even after unexpected incidents.

What It Covers:

• Accident Liability: Covers damages or injuries if one of your trucks is involved in a collision
• Vehicle Damage: Repairs are covered if your plow sustains damage in an accident or from hazards like falling ice
• Comprehensive Coverage: Protects against theft, vandalism, and non-collision damage, such as hail or flood
• Hired and Non-Owned Coverage: Extends to vehicles you rent or borrow for your business

McConkey also recommends keeping up a regular maintenance schedule. “Put a contract in place where you inspect vehicles based on number, miles, or jobs. When it comes to snowy weather, you want to make sure your units aren’t just operational but not at risk of falling out of operation.”

If your business relies on a fleet of snow removal vehicles, fleet management software is a great option to optimize your vehicles.

Learn more: 4 Best Fleet Management Tools & How They Protect Your Commercial Auto Rates

3. Professional Liability Insurance

This policy goes beyond physical damage, covering claims tied to mistakes or oversights in your service. Misunderstandings or perceived mistakes can tarnish your reputation and lead to costly disputes. This coverage helps protect your business from financial and reputational damage.

What It Covers:

• Negligence Claims: If a customer claims your snow removal created a more hazardous situation (e.g., piled snow blocking visibility), this policy handles legal costs and settlements.
• Missed Deadlines: If cannot clear snow by an agreed time and it results in financial losses for your client, you’re covered.
• Professional Errors: If an improperly cleared lot leads to accidents or damage, this policy helps you address client complaints.

“Aside from insurance, a culture of safety will be your next defense against professional liability claims,” McConkey mentions. “You can’t expect your employees to hear things once and retain them. Always repeat and reiterate best practices and loss control methods to reduce the risk of mistakes.”

4. Worker’s Compensation Insurance

This policy provides financial and medical support to employees injured on the job. McConkey emphasizes that snow removal is physically demanding, with risks including frostbite, equipment injuries, and exposure to extreme weather. Worker’s Comp protects your employees while safeguarding your business from lawsuits related to workplace injuries.

Try an Incentive Structure: McConkey suggests sending a clear message on safety and supporting it by rewarding employees who prioritize it. Reward those who regularly drive and operate machinery safely.

Workers’ Compensation claims can be overwhelming. That’s why Central offers a nurse hotline, which helps policyholders with claims reporting. It provides telephonic nurse triage and a system for submitting a claim within minutes of an accident. As a result, injured workers can be immediately directed to the appropriate medical facility and receive proper treatment without waiting for paperwork or approvals to be filed.

What It Covers:

• Medical Expenses: Covers hospital bills, physical therapy, and other medical treatments for injured workers
• Lost Wages: Compensates employees for time off work while recovering
• Disability Benefits: Offers financial assistance for workers who sustain permanent injuries
• Death Benefits: Provides support to families of workers who suffer fatal accidents

A comprehensive loss control program is vital to reduce employee injuries in such a physically demanding industry. Prioritize an insurance carrier committed to developing and maintaining loss control measures that make sense for your business. 

Learn More: The Benefits of a Central Loss Control Specialist

5. Equipment Insurance

Equipment insurance is a specialized policy that covers the tools and machinery essential to your operations. Your equipment is expensive and critical to your operations. Without coverage, replacing stolen or damaged equipment could have a huge financial impact on your business.

This policy is also commonly referred to as inland marine insurance. As a snow removal business, you frequently move tools and machinery between locations. This policy provides specific protection for costly equipment that may exceed the limits of general equipment policies. 

What It Covers:

• Theft: Reimburses the value of stolen equipment, such as snow plows or salt spreaders
• Damage: Covers repair costs for machinery damaged by accidents or natural events like hail or falling ice
• Equipment Breakdowns: Offers coverage for mechanical failures that require immediate repairs

To ensure comprehensive coverage for your company, McConkey recommends both commercial property and tools and equipment insurance. Commercial property protects a building you own and the contents inside at the location listed on the policy. Tools and equipment insurance protect your movable items outside of your place of business. So, no matter where the job takes you, you’ll be protected.

The Central Difference

Snow removal services are crucial to ensuring safety during the winter months, especially when keeping businesses, municipalities, and neighborhoods moving. Whether you’re plowing roads, salting parking lots, or hauling snow off commercial sites, your work keeps communities safe and operational. 

At Central Insurance, we understand every snow removal business has its own risks. From the specialized equipment you need covered to the unpredictable weather conditions you face on the road, we tailor our coverage to fit your specific needs. 

“Our focus is on building relationships and delivering the right coverage for your business,” says McConkey. “We know every snow removal operation is different, so we take a personalized approach to make sure you have the protection you need.”Our team is here to offer guidance and expertise to help you navigate unique risks, so you can focus on keeping communities moving during the winter.

Contact an agent below for customized coverage that fits your needs.