Does My Snow Removal Company Need Insurance?

White snow removal truck clearing snow off a road with plow.It’s that time again in New England when snow removal companies, from the entrepreneur with a plow attachment to full-service snow and ice management companies, are getting ready for work. Whether you’re in it already or looking to get your company started, snow removal services tend to be high-risk when it comes to accident potential. Learn more about the liabilities related to a snow removal company and how to mitigate them with better business insurance and business practices.

Snow Removal Companies and Their Liabilities

Snow removal is a big industry, pulling in over $20 billion per year in the US, according to a market research report by IBISWorld. Following that, big machines and big expectations also make them a liability-prone industry. It’s important to assess your risks and plan accordingly.

Street and Parking Lot Snowplowing

While the most efficient way to clear snow from roads and parking lots that are often outsourced, frequent snowplowing accidents include hitting cars parked on the street, knocking down mailboxes, hitting sprinklers, and damaging lawns on private property. For the customer side of things, check out our blog, A Snowplow Caused Damage to My Property—Who’s Responsible?

Snowblowers and Snow Shoveling

The most common forms of snow removal have a high potential for injuries. Even the simple act of shoveling snow sends an average of 11,000 people to the hospital per year, according to WebMD. Other injuries include slipping or pulling muscles, especially in the lower back. To mitigate these issues, make sure your staff is well-trained and equipped with anti-skid boots.

Ice Removal, Deicing, and Anti-Icing

Even preventative snow removal services such as anti-icing have potential liability for your company. Ice melting services are for homes and commercial businesses with common walking areas. Liabilities that can occur with this activity include slipping, pulling muscles, broken bones, and head trauma. These can be avoided by wearing shoes designed for icy conditions.

Liabilities and Business Owners Policies

Although the winter-time business has many services, snow removal is a high-risk industry when it comes to accident potential. Every business requires a different insurance plan. Listed below are excellent resources to help guide you in ensuring your snow removal business.

  • Business Owners Insurance: Business Owners’ Insurance is good for snow removal companies because it covers property insurance and business interruption insurance and offers liability protection.
  • Commercial Vehicle Insurance: Commercial vehicle insurance covers many potential liabilities, such as bodily injury and property damage. It also covers medical payments and personal injury protection. Depending on the level of coverage you desire, you can add other coverages to protect against things like comprehensive, collision, and uninsured motorists.
  • Property Liability Insurance: Property liability insurance protects against liabilities such as bodily injury and property damage. This type of insurance can also protect your company in cases of contractual and liquor liabilities. It covers medical payments and personal injury as well.
  • Workers’ Compensation: Workers’ compensation insurance protects employers from lawsuits resulting from workplace accidents. It also provides medical care and compensation for lost income to employees hurt in workplace accidents. Workers’ compensation is required in Massachusetts and many other places: be sure to research if this applies in your state.

Regardless of how big or small the company is, snow removal services are accident-prone, so you must invest in the right insurance. With all these policy options, it can get confusing trying to figure out what is and isn’t needed for your unique business situation. Contact TJ Woods Insurance Agency today to talk with one of our expert agents about what coverage is right for you. As a small business ourselves, we take pride in helping fellow small businesses succeed.