There are 4 essential insurance coverages you need for your snow plowing business.
As the fall is coming to an end, you are putting away your hedge trimmers and lawn mowers and are starting to gear up for a winter season. Right now is the perfect time to evaluate your snow removal business’s current insurance coverage or if you are new to this business to start figuring out what coverages you’ll need. You have just enough time to take a look, analyze your coverages (with or without the help of an insurance agent) and shop around for the best deal.
Personal auto insurance policies, do not cover a “for profit” snow removal. So, if you are in a business of snow removal, however small, a commercial insurance policy is a must.
Commercial Auto: The most important asset you have in your businessare your trucks and snow plows. You and your employees will be doing a lot of driving during the winter season, often in bad weather conditions. Commercial Auto policy will cover your trucks while on the road. Make sure you have both Collision and Comprehensive coverages to ensure property coverage for the trucks if the accident is your fault. Auto Liability portion of this policy is equally important. Due to the nature of snow removal, this is your biggest exposure so make sure your liability limit is at least $1,000,000 (or more).
It is also important to note Hired/Non Owned coverage. This will cover your employees if they drive any vehicles in the course of business that are not owned by you. This is a fairly inexpensive coverage but should not be overlooked.
General Liability: General liability is a foundation of any insurance portfolio. This policy will protect you against third party claims that you or your employees damaged their property or caused any kind of bodily injury. For example, an owner of a car might allege that you damaged the car while plowing the street it was parked on. General Liability will help defend you against the claim, pay for legal fees and compensate the owner for damages. All of these expenses can amount to hundreds of thousands of dollars.
Umbrella Insurance: Umbrella coverage will increase your liability coverages across all policies. This comes in handy when your current insurance carrier won’t offer higher limit on the primary policy but you are required by a client to maintain that higher limit.
Property / Inland Marine Coverage: Property coverage is responsible for replacing your snow plow and other equipment that is damaged due to perils such as fire, storm, etc. The amount of insurance you need will depend on the size of your operation and how much equipment you have. Whether you have a small office or a large storage facility with all the winter gear, property insurance will ensure you are back on the job as soon as possible. To enter into a contract with municipalities, office parks and larger businesses, you will most likely be asked to provide a certificate of insurance.
Not only do you need to carry the insurance coverage required, but it is also essential to have a responsive insurance agent. Getting insurance certificate fast as well as being on point if any changes are needed should be your agent’s number 1 priority. Getting a certificate wrong or not communicating promptly with you (or your potential client) can loose you contracts and adversely affect your bottom line. Here at GRBM Insurance, we place the utmost importance on the service we provide to our clients. Our certificates are turned around in record time and if any issues arise we work immediately with you and your client to resolve them and get you on the job, fast.
Call us at 845.878.9293 , and we’ll be happy to discuss the needs of your snow removal business.
