Do snow clearing contractors need insurance? You may have heard that question asked by beginner snow removal contractors. If you own a snow removal business, snow plow insurance is one type of insurance you need to get.
As with many insurances, snow plow insurance helps you to protect your vehicle, property, and other aspects related to your business. So, here is all you need to know about snow clearing insurance.
What is snow plow insurance?
As the name suggests, snow plow insurance is a type of insurance designated for snow removal businesses and contractors.
As an owner of a company that continuously deals with snow removal, you need to have a general liability policy that covers your operation.
This policy is capable of protecting you from any property damages and injuries that may be caused by your plowing operation.
Unlike personal liability insurance, snow plowing insurance covers the specific snow plowing-related incident that may not be covered by other types of insurance.
Do snow clearing contractors need insurance?
In most countries, snow removal insurance is required by law. Therefore, as a snow clearing contractor, you’ll need to have this type of insurance.
In addition to compliance with the law, there are several benefits that you can get from snow plowing insurance.
- Increases your credibility – If you can prove to customers that you’re adequately insured with snow plow insurance, they will feel more confident when using your service.
- Saves you money – Taking legal liability due to property damage can be costly. Luckily, if an incident happens, all legal costs will be covered by the insurance.
- Covers most incidents – Incidents can happen anytime and anywhere, especially for a job like snow plowing. Despite how ridiculously specific the accident is, snow plowing insurance will cover all of that.
Average snow plow insurance cost
It has already been established that, as a snow clearing contractor, you need snow plowing insurance. So, how much does the average snow plow insurance cost?
As a general rule of thumb, you can expect to pay up to $1,000 per month for basic commercial general liability insurance.
However, the actual cost depends on several factors, such as industry experience, business revenue, business size, and insurance history.
In general, if you have more experience in this business, you will likely make fewer mistakes. As a result, the insurance company will reduce your policy cost.
In addition, if your business generates more revenue, it increases the risk of liability claims. Therefore, you will likely pay more for a snow plowing insurance policy.
Why is snow plowing insurance so expensive?
Snow Plowing insurance is more expensive than other types of insurance due to the specific risk that snow plowing businesses have.
While might be more expensive, this type of insurance can protect you from the small incident cost that may ruin your business in the long run. So, you may want to consider getting even the cheapest policy for your snow removal business.
So, do snow clearing contractors need insurance? The short answer is yes, you do. While can be more expensive than average insurance policies, snow plowing insurance can be advantageous for your business.
So, as a snow removal contractor, you may want to consider getting a snow plowing insurance policy.