Is Your Maritimes Snow Removal Business Protected Against Lawsuits?
What would you do if your Maritimes snow removal business were sued? Even after the snow is plowed, there can still be icy or slippery conditions and people can slip and fall on the cleared property.
Commercial general liability insurance is a key part of your Maritimes snow removal insurance coverage to financially protect you from slip-and-fall lawsuits.
What is snow removal insurance?
Snow removal insurance protects your snow removal business in New Brunswick, Nova Scotia, and Prince Edward Island from liabilities and mishaps associated with clearing snow. It’s a package of insurance coverages that protects you against lawsuits, property and equipment damage and theft, and collision damage.
How does commercial general liability insurance protect snow removal contractors in the Maritimes against lawsuits?
Commercial general liability (CGL) insurance protects you against third-party injuries and property damage as a snow removal contractor in the Maritimes.
CGL insurance protects your snow clearing business against claims of third-party bodily injury or property damage occurring as a result of your snow removal business’s operations.
If you were sued, CGL insurance would help cover the legal costs to defend the claim against your snow removal company in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.
Without CGL insurance, you will be responsible for paying all the costs related to third-party (member of the public/customers) damage to their property or injuries.
What does commercial general liability insurance help cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
Is snow removal insurance just seasonal?
While snow removal operations are seasonal in the Maritimes, snow removal insurance is generally written as a year-round policy. Year-round insurance protects your equipment while it’s not in use.
What other insurance coverages are recommended for snow removal operators?
Commercial auto insurance
Snow removal operators need commercial auto insurance because they use vehicles, including trucks, plows, and other equipment, while doing their work, often in blizzard or blizzard-like conditions.
Commercial auto insurance provides liability protection if the operator causes injury or property damage to others while operating a snow removal vehicle, such as hitting a parked car, mailbox, or building.
Contractor’s equipment insurance
It protects plows, loaders, and machinery against damage or theft. Contractor’s equipment insurance covers loss or damage to a contractor’s tools, machinery, and equipment, especially when these items are moved from one job site to another.
Contractor’s equipment insurance protects owned, rented, borrowed, or leased equipment. This coverage is essential for contractors who rely on expensive mobile equipment.
Commercial property insurance
It’s needed if you own or lease a shop, yard, or storage facility. Commercial property insurance protects your Maritimes snow removal business against property losses, such as theft or vandalism. You can also add sewer backup or flood coverage extensions to protect your snow removal company’s headquarters.
Cyber liability insurance
Cyber liability insurance is recommended if you have digital contracts and payments.
This type of insurance will help protect your snow removal company financially in case of a cyber-attack. Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages. That’s when cyber insurance can protect you financially.
How are subcontractors covered under snow removal insurance?
It’s important to know that subcontractors are not automatically covered by your snow removal insurance policy. Subcontractors in New Brunswick, Nova Scotia, and P.E.I. must carry their own liability insurance and often need to name you as an additional insured.
Does snow removal insurance cover equipment damage?
Yes, snow removal insurance covers equipment damage. Contractor’s equipment insurance protects plows, skid steers, loaders, and other tools against:
- Collision damage
- Fire
- Theft
- Vandalism
What deductibles are recommended for snow removal operations?
It depends on the size of your snow removal operation and your risk tolerance:
- $1,000–$2,500 for liability claims (balances affordability with protection).
- Higher deductibles (e.g., $5,000+) for equipment if you’re comfortable handling smaller losses out of pocket.
Final thoughts
Snow removal insurance protects you from significant financial risks if sued for accidents or if your equipment is stolen or damaged. Make sure you have enough liability insurance to protect your Maritimes snow removal business.
5 FAQs
Why is snow removal insurance all year in the Maritimes instead of seasonal?
The equipment and vehicles used for snow removal are still at risk of damage, theft, or vandalism while in storage or during off-season. Year-round insurance covers these risks. Vehicles used for snow removal typically require commercial auto insurance year-round if they are driven for personal or other business use after winter.
Is landscaping insurance also part of snow removal insurance?
Yes, landscaping insurance can be part of Maritimes snow removal insurance. Many insurers provide combined coverage options designed specifically for businesses that operate in landscaping during the warmer months and snow removal during winter.
How important is commercial general liability insurance for snow removal businesses in the Maritimes?
Commercial general liability (CGL) provides essential protection against the risks of third-party bodily injury and property damage that can happen during snow and ice management and result in lawsuits.
How much CGL insurance do Maritimes snow removal operators need?
For snow removal companies, the recommended coverage limits for commercial general liability insurance typically start at $1 million per occurrence and $2 million aggregate. Many contractors choose higher limits ranging from $2 million to $10 million depending on the size of their operations, contracts, and client requirements.
Should a snow removal business in the Maritimes hire insured subcontractors?
A Maritimes snow removal business should only hire subcontractors who are properly insured with their own commercial general liability insurance. For example, if a subcontractor causes property damage or bodily injury, their insurance can cover claims, protecting your snow operation from being held financially responsible. Clients can require proof that subcontractors have commercial general liability insurance.