Businesses in the snow plowing industry work to remove snow. During the off-season, professionals may work in landscaping. If the annual revenue resulting from snow plowing is less than 40%, you can get more affordable insurance plans than illustrated.
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While it’s easy to assume that seasonal work lacks risk, the snow and ice you work on can cause danger for you, your employees, local property and more. With all the travel needed to get your trucks and plows between jobs there is risk of accidents, loss of equipment and injury to employees and third-party individuals. Cover all these potential issues with us.
General Liability is an insurance that covers the liabilities involved in the business. This snow plow insurance can cover medical expenses and attorney fees resulting from bodily injuries and property damage when your snow plow business is legally responsible.
Business Owners Policy (BOP) is a combination of various insurance policies that are fit for small to mid-sized businesses. This business insurance simplifies the coverage by providing property and liability protection under one policy. Get huge savings compared to buying each policy.
Commercial Auto insurance is essential for snow plowing business. The insurance policy covers vehicles used specifically for commercial purposes like snow plowers' machines. This snow plow insurance provides liability and bodily injury protection if you injure someone or damage another property while using the vehicle to plow.
Workers Compensation is usually a state-mandated insurance that provides medical and rehabilitation benefits when an employee gets sick or has sustained bodily on the job. It also provides a portion of the employee's lost wages from the start of the accident until they are able to work again. The employee is then not allowed to sue you in these incidents.
Hauling equipment for snow plowing comes with inherent risks. Inland Marine is a type of snow plow insurance that provides protection to certain types of movable property. Inland Marine insurance will cover business equipment in transit. Unlike a Commercial Property insurance, this offers coverage without any regard to the location of the property.
Health Insurance is a way to pay for the snow plower's health care. This insurance pays most all the costs of medical care, and their families as well. It is an essential investment as it provides your employees the coverage they need to make sure they feel taken care of and to ensure that you recruit top talents and make them stay.
While you are unable to insure their direct vehicle you want to make sure your business is covered for liability purposes. You may need to carry a Hired and Non-Owned insurance for that. Hired and Non-owned auto insurance cover your business from the liability associated with your employee's at-fault accidents when in their own vehicles. Keep in mind it will not pay for their personal liability or physical damage to their car. This is for your liability only, because you will be brought into a lawsuit if your employee is at fault and is working while causing an accident. Also, if you have employees plowing snow for you, then you need to make sure that you have Workers' Compensation.
While every business may have different exposures causing different prices, there is a pretty common amount that you can use for budgeting purposes. Keep in mind that things like claim history, your experience in the industry, whether this is your main operation or just an incidental part of doing business, number of employees, type of truck and plow used, and how much coverage you need are all things that will impact the pricing of all the insurance policies. Also, keep in mind that different insurance policies are rated differently and use different factors. For example, a Workers Compensation policy will be rated on type of job and payroll, where a General Liability policy may be rated on either the number of employees or annual sales. That being said, a typical General Liability insurance policy for a snow plow business can cost around $400 to $1000 per year. Commercial Auto insurance is around $900 per year. And a Business Owners Policy is about $400 annually. Be sure to get some comparative quotes.
The answer to this question is not black and white and really it depends. Some General Liability insurance policies will cover this exposure, however, you need to double-check to make sure. It is more likely that it does not, and your policy will have to be endorsed to cover this exposure. Often, snow plowing is an incidental risk so many insurance agents do not ask if this is something you do. If it is, then you need to structure your General Liability insurance policy to reflect this. Unless your insurance policy mainly states that it covers snow-related claims then you need another policy for that.
If you already have Commercial Auto insurance for your trucks, you may be covered at least for physical damage and auto liability. If you haven't included the plow in your policy you need to inform your insurance agent. Keep in mind that not all companies will provide coverage for a plow under Commercial Auto, you may need an Inland Marine insurance policy for that and any other equipment. However, Commercial Auto insurance does not protect you against General Liability claims which can be a huge source of financial hardships if you are sued for bodily injury and property damage. Whether you sideswipe a car while plowing snow or miss laying down salt on the sidewalk of one of your customers and that causes someone to slip and fall, you will not find this coverage on Commercial Auto.
If you operate a snowplow, you need insurance to protect not only your vehicles but your business as well. Moreover, the insurance is often required by law before you can start plowing snow for a living. The risks involved with a snow plowing business can be high, but luckily there is an insurance policy that can answer almost all of the risks. Of course, not every single situation can be insured, but a majority of them can. Common claims that arise out of snow plowing operations include damaging property while plowing snow, like parked cars, auto accidents since the plow adds extra size and weight to your truck, and employee injury. All of these common claim scenarios can be covered by insurance. It is important that you treat insurance as an investment as your business and not a burden, as it can often keep your business from going bankrupt.
It is important that you understand all of the risks involved with your business, but here are some we see often. A common risk includes residents or visitors suffering from snow or ice-related injuries. You and your employees are only human and even though you do your jobs well, mistakes can happen. If you miss plowing a certain area, or miss putting salt down and someone is injured because of it, your business could be held liable. Your business can damage property when a plow skids on ice and damages a vehicle or property. Not to mention a person. If you are cruising along and all of a sudden someone runs into the crosswalk, you might not have enough time to stop. Injuries could happen to you or the passengers when plowing. Hazards like potholes, ditches or curbs could risk damaging the equipment. Your employees could become injured or ill while on the job. A common claim is a cut hand from someone trying to remove or put on a snowplow.
General Liability insurance, as with all insurance, can vary in price based on several factors. How many employees you have, your annual receipts, and who you are doing business with are all factors. Since each state has its own insurance department and controls its owns rates, General Liability insurance depends on the state your business is in. Some states have lower minimums while others are high. For instance, the minimum coverage for New Jersey is $5,000 while in New York is $15,000. Please consult your state office for the minimum in your state. If you're confused, consult with a CoverWallet advisor.
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