Do I Need to Get Snowplow Insurance? A Detailed Guide
Do I Need to Get Snowplow Insurance? A Detailed Guide
Are you trying to figure out whether you need snowplow insurance? Our helpful guide right here covers the key things to know.
Do you live in an area prone to heavy snow? You may be thinking about starting your own snowplow enterprise.
Before starting your business, consider the benefits of snowplow insurance.
You may be wondering, “Do I need snow plow coverage?” The answer is yes.
A snowplow policy will protect you against liability. Moreover, it can replace the value of your snowplow if it sustains damage.
You can customize a snowplow policy to your needs. The problem is that not all snow plow insurance companies offer equal coverage.
This article will help you navigate the waters of snowplow coverage. Read further to know more.
Choosing the Right Type of Snowplow Coverage
The type of coverage you need depends on such factors as your business schedule and service areas. The coverage type also depends on your operations. Consider the following questions:
- Am I charging for my services?
- Am I plowing residential or commercial areas?
- Am I charging for additional services? (i.e. snow removal from roofs or walkways)
- Do I have employees?
- Do I need coverage for any damage done to the plow?
By answering these questions, you can determine which insurance company is right for you. For instance, some insurance carriers may not offer coverage to plowers who service commercial areas.
Other insurance companies may limit your service areas and the size of your operations. If you service commercial areas, for example, some carriers limit the size of the parking lots. Worst of all, insurance standards are subject to change annually.
That said, establishing your own parameters will help you find the best insurance company.
Talk to your agent about additional plowing activities. If you remove snow from roofs, you may need some additional coverage on your policy. The same logic applies to snow removal from walkways or sidewalks. Many policyholders also overlook other activities, such as sanding.
Sanding usually requires special equipment. When it comes to sanding, you could be held liable if someone slips. For this reason, you need additional coverage. Besides sanding, you could face liability if anyone sustains an injury in an area that you treated.
Added coverage also applies if you hire employees or contractors. Your subordinates may not receive coverage if they have repeated driving violations on their records. Therefore, check the driving records of all employees or contractors before applying for insurance coverage.
If you use your personal vehicle for plowing, you must obtain a separate commercial policy. This is especially true if you’re charging for your services.
Your personal insurance won’t cover business activity. Generally, you would obtain a commercial auto policy. This type of policy will cover the following:
- Personal injuries
- Property damage
- Medical expenses
- Collision coverage
Besides commercial auto, insurance companies may offer snow plow coverage in different forms. For example, you can obtain coverage through a business owner policy or an umbrella policy.
Let’s say you’re getting a commercial auto policy. Within a business policy, you can obtain a separate snow plow policy. This type of coverage is usually seasonal. In many cases, you must obtain a general business policy before taking out a snowplow policy.
General Liability Coverage
In many cases, the snowplow coverage limit must match the limits of your commercial policy.
- Example: If you prefer a $500K liability limit for snow plowing, the same limit must apply to your commercial policy.
The general liability category usually covers your legal expenses if another party sues you. Your insurance company may add snow plow coverage to your general liability policy.
You can also invoke your general liability policy if you purchase a new snowplow rider for your business. From there, the carrier will alter the terms of the general liability policy to cover your snowplow ventures.
That said, the standards depend on the insurance carrier.
Cash Value vs Replacement Cost
If your snowplow undergoes damage, your policy will dictate how much you can receive in compensation. Your policy will pay out the compensation through one of two methods:
- Cash Value: If you have a cash value policy, the insurance company will only pay for the depreciated value of the plow.
- Replacement Cost: A replacement-cost policy allows you to replace your snowplow at retail value.
Replacement coverage is usually more expensive because the insurance company must honor higher payouts. Conversely, cash-value policies are cheaper because the insurance carrier will pay less to cover the damage.
Regardless of the coverage type, you won’t get more money to replace leftover expenses.
Which is the Best Option?
In terms of the best coverage, it depends on your situation. However, the replacement option is the best fit for most people since you’ll have enough money to replace your snowplow. If you choose replacement coverage, provide a receipt showing the retail value of the plow. You should also provide receipts for any equipment that needs replacing.
- Note: Some insurance companies offer a separate policy for equipment replacement.
On the other hand, the cash value may be a better choice due to the cheaper premiums. Further, you may have enough funds to pay out of pocket costs if necessary.
Spare No Expense Choosing Snow Plow Insurance
You should prioritize a high-value snow plow insurance company that will protect you in case an emergency arises. Plowing snow comes with dangers and risks. If you want to maximize coverage, choose a replacement policy, as it will provide higher payouts if your snow plow is damaged.
Want to know more about business insurance costs? Click here to learn more.