Snow removal contractors – we depend on them so we can drive and walk safely in the winter. Many may perform other services during the warmer months, such as landscaping, paving, etc.  While they may have Commercial General Liability insurance in place for those other operations, it does not necessarily mean their current insurance will cover snow removal.  

The cost to add coverage for snow removal to a current CGL policy can be affordable. Several factors are taken into consideration, such as:
• Where is snow removal performed? (Commercial, Public Streets/Roads, Residential, etc.)
• Number of employees
• Gross annual receipts
• Insured location
• Is your insured required to sign a contract? Contracts are usually not a requirement for insurance, but if there is a contract in place, does it address where and how often snow removal should be done? If they are shoveling/sanding/salting walkways, does the property owner have responsibility to keep walkways clear at times when the snow removal contractor is unavailable?
• Contracts that state the snow removal contractor is solely responsible for continuous maintenance, or that require a risk transfer of the sole negligence of the owner to the snow removal contractor should be avoided.
• Does your insured hire independent contractors? If yes, subs should provide the insured with proof of insurance showing liability limits to be at least equal to the insured. The insured should also have a contract in place with their subs that includes a hold-harmless or indemnification language in favor of the insured, and last but not least, the insured should be added as an Additional Insured on the subs liability policy.

Erickson-Larsen, Inc. & Bjornson/Sentinel – E&L has markets for a wide variety of contractors, restaurants, daycares, truckers, vacant buildings, and many more. For applications or additional information, call our offices at 800-442-3168.

Disclaimer: This article is intended for general information purposes only.  The information contained is not intended to constitute and should not be considered legal or professional advice, nor does it represent that coverage does or does not exist for any particular claim or loss under any policy.