Winter in Canada is quite harsh, and due to the recent Arctic polar vortex, there has been a massive increase in the volume of snow. The number of snowfalls accompanied by icy winds and freezing temperature has reached unprecedented levels which Canadian cities have not experienced so far.
Experts attribute this to climate change and global warming, and the grim forecast is that this trend is likely to continue in the coming years. For snow removal contractors this is good news. To them, more snow means more business and consequently more money.
However, as per Business Insurance Calgary AB snow removal is a high-risk trade for liability lawsuits. Therefore, in such cases, it is snow removal insurance that comes in handy and protects your business.
What is snow removal insurance and how does it impact your business?
Snow removal insurance is an insurance that is designed specifically for snow removal contractors and keeping their interests in mind. It protects them against common risks associated with their professional activities, such as slip-and-fall injuries or property damage.
Examples where snow removal insurance is necessary
Below are two instances where snow removal insurance has been explained:
1. As a snow removal contractor, you were supposed to clear snow in a parking lot. While you have removed the snow, still there is a patch left and a person slips on this patch and breaks their leg.
2. You were supposed to remove the snow from the driveway of a home and while removing it, your machine hits the wall and breaks it.
In both these instances you could be sued up to a period of two years by the aggrieved party and even if you are not found responsible, the legal expenses could hit your business very hard.
Protection is provided through Commercial General Liability insurance
This clause is included is included in the comprehensive snow removal insurance package and provides you coverage for the liability issues most common to your business – bodily injury or property damage. Coverage includes protection against legal expenses, medical fees, and repair expenses.
What else is covered under snow removal insurance?
The good part is that snow removal insurance does not come with a one-size-fits-all approach. Rather it can be customized by a business insurance Calgary Ab broker to meet your specific business needs by adding additional policies such as:
– Equipment and tools coverage
Covers risk of damage and theft to your equipment and their accessories, portable business and even property of others that is in your care.
– Equipment breakdown insurance
Protects your equipment and the cost to replace, or repair it, in case it breaks down due to an electrical or mechanical issue.
– Hired and non-owned vehicle coverage
This cover protects the vehicles that you use for your business purposes and which are not owned by you, or borrowed, or taken on rent or lease.
– Legal expenses insurance
This cover protects you against legal expenses and also covers you for expenses incurred in consulting with an experienced lawyer for advice on any legal matter.
How much does snow removal insurance cost?
Snow removal is a high-risk industry and so insurance costs are high when compared to other trades. Business Insurance Calgary Ab usually factor in the below-mentioned points when determining the cost of your insurance:
– Business location
The costs will be higher if you are located in a city where it snows more often than other cities.
– Number of years in business
The higher your experience, the lower will be the cost.
– Size of operations
The lower the size of your operations, the lower will be the cost of insurance.
The higher your revenue, the higher will be the cost of insurance.
Snow removal is a risky and hazardous business, but with the right insurance cover, you can carry out your work safely.