What snow plow contractors need to know about sub-contractor insurance costs.
Updated: May 22, 2018
As a snow plow contractor, your general liability rates on #snowplowinsurance can be much more expensive than your costs as a landscaper.
One of the reasons snow plow insurance costs are higher than landscaper insurance costs is due to claims resulting from snow plow contracts. You are usually required to sign a contract for clients who you work for plowing/salting their premises. On many occasions, you will be able to use your standard snow plow contract. However, for larger plowing accounts, the contract is created by the owner of the property or their attorney.
Over the last 25 years, I have seen contracts expand the responsibilities of the snow plow contractor. In many cases, the contract could make you responsible for any bodily injury or property damage occurring on the premises.
What Should You Do?
To protect your lower liability insurance costs, it is important to read every contract you are required to sign BEFORE you sign the contract. If the language transfers liability to you in “any” circumstance, I recommend you have your legal representative review the contract. In many cases, the wording can be revised to lessen the liability on you as the #snowplowcontractor.
The less liability you have, the less chance of a claim and the lower your annual cost of insurance. Snow and ice removal rates for general liability insurance can range from $5 per $1,000 of payroll, up to as high as $40 per $1,000 of snow plow payroll.
On a $100,000 payroll, that could be a $3,500 swing in annual premiums if you have lower claim payouts on your insurance.
When plowing snow, reading snow plow contracts and reviewing with your attorney to lessen your liability could greatly reduce your claims payouts and reduce your general liability insurance rates.
For more information on reviewing snow plow contracts and how to reduce your snow plow insurance rates, please call Greg Botson at 440-537-2292 or contact us online.