by Chad Yoder, Personal Lines Manager
“Forecast is for cold temperatures and lots of snow, with heavy accumulations throughout the night and into tomorrow morning.” At the sound of these words, most of us are hunkering down in our cozy homes to wait out the winter storms; while many others are seeing dollar signs by cleaning up after a good snowfall. Those willing to brave the elements can make good money plowing snow, despite the wear and tear on their equipment and long, sleep-deprived hours. Why is plowing a big deal when it comes to insurance? Regardless of whether you are being paid to plow or just being a good neighbor, there are many liabilities that anyone plowing snow should be aware of.
Get a Commercial Auto Policy
First, anyone plowing snow with his or her personal vehicle should consider a commercial auto policy, even if the vehicle is titled in your personal name. When the roads are covered after a heavy snowfall, the road typically narrows making it more difficult for vehicles to pass each other, especially for a truck with an eight-foot plow on the front. Vehicles can clip each other or force one another off the road. Plowing parking lots around parked cars or other personal property often results in damage as well. Long hours and drifting snow can cloud one's judgment and cause expensive mistakes. A standard personal auto policy is not designed to cover these liabilities associated with snow plowing. Some companies may be willing to endorse a personal policy to cover some of these exposures, but coverage may not be as broad as a commercial policy.
Consider General Liability
Second, anyone plowing for a business or institution of any kind is responsible for clearing the lot of not only snow, but ice as well. If someone slips and falls on a parking lot that you plowed, they will hold you responsible for their injuries because you were under contract to remove the snow. If you’re going to be in the snow removal business, be sure you have a general liability policy, in addition to your commercial auto policy, to protect you. Also, take the appropriate measures to reduce the likelihood of slip and fall injuries by salting the parking lot and sidewalks. If you are not providing salting services, make sure your contract does not hold you responsible for injuries suffered from slip and fall.
Complete Your Coverage
Finally, if you are just a kind person using your garden tractor or Kubota™ to plow your neighbors, be sure to add the proper liability endorsement to your homeowner policy. Typically, your homeowner liability protection stops at your property line. Some companies offer coverage for driving these type vehicles off your property and while on the road.
Before the snow flies, call FIFS at 267-384-5300 to be sure that you have the right coverage in place when the snow flies.
FIFS Connection, Winter 2006, Vol.3, No. 1
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