How to Get Business Insurance for Snow Plow Delivery Service (2024)

1. Determine the Type of Service You Offer

To understand the process of obtaining insurance for your snow plow delivery service, determine the type of service you render. Ask yourself the following questions: Do you provide snow plowing for residential or commercial clients? Do you operate in one state or multiple states? Do you have employees or subcontractors? If you find answers, then you can conveniently know the type and amount of insurance you need, as well as the legal requirements and regulations you have to comply with.

2. Identify the Types of Insurance You Need

To familiarize yourself with acquiring insurance for your snow plow delivery business, identify the types of insurance you need. Depending on your service type, you may need different types of insurance to cover your business. Some of the common types of insurance for snow plow operators are:

General liability insurance

Pick this insurance to cover the legal costs and damages from third-party claims of bodily injury or property damage caused by your negligence. For example, if you accidentally hit a fence or a parked car while clearing snow, general liability insurance can help pay for the repair or replacement costs. General liability insurance can also cover personal injury claims, such as defamation or slander if you make false or harmful statements about a client or competitor. Note that your clients or landlords may often require general liability insurance as a condition of doing business. The average cost of general liability insurance for snow plow operators is $43 per month or $520 per year.

Commercial auto insurance

Choose this insurance to cover the physical damage and medical expenses from accidents involving your snow plow vehicle. Commercial auto insurance is different from personal auto insurance, as it provides higher limits and more coverage options for business use. Also, Use commercial auto insurance to cover damages as a result of theft, vandalism, fire, or weather events. Know that most state laws require commercial auto insurance for vehicles you use for business purposes. The cost of commercial auto insurance for snow plow operators depends on factors such as vehicle type, driving history, location, and coverage limits.

Contractor's tools and equipment insurance

This covers the repair or replacement of your snow plows, snow blowers, ice scrapers, salt spreaders, and other tools and equipment used for snow removal. Contractor’s tools and equipment insurance is a type of inland marine insurance, which covers items that are in transit or stored at different locations. Contractor’s tools and equipment insurance can protect you from losses due to theft, vandalism, fire, or weather events. The cost of contractor’s tools and equipment insurance for snow plow operators depends on the value and age of your equipment.

Worker's compensation insurance

This covers the medical expenses and lost wages of your employees who sustain an injury or become ill while working for you. Worker’s compensation insurance can also provide disability benefits and death benefits to your employees or their dependents. The cost of worker’s compensation insurance for snow plow operators depends on factors such as the number of employees, payroll, location, and industry.

3. Compare Quotes From Different Insurance Providers

4. Choose a Policy That Suits Your Budget And Needs

5. Review Your Policy Regularly And Update It As Needed

To explore the steps to ensure your snow plow delivery service, review your policy regularly and update it as needed. Bear in mind that your business may change over time. So, review your policy regularly and update it as needed to reflect any changes in your service type, location, equipment, employees, or clients. You should also notify your insurance provider of any claims or incidents that may affect your policy or premium.

Recap

To discover the procedure for obtaining insurance coverage for your snow plow delivery business, define the nature of the service you provide and recognize the specific insurance types it requires. Then, evaluate quotes from various insurance providers and select a policy that aligns with your budget and requirements. In addition, periodically assess and make necessary updates to your policy.