Winter operations shouldn’t start without a review of your insurance policies and other documentation that could impact the claims process and future renewals.
1. Meet with your insurance agent to review your contracts, ensuring that they meet all insurance requirements. Have your attorney review all of your contracts to ensure maximum liability protection. If you sign your clients’ contracts, give your insurance agent and attorney ample time to review.
2. Review certificates of insurance from all subcontractors, making sure they have adequate limits and coverage is current. According to industry standards, subcontractors should have limits equal to or greater than your company (or at a minimum comply with the specified limits written in the contract).
3. Make sure all subcontractor agreements are signed and filed in your office. If you don’t have a subcontractor agreement, ask your insurance agent for a sample document.
4. Make a list of all high-value snow equipment and make sure you have the proper insurance coverage in place.
5. Make sure all seasonal trucks are added onto your auto policy.
6. Review your snow liability rating base (payroll, sales, per plow, etc.) at the beginning of the season and then periodically as the season progresses. This will help to avoid large audits at the end of the season, which could be a cash flow issue in the early spring.
Source: Shay Leon, AAI, CIC, is area vice president-commercial lines, Gallagher Bollinger Inc.