Insurance is a Must in Snow and Ice
There are several types of insurance, any company operating snow removal needs to be adequately covered in case of a slip and fall claim! It is illegal to do work without insurance. Types of insurance include:
Liability insurance covers people who may be found liable for negligence. For example, if someone slips, falls and breaks a leg in a parking lot that has just been plowed and deiced, the person may then sue the snowplowing company for damages. A common mistake is to assume that your landscaping or other core business liability insurance covers losses for snow removal. It is up to the business owner to make sure that liability policies cover snow removal, and many properties require coverage of up to $1 Million, $2 Million or more. Make sure you check your policy!
Home-Based Business Coverage
Owners of small snowplowing companies who operate out of their home usually do not have adequate coverage in their regular homeowner's policy.This coverage can be increased by adding a "rider", but usually a home-based business policy will be necessary.
Almost anything is insurable. For example, a fidelity bond insures against employee dishonesty. Disability insurance replaces part of your income if you become disabled and unable to work. A surety bond covers losses resulting from a second party's failure to fulfill a contract. Non-performance loss protection insures against failure of a contractor, supplier or other person to fulfill an obligation. Owner or key executive insurance enables businesses of sole proprietor or partnerships to pay bills and continue operating. When considering insurance, check with an insurance agent to see what type of coverage would be appropriate and if the premiums are worth the risk of investing funds to cover the risk.
Although the list of things that can be insured is inexhaustible, there are four major categories of insurance: property, life, health, and liability.