If your business includes plowing snow, you need snow plow insurance coverage to protect your equipment — and your livelihood. You provide a valuable service to businesses and individuals in your community. However, in spite of your best efforts and safety precautions, accidents can occur.
Weather conditions may make visibility difficult and road conditions hazardous. Making matters worse, snow plow machinery is heavy equipment, typically weighing 15 times more than the average car. When an accident occurs or the plow causes damage to someone else’s property, the resulting losses can be substantial.
What Insurance Covers for Snow Plowing in Rockford IL?
An insurance policy for snow removal activities is generally stand-alone coverage you purchase in addition to commercial auto insurance. Typically, snow plow insurance includes coverage for businesses engaged in clearing:
- Retail parking lots
- Apartment building parking lots
- Private roads
Understanding Coverage Options
Snow plowing in Rockford, IL for snow removal should be designed to include the following components.
Collision and Comprehensive Coverages
First, you need collision and comprehensive coverage for the plowing equipment itself, so that if a loss occurs, you have insurance protection for your investment. Collision coverage will pay to repair or replace your plow or equipment if is damaged in a covered accident.
Comprehensive coverage will cover damage to your snow plow if it is damaged in some other way. Plows and plowing equipment can be expensive; an uninsured loss could be significant for almost any business. Having collision and comprehensive coverage can provide needed peace of mind.
The second component is liability coverage. If your snow plow damages someone else’s vehicle or other property or injures someone, your liability protection can limit your out-of-pocket costs by paying for the damage and medical expenses of the injured party. These coverages are referred to as “property damage” and “bodily injury” protection.
Your snow plowing in Rockford, IL will also cover the costs of defending against a lawsuit brought by someone claiming they were injured or their property was damaged by your plowing activities. Coverage may be available for $1 million or more, although your snow plow liability limits must be similar to your commercial auto liability limits.
How to Buy Snow Plow Insurance?
It is important to have adequate insurance protection in place before you begin using snow removal equipment, to comply with the law and to protect yourself and your business against potential losses.
When evaluating how much coverage you need, start with the minimum amount you are required to carry by law or contractually (whichever is higher). Understand that the minimum amount may not be enough to protect you if a loss occurs. Talk to your insurance professional about your needs. He or she will need to know how many snow plows your business operates, how many commercial drivers work for you and how much financial loss your company could stand to absorb.
Work with a commercial insurance provider that regularly handles commercial auto and liability policies to ensure your agent has the experience, knowledge and resources to provide the protection you need. Not every insurance carrier or agent offers snow plow insurance.