Insurance Requirements For Plow Carriers

Snow plow insurance is a necessity for anyone looking to use their vehicle with a plow attached for profit. If you're simply clearing your driveway or walkway, your personal auto insurance should cover any damage to your plow, but not what it causes. However, if you're using your vehicle for snow removal services, you'll need to obtain a commercial insurance policy, also known as a business auto policy. This type of insurance provides coverage for bodily injury and property damage liability, as well as collision and comprehensive coverage for your vehicle and plow.

The requirements for snow plow insurance vary depending on location and the type of plowing you plan to do. For example, some insurance companies restrict coverage to certain areas like streets and roads, while others focus on highways or residential areas. It's important to note that most personal automobile insurance policies do not cover vehicles used for business purposes, so if you're planning to make money from snow plowing, be sure to consult with your insurance provider to ensure you have the correct coverage.

Personal vs. commercial insurance

Personal and commercial insurance policies have distinct purposes, despite their shared objective of safeguarding the insured from loss. The named insured is the entity that is covered by the policy. Personal insurance policies typically cover individuals, couples, or families, protecting them from financial losses resulting from accidents or damage. On the other hand, commercial insurance policies are designed for businesses and aim to mitigate financial losses resulting from property damage, liability claims, workers' compensation, and business disruptions.

Personal auto insurance is ideal for daily commutes but does not cover accidents that occur while working. It is intended for personal use and usually excludes business usage. If you use your personal vehicle for work-related tasks, such as commuting to meetings or making deliveries, you may need to add a commercial auto insurance policy. Commercial auto insurance, on the other hand, is necessary when a business owns the vehicle. It covers the business, its employees, and even personal errands. It typically has higher liability limits and covers a wider range of vehicles and legal issues.

If you are using your personal vehicle for snow plowing, your personal auto policy will provide coverage if you are plowing your own property. However, if you are using it for profit, you will need to obtain a commercial insurance policy, also known as a business auto policy. This type of policy provides bodily injury and property damage liability protection, covering medical expenses and legal fees if you injure someone or damage someone else's property while plowing. It also includes collision and comprehensive coverage for your vehicle and the plow in case of damage during a plowing accident.

Additionally, general liability insurance is necessary to cover snow plow operations. It provides protection against bodily injury and property damage caused by plowing. It also offers "completed operations coverage," which comes into effect after plowing is finished. For example, if someone slips and falls in a parking lot you cleared or if snow piled up against a property melts and causes flooding, the general liability policy will provide coverage.

Insurance for personal use

If you are using your vehicle for personal snow plowing, your personal auto policy will provide coverage. However, this does not include any damage caused by the plow. To ensure you are covered for any damage caused by the plow, you can add an endorsement to your policy. Listing your truck as a commercial vehicle will also ensure coverage in case of an accident. This way, you will be covered for any damage to your property, someone else's property, your truck, or the plow.

If you are using your vehicle for snow plowing for profit, you will need to obtain a commercial insurance policy, also known as a business auto policy. This type of policy provides bodily injury and property damage liability protection if you injure someone or damage another party's property while using your vehicle to plow. It also provides collision and comprehensive coverage to protect your personal vehicle and the plow if it sustains damage during a plowing accident.

In addition to a commercial auto policy, you may also need a snow plow insurance policy. This provides coverage for plowing specific locations, such as residential driveways, private roads, apartments, and retail complexes. Some policies exclude coverage for plowing large commercial locations. The cost of snow plow insurance varies depending on factors such as location and driving history.

It is important to note that the requirements for snow plow insurance may vary depending on your location. For example, in Massachusetts, you need commercial auto insurance to plow on public roads and to obtain a plowing contract or permit. Therefore, it is recommended to check with your local town or city to understand the specific requirements in your area.

Insurance for business use

If you're using your own vehicle for snow plowing, you'll need to consider business insurance. Most personal auto insurance policies do not cover vehicles used for business purposes.

A business auto policy will provide bodily injury and property damage liability protection if you injure someone or damage another party's property while using your vehicle to plow. This includes medical expenses and legal fees resulting from an accident you cause.

You can purchase snow plow insurance as a standalone liability policy for a specified period, often covering the snow season. This type of policy typically covers residential driveways, private roads, apartments, and retail complexes.

Additionally, you may want to consider general liability insurance, which offers protection against lawsuits. This type of insurance can cover legal defense costs if a client or injured party sues you.

Other types of insurance to consider for your business include commercial auto insurance, workers' compensation insurance, and business owners' insurance.

It's important to consult with a licensed insurance broker or agent to determine the specific types of insurance and coverage levels that are appropriate for your business needs. They can guide you through the process of assessing your risks and exposures and help you navigate the complexities of commercial insurance.

Collision coverage

If you are using your vehicle for snow plowing, you will need to consider collision coverage as part of your insurance plan. Collision coverage helps pay to repair or replace your vehicle if it is damaged or destroyed in an accident with another car or object, such as a fence or a tree. This is separate from liability coverage, which helps pay for damage to another person's car from an accident you cause.

When considering collision coverage for your snow plow vehicle, you should take into account factors such as the value of your vehicle, your ability to pay for repairs or a replacement out of pocket, and whether your vehicle will be in storage for an extended period. Additionally, you may need to adjust your operator class to "Business Use" if you are using your personal vehicle for snow plowing services.

Completed operations coverage

The cost of completed operations coverage depends on various factors, including the type of construction, building materials used, and revenue and financial health. It is often bundled with a contractor's general liability insurance, so it is rarely priced separately.

Frequently asked questions