Liability claims from improper snow removal insurance and ice removal are not just common—they can be financially devastating. Slip-and-fall incidents, particularly those involving elderly individuals, often lead to severe injuries from which recovery is either prolonged or incomplete. These situations frequently result in BIG CLAIMS.
Whether you manage a manufacturing facility, own a commercial property, or oversee a residential complex with parking lots, sidewalks, and walkways that need to be cleared of snow and ice, having the right protections in place is essential. Here’s what you need to know to ensure your snow removal provider has adequate insurance coverage and risk management practices.
Snow Removal: A Critical Risk for Property Owners and Managers
As a landlord or property manager, snow removal is not just a seasonal chore—it’s a critical liability exposure. The most expensive claims you’re likely to face come from slip-and-fall accidents on uncleared snow or ice, caused by ineffective removal. That’s why one of the most important steps in managing this risk is transferring it to a professional snow removal contractor.
Key Risk Mitigation Steps
- Choose a Reputable Contractor
Select a snow removal company that has a proven track record and properly maintained equipment. This reduces the chances of accidents or incomplete service that could lead to liability claims. - Safety is a Priority
A contractor with a strong safety record isn’t just ideal; it’s a necessity. Be sure to vet their safety protocols and history before signing an agreement. - Formalize the Agreement
A written contract is essential. It should include the scope of work, insurance requirements, and hold harmless indemnity provisions that clearly define liability and protection. - Demand Proper Insurance Documentation
Don’t just rely on a Certificate of Insurance (COI). While it’s essential to have the COI on hand, ensure it is supported by endorsements that prove the contractor has adequate coverage for general liability, automobile liability, and workers’ compensation. - Ensure You Are an Additional Insured
The contract should specify that you, as the property owner or manager, are listed as an Additional Insured on the contractor’s insurance policies. This will help protect you against any claims arising from the contractor’s work.
Insurance Requirements You Must Insist On
To adequately protect your assets, your contract should mandate that the contractor provides, at their own expense, the following insurance coverages throughout the life of the agreement:
- General Liability Coverage: Covers bodily injury or property damage claims resulting from their snow removal activities.
- Automobile Liability Coverage: Ensures that any accidents involving the contractor’s vehicles are covered.
- Workers’ Compensation Coverage: Protects against claims from the contractor’s employees who might get injured on the job.
Beyond these, it’s critical to confirm that the contractor’s policy provides full contractual liability that supports indemnification in your favor. This means that if something goes wrong, the contractor’s insurance steps in to cover the liability—protecting your business from costly claims.
Reviewing Certificates of Insurance: A Must-Do Task
Before your contractor begins any work, obtain and thoroughly review the Certificate(s) of Insurance. It’s not just a formality; make sure it provides evidence of all necessary coverages and states explicitly that snow and ice removal services are included.
Beware of contractors who do snow removal as a seasonal gig without notifying their insurance carrier. Often, contractors’ insurance agents will issue the COI, and their contact details will be on the certificate. It’s worth taking the extra step of contacting the agent directly to confirm the validity and scope of the coverage. An email confirmation from the broker can go a long way in ensuring you’re protected.
Beware of Policy Cancellations
Another critical point to keep in mind is the potential for insurance policies to be cancelled, terminated, or modified without your knowledge. You should require that the contractor’s policy cannot be cancelled, terminated, or altered without at least 30 days’ written notice to you. If you receive such a notice, halt all services until the contractor provides replacement coverage meeting your contract’s provisions.
Protect Your Assets: A Real-Life Example
Imagine you manage an upscale shopping center. A businesswoman slips and falls on ice-covered steps, suffering a severe fracture. The immediate costs include $40,000 in medical expenses and $35,000 in lost wages. Over five months, the family also incurs $17,500 in additional household help. Her “specials”—out-of-pocket expenses—are now at $92,500. Add pain and suffering, permanent disability, and the family’s loss of services, and you’re staring at a claim upwards of $350,000.
Now, imagine you didn’t have the right indemnity and insurance coverage in your contract with your snow removal provider. Suddenly, that $350,000 claim is your responsibility. But, with the right hold harmless language and adequate insurance in place, the financial burden shifts to your contractor, protecting your company’s assets from potentially crippling claims.
In Conclusion: Is Your Coverage Up to Par?
By ensuring your snow removal provider carries proper insurance and has solid contractual agreements in place, you can confidently transfer the risk of winter weather accidents to them, rather than carrying the burden yourself. Don’t wait for an accident to happen before discovering gaps in your insurance coverage—be proactive and protect your business today.
In Summary:
If you need more information about the topics in this article, or any help with risk related issues, please contact Albert Sica, Managing Principal, at 732.395.4251 or [email protected].
