Can Personal Snow Plows Be Insured for Town Plowing?

With New England winters fast approaching, towns have already begun posting listings to hire local drivers who own snow plow equipment. However, before you go accepting any jobs, it’s important to know if and how you will be covered by your insurance. 

Here at Berry Insurance we know that when winters get snowy, having drivers on call available to plow streets is important to upkeep the safety for any town. We also know that receiving insurance coverage for your personal vehicle when using it commercially can be tricky. 

In this article we’ll break down whether insurance carriers will insure commercial use of snow plows and how you can guarantee coverage this winter. 

How are snow plows covered by insurance? 

The Insurance coverage you’ll receive for your snow plow (or will need to acquire), will depend entirely on your carrier’s policies as well as the services you plan to provide. 

Most personal auto insurance policies will cover snow plows as specialized or customized pieces of equipment if you plan to use them for personal use only - such as plowing your own driveway or walkway. 

However, when planning to use your snow plow commercially - such as being hired to plow residential neighborhoods, highways, or commercial lots - you may not receive coverage on your standard auto insurance policy. In these cases you may be required to obtain a separate commercial general liability coverage and/or a complete commercial auto insurance policy to guarantee coverage for your plow operations - but this will vary on your insurance carrier. 

So how can I insure my personal snow plow for business use? 

While plowing commercially during the winter months can be a lucrative side business for any plow owner, you’ll need to know exactly what insurance options you have. 

Since insurance carriers tend to rate snow plows and plowing operations differently, it’s hard to give a definitive solution for over plow operators. So, we had our personal line client success managers reach out to some of the insurance carriers we work with to see how their company would handle snow plow drivers operating commercially. Here are the coverage options we found: 

1. Rate the snow plow for business use on your policy: 

In some instances (depending on your planned plowing operations), carriers will allow you to add an endorsement onto your policy to include a “business use” rating class of the vehicle with the plow. This will protect you if you get in an accident while using the car for business. 

There are still situations where you may not be eligible for the “business use” rating - and this rating may not provide coverage for “completed operations”. 

Completed operations is an important part of snow plow coverage that protects in the event that someone is hurt or injured after you are done plowing. For example, if a patron slips and falls in a parking lot you plowed earlier, they could sue you for their injuries. Your policy would likely not provide coverage as it is not involving damage to your vehicle or liability for accidents involving your vehicle. 

2. Obtain a general liability policy:

Obtaining a commercial general liability policy will provide enough coverage for your snow plow operations, separate from your personal auto policy. This policy would cover you for any bodily injury or property damage caused by your plowing, while also providing coverage for completed operations. 

While not a full commercial auto policy, having a general liability policy may be the requirement your carrier has when you’re looking to rate your snow plow for business use. 

Many carriers will require you to get a general liability policy in conjunction with a business use endorsement on your personal auto policy.

3.Get a commercial auto policy: 

If you’re serious about your snow plow operations, or your personal carrier won’t allow plow coverage, you will need to get a complete commercial auto policy. 

A business auto policy can be highly customized to fit the coverages that are relevant and necessary to you and your business operations. But, you will still need the general liability policy to receive the completed operations coverage. 

To learn more about this type of policy, check out this article: What is Commercial Auto Insurance? Do I Need it?

Since carriers rate the risks associated with snow plows differently, the only way to find out the restrictions of your own policy is to speak with your insurance agent or provider regarding your insurance policy and planned plowing operations. 

How much will business coverage for plows cost? 

The cost of adding insurance coverage to cover your plowing business this winter will again depend on your carrier and what options are available for your specific situation. 

When simply adding a business use rating onto your personal policy, you can expect your premium to see a slight increase due to the added risk that comes with business operations.

The cost of a general liability policy will vary depending on a variety of factors, including your business type, plowing operations, location, and more. When writing general liability policies for snow plowing we typically see them costing a few thousand dollars. 

Obtaining a commercial auto insurance policy for your plow will likely cost more than the other two options but prices will again vary on the coverages you choose, your operations, vehicles and more. Typically we see business auto policies range from $1,500 for private passenger vehicles to $100,000 for larger corporations with multiple work vehicles. To get a better idea of the cost of this type of policy, check out this article: How Much Does Commercial Auto Insurance Cost in Massachusetts?

Staying covered this winter 

Plowing streets, driveways, and other public spaces can be the perfect way to earn some additional income in the winter months. But as you can see above, there is a lot that goes into the type of insurance coverage you will be qualified for when using your plow commercially. 

At Berry Insurance, we’re happy to help you review your snow plow insurance options before you take any jobs this winter, so you can be sure you won’t get caught paying for any costly claims. 

Interested in learning more about snow plow insurance coverage? Check out this article for a further breakdown of the coverage and its components: Do I Need Snow Plow Insurance?