The snow removal industry insurance dilemma By Ted Butler
R
ecently, I was asked to attend a municipal snow
The answer, unfortunately, was rather anti-climactic.
removal sub-contractors meeting which was held by
“Just standard city policy,” retorted the city manager. But
a local Canadian city. Contractor meetings like this
the question itself had highlighted a major issue that has
are held in almost every city in Canada to help prepare the
become a nationwide dilemma within the snow removal
city’s snow removal contractors for the upcoming winter
industry.
season.
Canadian insurance companies are choosing to either
Representatives from all the local municipal snow removal
refuse coverage to contractors or they are implementing
contractors were in attendance, and as expected, the
massive premium rate hikes to cover the cost of the ever-
standard issues were discussed. Issues such as route
increasing lawsuits which are plaguing the industry.
assignments, “on-call” procedures, and invoice payments,
These massive premium rate increases have forced many
etc. The usual mundane stuff, but then suddenly, halfway
contractors right out of the business.
through the meeting, one particular contractor stood up and asked a question of the city which immediately became the focus of the entire meeting.
There are three main areas of snow removal affected: high-density residential properties (high-rise condos and apartments), high-traffic commercial properties (shopping
The question simply was ”Why do us sub-contractors have
malls and big box retailers), and public highways and
to carry such incredibly high and expensive insurance
municipal roads.
coverage, especially considering the fact that when a resident sues for a slip and fall incident, they actually sue the city, not the contractor?”
Snow removal contractors operate on a seasonal basis, typically turning to landscaping and lawn maintenance or general hauling during the summer months. These
The room went silent. Everyone in the room was thinking the
industries are also a major problem for insurance
same thing. What a great question.
companies – from the use of pesticides on lawns to constant
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ISSUE 1 – 2020 | SNOW MANAGER
