Commercial general liability, often called CGL, is the policy that responds when someone outside your business says your work hurt them or damaged their property. For snow removal contractors it is the most important policy you own, and the one where the fine print matters most.
What General Liability Covers for Snow Contractors
Bodily injury. The classic example is a slip and fall on a lot, walkway or entrance you are contracted to clear. See slip and fall liability.
Property damage. A blade clips a parked car, a curb, a light standard, a garage door or landscaping. Snow piled against a building causes damage. Salt harms a customer's interlock or lawn.
Legal defence. Defending a claim can be costly even when you did nothing wrong. Liability policies typically include defence costs, subject to the policy terms.
Policy Terms Snow Contractors Should Check
Two policies with the same limit can respond very differently to a snow claim. Ask your broker about:
- Snow and ice exclusions or limitations. Some general liability forms restrict coverage for injuries caused by snow or ice. For a snow contractor, that defeats the purpose.
- Completed operations. Covers claims arising after you finished the work and left.
- Salting and ice management. Should be declared and covered. See salting and sanding insurance.
- Contractual liability. Covers liability you assume under a contract, such as an indemnity clause, where the policy allows.
- Additional insureds. Most commercial clients will ask to be added. See certificates of insurance explained.
- Subcontractor warranties. Some policies require your subcontractors to carry their own coverage.
- Per occurrence and aggregate limits. See per occurrence vs aggregate limits.
- Deductible. A higher deductible can lower premium but increases what you pay on each claim.
How Much Liability Do You Need?
Residential operators often start around $2 million. Commercial property managers, condo corporations, municipalities and institutions often require $5 million or more, usually reached by adding an umbrella policy. Your contracts set the floor. See $2M vs $5M liability for snow removal.
What General Liability Does Not Cover
- Your own vehicles. Accidents involving your trucks fall under plow truck insurance.
- Your own equipment. Damage to your blades or loaders needs equipment insurance.
- Employee injuries. These typically fall under workers compensation.
- Your property. Your shop and salt storage need business property coverage.
Provincial Notes
- Ontario: the 60 day notice rule for snow and ice claims on private property.
- British Columbia: BC occupiers liability.
- Alberta: Alberta occupiers' liability.
- Saskatchewan: Saskatchewan slip and fall liability.
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Frequently Asked Questions
Is general liability the same as snow plow insurance?
General liability is one part of snow plow insurance. Most contractors also need commercial auto for their trucks and coverage for their equipment.
Does general liability cover damage caused by my plow truck?
Usually not. Damage caused while operating a vehicle generally falls under your auto policy. Equipment used off road can be more complicated, so ask your broker.
Can my client be added to my general liability policy?
Yes. Adding a client as an additional insured is common for commercial snow contracts. Your broker arranges it and issues a certificate.