Your contract can change your insurance picture more than any storm. A few paragraphs buried near the end of a commercial snow agreement can shift liability for a property owner's slip and fall claims onto you. Understanding these clauses before you sign is one of the most valuable things a contractor can do.
General information only. Have a lawyer review contracts and a broker compare them against your policy.
Hold Harmless and Indemnity Clauses
These clauses require you to protect the property owner or manager from claims. They range from narrow to very broad:
- Limited: you indemnify the owner only for claims caused by your own negligence.
- Intermediate: you indemnify the owner for claims where you share some fault.
- Broad: you indemnify the owner even for claims largely caused by their own negligence.
Broad indemnities can expose you to liability your insurance may not fully cover. Ask your broker whether your general liability policy's contractual liability coverage extends to the indemnity you are signing.
Additional Insured Requirements
Clients commonly ask to be named as additional insureds on your policy. This gives them some coverage under your policy for claims arising from your work. Details to check include whether additional insured status applies to completed operations, and whether it extends to your umbrella. See certificates of insurance explained.
Primary and Non Contributory
This wording means your policy responds first, and the client's own insurance does not share the loss. It is common in commercial contracts and needs to be supported by your policy.
Waiver of Subrogation
After paying a claim, an insurer may try to recover costs from the party responsible. A waiver of subrogation gives up that right against the client. Your insurer generally needs to agree to it.
Minimum Limits
Contracts typically set minimums for general liability, auto and sometimes umbrella. See insurance requirements for commercial snow contracts.
Service Standards That Affect Liability
Insurance clauses are not the only risky language. Service terms shape how much responsibility you take on:
- Trigger depth: at what snowfall depth you must respond.
- Response times: how quickly sites must be cleared.
- Salting obligations: automatic or on request. See salting and sanding insurance.
- Zero tolerance language: promising bare pavement at all times. See zero tolerance snow contracts.
- Per push vs seasonal pricing: see per push vs seasonal contracts.
Incident Notice Clauses
Many contracts require you to notify the owner of incidents within a set time. In Ontario, you also have legal duties when you receive a snow and ice claim notice. See the Ontario 60 day notice rule.
Before You Sign
- Send the insurance section of the contract to your broker.
- Confirm your policy can meet every requirement, or what it will cost to add.
- Push back on broad indemnity and zero tolerance language where possible.
- Get a lawyer to review large or unusual contracts.
Need a starting point? See our snow removal contract template.
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Frequently Asked Questions
What is a hold harmless clause in a snow removal contract?
It is a clause requiring the contractor to protect the property owner from certain claims, sometimes including claims caused by the owner's own negligence.
Does my insurance automatically cover what I agree to in a contract?
Not necessarily. Contractual liability coverage has limits. Have your broker review the contract against your policy.
What does additional insured mean?
It means the client is added to your liability policy and may receive coverage for claims arising from your work. See what is an additional insured.
Related Pages
- Insurance requirements for commercial snow contracts
- Hold harmless agreement
- Waiver of subrogation