Snow Removal Contracts: Insurance Clauses You Should Check

Snow removal contracts serve more than the purpose of specifying when and where services will be performed. They also establish who bears risk when things do not go as planned. Among the worst traps in an agreement, insurance clauses are one of the most ignored by many contractors. Understanding snow removal contracts: insurance clauses you should check can save you from lawsuits, denied claims, and costly litigation.

Here is a guide to insurance-based clauses that should be carefully considered before signing any snow removal contract.

Why Insurance Clauses Matter More Than You Think

Insurance clauses specify who is responsible for what portion between the contractors and homeowners. They can stipulate policy forms, minimum limits, and additional insured status. If you don’t comply with these terms, you could end up in breach of contract.

Even if you have insurance, the coverage may not react along the anticipated lines in case liability has been reassigned by contract in ways your policy won’t accommodate. It's expensive, but so are these clauses. Worth reviewing alongside the pricing and scope of work.

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Additional Insured Requirements

The additional insured requirement is one of the more ubiquitous provisions included in snow removal contracts. Property owners frequently request to be placed on your general liability policy.

This clause determines:

• Who is covered by your policy
• When coverage applies
• Whether coverage is for future work or only past work

You also need to make sure your policy can accommodate the requested additional insured language. Not all endorsements are created equal, and loose wording can open up gaps during a claim.

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Indemnification and Hold Harmless Clauses

We all have heard of hold harmless agreements, the indemnity clauses in contracts that say who pays when a claim is filed. So, if drafted broadly, these clauses can really leave you out in the cold. Certain contracts impose liability on contractors for damage they did not cause. This may contradict terms in the insurance policy and cause headaches during claims handling. It is important to know whether indemnification is reciprocal, restricted, or unilateral before you say yes to such provisions.

Required Insurance Types and Coverage Limits

The majority of snow removal agreements list specific types of insurance and minimum limits that need to be obtained. Common requirements include:

• Commercial general liability
• Commercial auto insurance
• Workers’ compensation

Trouble occurs if required limits are higher than what your policy offers, or if types of coverage are included with no real definition behind them. Higher limits aren’t inherently a bad thing, but they need to reflect your actual exposure and policy structure.

Always take the time to confirm your existing insurance will meet contract terms before performing work.

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Waiver of Subrogation Clauses

Waiver of subrogation removes any rights your insurer has against the property owner after it pays a claim. The legitimate damage clause is standard, though it has potential implications for how your insurance will respond.

Waiver of subrogation is not a feature automatically included in all policies. Some allow endorsements, and others may prohibit them altogether. If you accept such a clause without checking the policy backing, it could lead to challenges in understanding and implementing it down the road.

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Proof of Insurance and Certificate Language

Typically, contracts call for a contractor to obtain COIs. But many take it a step further with specific wording regarding notice for cancellation.

Pay close attention to:

• Required certificate language
• Notice requirements for policy changes
• Renewal and update expectations

Certificates don’t alter coverage, but contracts with conflicting language and policy terms can be a source of disputes.

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How Insurance Clauses Connect to Risk Management

No insurance clauses live in isolation. They are directly related to documentation procedures, service logs , and operating uniformity. Explicit terms, backed up by appropriate coverage, lower the amount of friction when there are claims or disputes. A lot of times, contractors will also look at internal insurance guides or contract checklists before they sign new contracts to make sure what they do can be covered.

Final Thoughts on Reviewing Snow Removal Contracts

Snow removal contracts: insurance clauses you should check aren’t just legal fine print; they determine how much risk is shared over the season. Contractors who review language around additional insured, indemnification clauses, coverage limits, and policy endorsements do not have any surprises when they count the most.

Spending time to digest these clauses at the outset, then, will help things run more smoothly and with better compliance and fewer disputes over the long winter. For further insurance clarification custom-made to businesses focused on snow plowing, Summit Insurance continues to be the go-to source.