The policies a snow removal business carries
Slip and fall claims on ice are the big one, along with plow damage to curbs, lawns and cars. Read your contract carefully about who is responsible for ice after you leave.
| Policy | Average a month |
|---|---|
| General liability | $132 |
| Tools and equipment | $53 |
| Commercial auto | $299 |
| Workers' compensation | $150 |
Averages are what Insureon's customers who are snow and ice removal businesses pay, from Insureon's cost page; most of its customers have fewer than five employees. Across all its small business customers, general liability runs $265 to $3,030 a year.
Claims snow removal companies plan for
- Someone slips on ice in a lot you plowed
- A plow takes out a curb or mailbox
- A blower throws a chunk of ice at a window
- Salt damages a lawn or a new walkway
Ask your agent, in these words:
- Would my policy pay if someone slips on ice in a lot you plowed?
- Would my policy pay if a plow takes out a curb or mailbox?
- Would my policy pay if a blower throws a chunk of ice at a window?
- Would my policy pay if salt damages a lawn or a new walkway?
Name the work you sell
A policy covers the work you describe on the application. From the snow removal services list, name each of these and ask whether any is excluded: driveway plowing, per push; season contract; walk and step shoveling; salting driveways and walks; pre-treating before storms; parking lot plowing; sidewalk clearing; snow hauling.
Plow trucks and spreaders call for commercial auto and equipment coverage. On the tools list, the items to list on the policy are heavy-duty two-stage snow blower; v-plow or wing plow; skid steer with snow pusher; liquid anti-icing sprayer; second truck, and from the starter kit, plow truck or a plow on your pickup; walk-behind snow blower; snow shovels and pushers; salt spreader, walk-behind or tailgate; backpack blower.
State rules in the license
Most states do not license snow removal work as a trade of its own, so there is usually no state insurance minimum tied to a license. Cities and commercial customers can still set their own.
Workers' comp and bonds
The SBA says every business with employees must carry workers' compensation, unemployment and disability insurance. Insureon's average for snow and ice removal businesses is $150 a month, priced per $100 of payroll. A bond protects the state or the customer, not you; Insureon puts its yearly cost at a share of the bond amount:
| Bond amount | Estimated yearly cost |
|---|---|
| $5,000 | $25 to $500 |
| $10,000 | $50 to $1,000 |
| $50,000 | $250 to $5,000 |
Certificates of insurance
Commercial lots and HOAs ask for a certificate before the season starts. Keep a PDF on your phone so you can send it the day they ask.
Sources
- Insureon: Insurance cost for snow and ice removal businesses, checked October 9, 2026
- Insureon: General liability insurance cost, checked October 9, 2026
- Insureon: Workers' compensation insurance cost, checked October 9, 2026
- Insureon: Surety bond cost, checked October 9, 2026
- SBA: Get business insurance, checked October 9, 2026
Last checked October 9, 2026. This page is general information, not legal or tax advice. Rules change and differ by state and city, so confirm with the agency named before you act.