Marsh & McLennan Agency

Insuring Snow Plowing Operations

The first snowfall of the year can happen any day now, so it is time to get the snow plowing gear ready. If you plow during the winter months with your own vehicle, here is some information regarding your personal auto policy and when you should consider a commercial auto policy.

Under a personal auto policy:

• If you are plowing for a fee, your auto policy should be endorsed to Business Use to avoid issues at the time of a claim due to business use exclusions. The cost to add this endorsement is relatively small.
• You  should provide a receipt or documentation of the value of the plow and hitching equipment so the policy can be changed to include it in the Physical Damage coverage. Otherwise, if you have a loss the cost of the plowing equipment would not be included in the claim.
• The personal auto policy does NOT offer any Completed Operations coverage. This coverage responds in cases where someone may slip and fall after hired snow removal is completed.

When you need a commercial auto policy:

• If you are required to carry combined single limits.
• If you are required to list an Additional Named Insured on the policy.
• If you are required to produce a Federal Motor Carrier Service Association Filing.
• To obtain Completed Operations coverage. We suggest that if you are plowing for others that you always carry Completed Operations coverage.

If you have any questions, contact us at 888-850-9400.