Buying your first plow truck, or mounting a blade on the pickup you already own, is the moment a snow removal business becomes real. It is also the moment your insurance needs change, often in ways new operators do not expect.
This guide covers the basics: how the truck is insured, what the provincial minimums are, how the blade fits in, and what else a broker will want to know.
Personal or Commercial Auto?
The Insurance Bureau of Canada notes that commercial auto coverage is needed for personal vehicles used for business. Auto policies are priced on how the vehicle is declared to be used, so plowing for pay is something to tell your insurer or broker before the first storm, not after the first claim.
In BC, ICBC puts it plainly: if you are in the wrong rate class, "it could affect your coverage and leave you personally responsible for the cost of any claims." See does personal auto insurance cover plowing and can I plow snow with my personal truck.
Provincial Minimums
Each province sets a legal minimum for third party liability:
- Ontario: $200,000 minimum third party liability, according to FSRA.
- British Columbia: ICBC Basic includes $200,000 in third party liability. Optional Extended Third Party Liability can raise it up to $5 million.
- Alberta: $200,000 minimum third party liability, according to IBC.
- Saskatchewan: plate insurance includes $200,000 in third party liability, according to IBC.
The legal minimum is a floor. Many commercial contracts ask for much higher auto limits. See our provincial pages on Ontario commercial auto requirements, ICBC plow truck insurance, Alberta commercial auto requirements and SGI plow truck insurance.
Commercial Vehicle Rules
Heavier trucks can bring registration and inspection rules. In Ontario, CVOR applies to trucks with a registered gross weight or actual weight over 4,500 kg, and the personal use pickup exemption requires, among other things, that the truck is used without compensation, which paid plowing is not. Alberta's Safety Fitness Certificate applies to trucks with a registered weight of 11,794 kg or more operating only within Alberta. Check your own vehicle's weights with your provincial transportation ministry.
The Blade and Spreader
A mounted plow and spreader are valuable, and they change how the truck is used. Tell your broker about them so they can be declared properly, and ask how damage to the blade itself would be handled. Some contractors cover attachments under equipment insurance. See pickup trucks with plows.
The Truck Is Not the Whole Story
Your auto policy covers liability arising from the use of the vehicle. It is separate from general liability, which is the policy that typically responds to slip and fall claims on the properties you clear. IBC lists the two as separate business policies. Most clients who ask for proof of insurance want to see general liability on a certificate of insurance.
What a Broker Will Ask
Have these ready:
- Year, make, model, VIN and value of the truck, plus the plow and spreader.
- Registered weight, and whether you will cross provincial borders.
- Who will drive it, with licence details and driving records.
- Where it is parked and how it is used in the off season.
- What you will plow: residential, commercial, sidewalks, salting.
- Expected revenue and number of sites.
Ask about seasonal coverage if the truck sits for most of the year, and read how to start a snow removal business for the rest of the setup.
Sources
- IBC: Types of auto coverage
- FSRA: Standard auto insurance policy
- ICBC: Basic insurance
- ICBC: Extended third party liability
- IBC: Mandatory auto insurance requirements
- Ontario: CVOR
- Alberta: Safety Fitness Certificate
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Frequently Asked Questions
Can I plow for money with my personal auto policy?
Personal policies are priced on declared use. Tell your insurer or broker that the truck is used for paid plowing, since the wrong rating can put a claim at risk.
What is the minimum auto liability for a plow truck?
The legal minimum third party liability is $200,000 in Ontario, BC, Alberta and Saskatchewan. Many contracts ask for higher limits.
Does my auto policy cover slip and fall claims at the sites I plow?
Generally no. Slip and fall claims on the properties you clear are typically a general liability matter, which is a separate policy.