A snow removal business earns most of its revenue in a few months. A fire in the shop in December, a theft of key equipment before a storm, or a loss that shuts down operations mid season can wipe out a large share of the year's income. Business interruption coverage is designed to replace that lost income while you recover.
How It Works
Business interruption coverage generally responds when a covered property loss, such as fire or theft, interrupts your operations. It can cover lost income, ongoing expenses like payroll and loan payments, and extra costs to keep operating, such as renting replacement equipment.
Seasonal Timing Matters
Because snow revenue is concentrated, the same loss can have very different impacts depending on when it happens. Talk to your broker about how the indemnity period and limits reflect your season. Seasonal contracts that require you to perform whether or not you have equipment add urgency.
Equipment Breakdown
Standard equipment coverage often excludes mechanical breakdown. If a loader failure in January would stop your commercial contracts, ask your broker about equipment breakdown coverage and rental reimbursement. See equipment insurance.
What It Does Not Do
Business interruption does not respond to a light snow year, a lost contract or a market downturn. It follows a covered physical loss.
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Frequently Asked Questions
Does business interruption pay if it does not snow?
No. It responds to lost income following a covered property loss, not weather patterns.
Can I get coverage for rental equipment if my loader breaks down?
Rental reimbursement may be available with equipment breakdown coverage. Ask your broker.