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How Much Liability Do Snow Contractors Need?

There is no single amount every snow contractor must carry. We are not aware of a provincial law that sets a general liability minimum for snow removal businesses. In practice, the amount is usually set by your contracts, and sometimes by a municipal licence. Examples we reviewed range from $2 million to $5 million per occurrence. The right limit for your business is something to decide with a licensed broker.

Where Limits Come From

Client Contracts and Tenders

Most commercial and public clients state a minimum. Examples from published documents:

  • Bruce Grey Catholic District School Board snow contract template: general liability of not less than $2,000,000 per occurrence, and $2,000,000 auto liability.
  • Township of Otonabee-South Monaghan facilities winter maintenance RFP: $5,000,000 per occurrence and $10,000,000 aggregate general liability, and $5,000,000 on owned vehicles.
  • Town of Slave Lake, Alberta, 2020 to 2023 Government Centre tender: $5,000,000 general liability and $2,000,000 auto liability.

These are individual documents, not a statement of what is typical. Every client sets its own requirement.

Municipal Licences

Some cities require insurance as a licence condition. Ottawa raised the minimum insurance for licensed snow plow contractors from $1 million to $2 million, effective October 16, 2024. See starting a snow removal business in Ontario.

Auto Minimums

For vehicles, the legal minimum third party liability is $200,000 in Ontario, BC, Alberta and Saskatchewan. Contracts often ask for more.

Factors a Broker May Consider

  • the limits your current and target contracts require
  • the types of sites you service, such as retail plazas or residential driveways
  • whether clients are named as additional insured and share your limits
  • your aggregate limit and how many claims could arise in one season
  • whether an umbrella policy is a practical way to reach a higher limit

Learn More

See $2M vs $5M liability, per occurrence vs aggregate limits and general liability for snow removal.

General information only, not insurance advice.

SnowPlowInsurance.ca is an independent referral service, not an insurance company or broker. We connect you with licensed brokers who provide quotes and advice. How this site works.

Sources

Frequently Asked Questions

Is $2 million liability standard for snow removal?

There is no standard that applies to everyone. Some contracts ask for $2 million, others $5 million or different amounts.

We are not aware of a provincial law that sets a general liability minimum for snow removal businesses, though some municipal licences do and auto insurance has a $200,000 legal minimum.

How do I meet a higher contract limit?

Contractors commonly raise their primary limit or add an umbrella policy. A broker can explain the options.