A deductible is the amount you pay on a claim before the insurer pays the rest. The Insurance Bureau of Canada defines it as "an agreed specified amount that the insured must pay on a claim before the insurance company will cover the rest."
Why It Matters for Snow Contractors
A snow removal business may carry several deductibles: one on plow truck insurance for physical damage, one on equipment insurance for blades, spreaders and machines, and sometimes one on general liability for property damage claims.
The deductible is part of the trade-off between premium and risk. A higher deductible generally lowers the premium, but you absorb more of each claim. Snow work can produce small property damage claims, such as curbs, lawns and mailboxes, so the level you choose can matter over a season.
Example
Your skid steer is damaged when it slides into a light post. The repair costs more than your equipment deductible. You pay the deductible amount, and the insurer covers the rest of the covered repair, subject to the policy terms.
Related Terms and Guides
- How to lower snow plow insurance costs
- How much does snow plow insurance cost?
- Does snow removal insurance cover damaged lawns and curbs?
General information only, not insurance or legal advice. Policy wordings differ; a licensed broker can explain how your own policy and contracts treat this.
Further reading: Insurance Bureau of Canada: Insurance glossary
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.
Frequently Asked Questions
Should I pay small claims myself to avoid using my deductible?
Talk to your broker first. Policies generally require incidents to be reported, and small claims can grow.
Can I choose my deductible?
Insurers often offer deductible options. A broker can explain the trade-offs.