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Hiring Snow Removal Subcontractors Without Taking on Their Risk

Subcontractors let a snow business take on more sites than its own trucks can cover. They also bring risk. If a sub's plow damages a car, a pedestrian falls on a lot the sub serviced, or the sub has not paid its workers compensation premiums, the claim or the bill can come back to you and to your client.

This guide covers the paperwork and contract terms contractors commonly use to keep a subcontractor's risk with the subcontractor.

General information only, not legal or insurance advice. Rules change; confirm with the regulator or agency named on this page, a lawyer for your specific situation, and your broker.

Why a Sub's Problems Become Yours

When you sign a contract with a property manager, you are usually responsible for the whole site, including work you hand to others. The injured person may sue everyone connected with the property. Your client will look to you. And in every province we cover, workers compensation boards can hold a hiring business responsible for a contractor's unpaid premiums in some situations.

Step 1: Set Written Insurance Requirements

SIMA's subcontractor guidance advises contractors to "verify their insurance to ensure they meet your minimum requirements." Decide your minimums in advance, with your broker's help, and put them in writing. Many contractors mirror the requirements in their own client contracts, since the client's requirements usually flow down to the work you subcontract.

Requirements often cover:

Step 2: Collect and Check the Certificate

A certificate of insurance is evidence that coverage is in place. It is not the policy. Coverage is set by the policy and its endorsements. The Insurance Bureau of Canada describes a certificate as a "written document stating that insurance is in effect," with a general statement of coverage. In Canada the industry standard form is CSIO's Certificate of Liability Insurance.

When a certificate arrives, check:

  • the named insured matches the business you are hiring
  • the policy period covers the whole season
  • the limits meet your written minimums
  • your business is shown as additional insured where required
  • the description of operations includes snow removal

Track expiry dates so nothing lapses mid winter. Our subcontractor certificate tracker gives you a table to do that.

Step 3: Get Workers Compensation Clearance

Each province has its own rules, and each one gives the hiring business a reason to check.

  • Ontario (WSIB): a clearance shows a contractor "is registered and up-to-date." Clearances are valid for up to 90 days. Under WSIB policy, a principal can be liable for a contractor's unpaid premiums up to the value of the labour portion of the contract, and issuing a clearance waives that liability for the certificate's validity period. See WSIB for snow removal.
  • British Columbia (WorkSafeBC): "If you hire a registered subcontractor who is not making required payments to WorkSafeBC, you could be liable for insurance premiums relating to the work or service they provided to you." WorkSafeBC advises getting a clearance letter addressed to you before and after the work. See WorkSafeBC for snow removal.
  • Alberta (WCB Alberta): if you hire a contractor who does not have WCB coverage, you could be responsible for outstanding premiums. WCB suggests clearances before work starts, during the contract and before final payment. See WCB Alberta for snow removal.
  • Saskatchewan (WCB Saskatchewan): "By requesting clearances, principals protect themselves from having to pay any overdue premiums the contractor owes the WCB." If a contractor is not registered, WCB Saskatchewan says they are considered a worker of the principal. See WCB Saskatchewan for snow removal.

Step 4: Put It in the Subcontract

A written subcontract should set out the scope of work, service levels, insurance requirements, the obligation to keep coverage in force, and what happens if coverage lapses. Many include an indemnity clause in which the sub agrees to cover claims arising from its work. Have a lawyer review the wording, and ask your broker how your own policy treats work done by subcontractors. See does my policy cover subcontractors.

Step 5: Keep Records Through the Season

Ask subs to keep site logs in the same format you use, and collect them. If a claim arrives months later, you will need to show who serviced the site, when and what they did.

Tell Your Broker About Your Subs

Insurers usually want to know how much of your work is subcontracted and whether you collect certificates. Good subcontractor controls can help your broker present your business to insurers. If you work as a sub yourself, see snow removal subcontractors.

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.

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Frequently Asked Questions

What insurance should a snow removal subcontractor have?

Hiring contractors commonly ask for general liability without a snow and ice exclusion, commercial auto for plow trucks, additional insured status and workers compensation clearance. Your own client contracts and your broker can help set the minimums.

Is a certificate of insurance enough?

A certificate is evidence of coverage, not the policy itself. Check that the details match your requirements and track the expiry date.

How often should I get a WSIB clearance for a sub?

WSIB clearances are valid for up to 90 days, so a sub working all winter will usually need more than one. Check before work begins and renew if the job runs longer.

Can I be liable for my subcontractor's workers compensation premiums?

In Ontario, BC, Alberta and Saskatchewan, the boards say a hiring business can be responsible for a contractor's unpaid premiums in some situations. Clearances protect you.