Across rural Saskatchewan, a lot of snow gets moved by farmers. The tractor and loader sit idle in winter, neighbours need yards and lanes opened, and acreage owners, rural businesses and sometimes RMs are willing to pay. It is good extra income. It also raises insurance and registration questions that are easy to overlook until something goes wrong.
This guide sets out the questions to settle before the first storm and who can answer them.
General information only, not legal or insurance advice. Confirm registration questions with SGI and coverage questions with your broker.
Farm Plates and Paid Work
SGI describes farm plates this way: "As the registered owner of a vehicle with farm plates, you (or whoever you allow) can drive the vehicle within Saskatchewan as a personal conveyance." SGI's farm vehicle information covers Class F and Class LV registrations.
Farm plates are registered for farm use. If you plow snow for pay, whether for neighbours, a rural business or an RM, check with SGI whether your plate class covers that use. Using a vehicle outside its registered use can affect your coverage when you need it most. Ask before the season, not after a collision on the grid road.
For how SGI plate insurance and private business coverage fit together, see SGI and plow trucks.
Does Your Farm Policy Cover Plowing for Others?
Farm policies are built for farming, and it is not safe to assume one extends to plowing snow for payment for other people. Depending on the policy and insurer, it may be excluded, may need to be declared, or may be allowed within limits. The only way to know is to ask your broker and get the answer in writing.
The exposures are different from farming:
- Slip and fall on other people's property. A customer or visitor falls in a yard or lot you cleared. See slip and fall liability.
- Property damage to buildings, vehicles, fences and fuel tanks you do not own.
- Road travel between jobs with a tractor, loader or truck. See commercial auto.
- Equipment damage or breakdown away from the farm. See equipment insurance and compact tractors.
A licensed broker can explain the options for the snow work, such as general liability and equipment coverage. Read more on insurance for farmers who plow snow.
Plowing for an RM
Some rural municipalities may hire local operators to clear roads or specific areas. If an RM offers you work, ask for the terms in writing: what you are expected to clear, when, what insurance and WCB paperwork they want, and who carries the risk if someone is hurt. Ask the RM directly about its own requirements, and have your broker review them before you sign. The snow removal contracts and insurance guide covers the clauses to watch.
Claims against municipalities follow their own statutory rules. See Saskatchewan slip and fall liability for snow contractors.
PST on Paid Snow Clearing
Saskatchewan's PST Regulations list "snow clearing and snow removal services" as a taxable service. Farmers who plow for pay should ask Saskatchewan's Ministry of Finance or an accountant whether they need to register for and charge PST on that income. See starting a snow removal business in Saskatchewan for the details.
Hired Help and WCB
If you hire someone to run a second tractor or shovel walks, ask WCB Saskatchewan how that work is classified. WCB Saskatchewan's 2021 classification placed snow removal under a road construction and earthwork code rather than an agricultural one. See WCB Saskatchewan for snow removal businesses.
A Pre-Season Checklist for Farm Plowers
- Ask SGI whether your plate class covers plowing for pay.
- Ask your broker, in writing, whether your farm policy covers snow work for others.
- Keep snow income, hours and fuel separate in your records so the work can be rated properly.
- Get any RM or business arrangement in writing.
- Check PST registration with the province or your accountant.
- Keep a simple log of each job: date, time, conditions and what you cleared.
Sources
- SGI: Farm vehicles
- The Provincial Sales Tax Regulations (Saskatchewan)
- WCB Saskatchewan: 2021 rate classification of industries
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Frequently Asked Questions
Can I plow snow for pay with a farm plated tractor in Saskatchewan?
Farm plates are registered for farm use. Check with SGI whether your plate class covers paid plowing, because using a vehicle outside its registered use can affect coverage.
Does my farm insurance cover plowing snow for neighbours?
Not necessarily. It depends on the policy and insurer. Ask your broker and get the answer in writing before the season.
Do I charge PST for plowing snow in Saskatchewan?
Snow clearing and snow removal services are listed as taxable services under the PST Regulations. Confirm your registration obligations with the province or an accountant.
What should I ask an RM before plowing for them?
Ask for written terms covering what you clear, when, the insurance and WCB paperwork required, and who carries the risk if someone is hurt, then have your broker review them.