Why Snow Removal Is Often Excluded From Insurance Policies

By Jenny Holly Hansen | Langley News | November 19, 2025

When winter hits, businesses and property owners turn their attention to snow and ice removal—one of the most essential, yet most hazardous, seasonal operations. What surprises many organizations, however, is that snow removal is often excluded from standard insurance policies, and adding it back in can dramatically raise premiums and possibly make them uninsurable. Understanding why requires a look at the unique liability risks involved.

Slip-and-Fall Liability: The Biggest Reason for Exclusions

Snow and ice removal directly affects public and employee safety. If snow or ice isn’t cleared sufficiently or quickly enough, the risk of slips, falls, fractures, and head injuries skyrockets. These incidents often lead to:

High-value bodily injury claims
Long-term medical and rehabilitation costs
Legal action against the contractor or property owner
Reputational harm to the business

Courts often view snow removal contractors as directly responsible for the condition of the property. One misjudged snowfall, one untreated patch of ice, or one missed walkway can trigger a very costly claim.

Because the likelihood and severity of injuries are so high, insurers classify snow removal as an elevated—sometimes extreme—liability exposure.

Property Damage Risks Add Another Layer of Exposure

Beyond injuries, snow removal can easily lead to property damage, especially with heavy equipment. Common losses include:

Damaged curbs, retaining walls, fences, and landscaping
Cracked pavement
Broken pipes and underground infrastructure
Scratched vehicles or dented equipment in parking lots

Even small mistakes can create expensive repairs. Insurers know that snow removal happens under strenuous and low-visibility conditions, often while crews work overnight, manage fatigue, or operate heavy machinery on slippery surfaces.

This combination makes claims much more likely—and more expensive.

The Responsibility Standard Is Extremely High

Snow removal is not simply “pushing snow.” It’s risk management under a microscope. Contractors and property owners are expected to meet very high standards, including:

Being available 24/7
Responding quickly to unexpected weather
Using proper equipment
Applying salt or de-icing agents effectively
Keeping detailed logs and timestamps of all actions
Monitoring changing conditions throughout the day

A failure in any of these areas can be viewed as negligence. Because expectations are so stringent, insurers are cautious about taking on the exposure.

Why Insurance Companies Exclude Snow Removal

Here are the main reasons insurers often exclude snow removal from general liability policies:

1/High Frequency of Claims

Slip-and-fall claims related to ice are among the most common insurance claims in winter.

2/High Severity of Loss

Medical costs and lawsuits associated with bodily injury can reach six or seven figures.

3/Operational Complexity

Insurers see a high correlation between snow removal and operational errors due to:

Positioning equipment near vehicles
Operating at night
Fatigue from long shifts
Challenging terrain hidden under snow

5/Contractual Liability

Many snow removal agreements place heavy responsibility on the contractor, sometimes requiring them to indemnify property owners completely. Insurers may see this as excessive—and decline coverage.

For these reasons, snow removal is commonly excluded unless the insured specifically requests it and can demonstrate strong risk controls.

Why Snow Removal Coverage Can Be Costly—or Denied Entirely

When coverage is available, premiums can increase significantly. Insurers look at:

Historical claims
Types of property being serviced
Equipment used
Staff training and experience
Record-keeping practices
Response times and service agreements

Organizations that cannot demonstrate effective risk management—especially those without detailed logs or proper de-icing protocols—may simply be considered too high a risk to insure.

In some cases, insurers refuse coverage altogether, particularly for contractors who primarily focus on snow removal or who handle large, high-traffic properties.

What Organizations Can Do To Reduce Their Risk

Even in a high-risk category, businesses can strengthen their insurance profile by investing in:

Clear, timed service logs
GPS tracking for equipment
Written snow response procedures
Staff training and certification
Pre-season site inspections
Proper de-icing materials and equipment
Well-structured contracts that do not assume unlimited liability

Demonstrating professionalism, preparedness, and accountability makes insurers more comfortable and more willing to provide coverage.

Final Thoughts

Snow and ice removal is not just a winter service—it’s a high-stakes operation where safety, timing, and precision matter. Because the liability is significant and the risk of claims is high, insurers approach snow removal with caution, leading to exclusions, higher premiums, or difficulty finding coverage.

Understanding why snow removal is treated as such a high-risk activity helps organizations prepare, protect themselves, and negotiate better terms with their insurance provider. With strong procedures and the right expertise, businesses can stay safe—and stay insurable—all winter long.

Let’s Keep Talking:

Jenny is a business insurance broker with Navacord. With 19 years experience, she will well versed in the technical aspects of business insurance coverages.

She can be reached at 604-317-6755 or jenny.hansen@navacord.com

Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/.

TAGS: #Jenny Holly Hansen #Protect Your Business #Snow Removal Exclusion #Bodily Injury #Property Damage