No New Englander has to be reminded about the amount of snow that can fall in any given winter. As a contractor this presents the opportunity to earn additional income given so many homeowners and businesses are in desperate need of snow and ice removal.
The question is, would your NH Contractors Insurance cover you if your business damaged property or injured someone by doing such work?
In the past, the number of claims arising from incidental snow and ice removal was relatively low, so some insurance companies may have simply paid these smaller claims. However after a few bad years of heavy snowfall, the number of claims paid stemming from snow and ice removal increased significantly, causing some insurance companies to specifically exclude coverage for snow removal.
By NH law, insurance companies are required to notify the named insured via mail at the last known address of any coverage changes to the policy. This notice can come separately or in the renewal policy itself. Because of this it is important to pay attention to all documents you receive from your insurance company. If you are still not sure or did not see a specific notice, you should call your insurance agent to find out if your insurance company has added the exclusion. It may have been sent to you several years ago, so double check.
The definition of snow and ice operations will be spelled out in the policy's exclusion notice as it can vary by company; however a sample of a snow and ice operation exclusion from Merchants Insurance Group, a carrier HPM Insurance represents, includes, but is not limited to:
Talk to your insurance professional because even though a carrier may be imposing an exclusion, it is typically because the company was not notified in advance that your business was engaging in such operations. Most insurance companies will provide the option for you to purchase the coverage and hence remove the exclusion. Referring to Merchants, this will cost between $50 and $150 flat annual charge.
Some companies may also allow you to purchase coverage but it will be audit-able at the end of your policy term. Because of this, it is critical that you have payroll records specifying snow removal.
As a contractor you need to be aware that workmanship is not covered regardless if you have snow and ice removal coverage or not. You are expected to be able to perform the job hired for so if you damage someone's roof in the process of removing snow, the workmanship exclusion would apply and there would most likely not be coverage. Why even buy insurance then? Here are some scenarios where coverage may apply:
It will snow. Ensure you and your business are protected with not just a NH Contractors Insurance policy but the right insurance that can protect the business you have worked so hard to build.