“Let it Snow, Let it Snow, Let it Snow”

Some Things You Need to Know About Snow Maintenance Work

By Gary Clevenger, CNA Insurance

It’s no secret that many spa and swimming pool contractors in northern states supplement revenue during the winter months by doing snow plowing, salting and sanding work. With the snow season fast approaching, many APSP contractors are gearing up for that first big snowstorm. So this is good time to educate APSP members as well as non-members on the importance of risk management before engaging in snow and ice maintenance work.

 Liability Issues

Contractors doing snow plowing, salting and sanding work are exposed to liability lawsuits and claims from third parties due to injuries caused by slipping and falling on the premises where the snow and ice removal work was done. This includes parking lots, driveway areas, walkways, and sidewalks.

Snow and ice work is high-hazard from an insurance and risk management standpoint because it can result in costly claims and litigation. The problem is so costly, that some insurance carriers won’t insure contractors who do snow plow and ice removal work, or they routinely put“snow plow” exclusion on the policy.

Are you covered?

If your firm does snow and ice maintenance work, it is critical that you talk to your insurance agent or broker to confirm that you have coverage for this work under your Commercial General Liability (CGL) policy and your Business Automobile Policy (BAP) or equivalent policies such as Business Owners Policies (BOPs).

• Be sure snow plowing is not excluded from your CGL, BAP or BOP policies, as some insurers exclude all coverage for snow and ice maintenance work.

• To reduce the possibility of serious gaps in coverage and disputes between different insurers as to whose policy will respond to a claim or lawsuit, it is highly advisable that your company’s CGL and BAP policies be written by the same insurance carrier.

• Be sure CG 22 92 - Snow Plow Operations Coverage Endorsement (or equivalent) is attached to your company’s CGL or BOP policy.

ISO Coverage Endorsement Available

CG 22 92 - Snow Plow Operations Coverage Endorsement is an Insurance Services Office (ISO) endorsement for risks that perform snow and ice maintenance work using an “auto” (such as a pickup truck).

Potential claims from third parties could include loss of use or damage to a vehicle that cannot be moved because of the insured's completed snow plow work. Or more often, claims from third parties alleging bodily injury (i.e. slip and falls) because of inadequate clearing of snow from a street, parking lot, walkway, etc. would also fall within the products-completed operations hazard and would be excluded from coverage.

The bottom line here is to make sure your company’s Commercial General Liability policy (or Business Owners Policy) includes important coverage endorsement (CG2292) or an equivalent. Talk to your insurance agent today.

Risk Management Tips for Contractors Who Perform Snow & Ice Maintenance Work

While we are on the subject of snow and ice maintenance work, below are some important risk management tips that can help you avoid claim and lawsuits, and if a claim or lawsuit is filed against your company, potentially put you and your insurance carrier in a better defense position:

• Always use a written contract for snow and ice work – no “handshake” agreements. This contract should be developed and/or reviewed by your company’s legal counsel.

• The contract should clearly state who is responsible for determining when and where ice-melting products will be used, how often the site will be monitored, and by whom.

• The contract should stipulate that your company will not be liable for slip and falls on the customer's premises, however caused, to the fullest extent permitted by law.

• The contract should contain a detailed description of the work to be done, to prevent unintended assumption of liability. Diagrams and/or site maps are encouraged. The contract should also stipulate any areas of the client’s property not subject to the contract, again to avoid unintended assumption of liability.

• The contract should avoid terms such as "snow removal" and "de-icing" as it is often impossible to remove all snow and ice.

• In describing the work to be done, the contract should avoid broad statements such as: "the contractor will maintain the client’s property so that it is free of snow and ice" or "the contractor will ensure that driveways, lots and walkways will be clear at all times”. Again, the issue here is that it is often impossible to fulfill these types of broad obligations.

• Keep detailed records of all snow and ice maintenance work, including time of day, what work was done and by whom, weather conditions, salt or other materials applied etc. Detailed, accurate records of the completed work can greatly enhance your ability to defend against fraudulent third party slip and fall claims.

The purpose of this article is to provide information, rather than advice or opinion. It is accurate to the best of the author’s knowledge as of the date of the article. Accordingly, this article should not be viewed as a substitute for the guidance and recommendations of a retained professional. In addition, CNA does not endorse any coverages, systems, processes or protocols addressed herein unless they are produced or created by CNA. To the extent this article contains any examples, please note that they are for illustrative purposes only and any similarity to actual individuals, entities, places or situations is unintentional and purely coincidental. In addition, any examples are not intended to establish any standards of care, to serve as legal advice appropriate for any particular factual situations, or to provide an acknowledgement that any given factual situation is covered under any CNA insurance policy. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All CNA products and services may not be available in all states and may be subject to change without notice. CNA is a registered trademark of CNA Financial Corporation. Copyright © 2009

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