Landscaping and snow removal insurance: one business, two exposures

A grounds crew that plows in winter is two operations to an underwriter, and the forms treat them differently. Workers compensation is built from payroll by class, and the winter payroll is not the summer class. The liability form treats a plow on a truck as an auto, so the slip-and-fall on a lot you cleared hours earlier can land outside the general liability policy unless an endorsement puts it back, and carriers can exclude snow work from a landscaper's policy outright. The property manager's contract wants one certificate covering both seasons. The fix is disclosure: a policy written to both operations, before the first storm.

Two operations, priced separately

The seasonal business has a shape that insurance forms were not built around. From March to November the trucks pull mowing trailers and the crew plants, edges, and lays pavers. From the first storm to the last, the same trucks carry plows, the same crew salts lots at three in the morning, and the clients are property managers rather than homeowners. To the owner it is one company with a calendar. To an underwriter it is two books of business, and the pricing follows the split.

Start with workers compensation, because the split is arithmetic there. The Texas Department of Insurance describes premium as payroll assigned to classifications, the payroll in each classification multiplied by that classification's rate per $100, with an experience modifier for the employer's own loss history applied on top (TDI, workers compensation rate guide). Grounds maintenance has a classification of its own, code 0042 in the New York rating board's manual, which covers planting and maintaining lawns, gardens, trees, and shrubs at customer locations and includes drivers (NYCIRB, class 0042). Where a rating bureau puts plowing payroll is its own question, but the mechanism is the point: the winter hours are assigned somewhere, and an application that reports summer payroll only has reported half a year. The landscaping insurance page carries the summer side in full; this page is about what changes when the plow goes on.

On the liability side the split is about what the form calls the truck. ISO's classification for a snow and ice removal contractor directs the underwriter to attach a snowplowing operations endorsement, CG 22 92, and IRMI explains why: its effect "is to expressly state that exclusion g. of the CGL (the auto exclusion) does not apply to any auto used for snow plowing operations for bodily injury or property damage that falls within the products-completed operations hazard" (IRMI, The ISO Classification System and the CGL Policy). In plain terms, a truck with a plow on it is an auto to the general liability policy, and the standard form sends auto losses to the auto policy. The endorsement exists so that the claim which arrives after the plowing is done, the tenant who falls on the lot at seven the next morning, stays inside the liability policy where completed operations coverage lives. A landscaper whose policy was written to grounds work has no reason to carry that endorsement, which is the gap the same IRMI piece warns about when a contractor does not disclose snow work.

The snow removal exclusion on a landscaper's policy

The endorsement gap is the quiet version. The loud version is an exclusion. The Snow and Ice Management Association's advice to its own members is blunt: "Make sure that your policy does not have a snow and ice removal exclusion; or if it has a designated classifications endorsement, make sure that snow removal is a covered classification" (SIMA, On the Hook). Both instruments are real. A carrier that writes grounds crews can attach an endorsement that names snow and ice removal and removes it from the policy, and a designated operations or designated classifications endorsement does the same job by listing what is covered and leaving the rest out; IRMI describes the designated operations exclusion endorsement as one "used to exclude coverage under the commercial general liability (CGL) policy for specific operations" (IRMI, designated operations exclusion endorsement). A landscaper who reads only the declarations page sees general liability and assumes the plowing is inside it. The endorsements page is where the answer is.

The remedy is the same in every version: tell the underwriter you plow, describe the accounts, and get the policy written to both operations. That may mean the snowplowing endorsement on the liability form, a classification for the winter payroll on the workers compensation policy, and the plow itself scheduled on the commercial auto policy as permanently attached equipment. It will cost more than a summer-only policy, because it is covering more. What it replaces is a winter claim with no policy behind it.

The property manager's contract and the year-round certificate

Winter is where the client changes. Residential mowing clients rarely ask for a certificate; the commercial lot, the retail center, and the office park are managed, and the manager's contract is a risk transfer document. SIMA puts it plainly: "Using risk transfer tools, the property managers will transfer the risks of snow and ice removal to the contractor performing the work," and "Commercial contracts are always evolving; and more and more frequently, property management companies and owners are transferring their risks to the contractors performing the work" (SIMA, On the Hook). The insurance clause is where the transfer lands: the coverages the manager wants to see, the limits, additional insured status for ongoing and completed operations, and the term the certificate has to run.

That term is the dual-operation problem in one line. A manager who buys both seasons from the same contractor wants one certificate that covers both, and a policy that was written in April to a grounds crew and renewed in April again has to show the snow endorsements in January. None of these parties publishes a limit we can print, so the instruction is procedural: read the insurance clause before you price the account, hand it to your agent, and have the policy written to the clause rather than hoping the certificate will stretch. A certificate that does not show what the contract asks for is not proof of anything, and the general liability policy's four categories, bodily injury, damage to others' property, personal injury, and advertising injury (NAIC, Insure U: Small Business Insurance), do not by themselves say whether the lot is inside them.

Commercial auto through the year

The truck is the constant. In summer it pulls the trailer; in winter it pushes the plow, and in both seasons it is a business vehicle that a personal auto policy may not cover for business use (NAIC). Schedule the plow and the spreader on the commercial auto policy as attached equipment so that the truck's physical damage coverage knows they exist, and tell the carrier that the vehicle's use changes with the season. Because the same truck works all year, the question of suspending its coverage in the off-season is not this page's question. It belongs to the dedicated plow truck that is parked from April to November, and the snow plow insurance page answers it from the suspension of coverage endorsement, as far as that endorsement goes. Crews that also cut trees carry a third set of equipment and a third workers compensation class; the tree service insurance page explains that one.

What moves a landscaping and snow removal premium

The two seasons price separately, so a blended number would describe neither. The share of revenue that is snow, because the winter side is priced as its own operation and a contractor whose book is mostly commercial lots is read differently from one who plows a dozen driveways. The accounts themselves: retail centers with public foot traffic, medical and office parks, residential streets, and municipal work each carry a different slip-and-fall picture. Payroll in each season and the classifications it lands in. The number of trucks with plows and the equipment attached to them. Whether the liability policy carries the snowplowing endorsement and whether any exclusion has been removed. Documentation, meaning logs of when each lot was plowed and salted, which an underwriter reads as the defense to the completed operations claim. Claims history through the experience modifier. And your state's workers compensation rules; the Texas position is on the Texas hub, though Texas is not where most of this page's readers plow.

Related pages

Frequently Asked Questions

Does my landscaping insurance cover snow removal?
Not unless the policy says so. Carriers can attach a snow and ice removal exclusion to a general liability policy, or limit the policy to designated classifications that do not include snow work, and the trade's own association tells contractors to check for both. The plow truck is also an auto to the liability form, so the driving side belongs to commercial auto and the after-you-leave slip-and-fall needs an endorsement to stay inside the liability policy. Tell the underwriter you plow before the first storm, in writing.
Why are landscaping and snow removal priced separately?
Because they are different exposures under different forms. Workers compensation premium is built from payroll assigned to classifications, and summer grounds payroll and winter plowing payroll are not the same class. On the liability side, a plow on a truck is an auto, and the loss that follows plowing, someone falling on the lot hours after you left, is a completed operations claim that the standard form pushes toward the auto policy unless an endorsement brings it back. An underwriter who sees both operations prices both; one who sees only the summer prices only the summer, and the winter claim finds the gap.
What do property managers require from a landscaping and snow contractor?
A contract that moves the risk to you, and a certificate that proves you can carry it. The snow industry's association describes property managers using risk transfer tools to push snow and ice liability onto the contractor doing the work, and notes that those contracts keep changing. The insurance clause is where the demand lives: which coverages, which limits, additional insured status for ongoing and completed operations, and how long the certificate has to run. Read that clause before pricing the season, because a certificate that lapses in April on a contract that runs through the year is a breach as well as a gap.
Can I suspend the plow truck's coverage in summer if it is also my landscaping truck?
If it is the same truck, it is working in summer, and suspension is not the question. The suspension of coverage endorsement described by IRMI suspends certain coverages on specified vehicles that will not be used for 30 days or more, which fits a dedicated plow truck parked from April to November and does not fit a truck that pulls the mowing trailer. Which coverages it touches, what your state requires of a registered vehicle, and whether your carrier offers it are the three questions, and the snow plow page takes them one at a time.