Winter is here…. and in the Northeast, these months bring snow and ice that can unfortunately lead to slips and falls. Because of overregulation, litigation has increased leading to large insurance premiums and tighter contractual requirements by property owners and general contractors making it difficult for snow contractors to afford the insurance coverage needed. Our goal is to help snow removal contractors and property owners understand their risk, and to help mitigate that risk, with complete snow plow insurance in Massachusetts.
Papadopoulos v. Target Corporation
For more than 100 years, case law in Massachusetts held that property owners who failed to remove “natural accumulations” could not be held liable in the event of a claim. In 2010, a Supreme Court decision Papadopoulos v. Target Corporation 7 Mass. 368 changed this case law. Papadopoulos suffered a broken pelvis when he slipped and fell in the parking lot of the Liberty Tree Mall in Danvers. He filed suit against Target, the store in front of which he fell, and their snow removal contractors.
The 2010 decision ruled that property owners (owner occupied or rental) can be held liable for snow-related injuries and:
“have a duty to make a reasonable effort to remove the snow and the hazards of freezing snow and ice regardless of natural or unnatural accumulations”.
Where Do We Stand Now?
Many Massachusetts snow contractors have understandably decided to sit out the snow season to avoid the headaches involved.
Using a hold harmless agreements with indemnification provisions, property owners (or general contractors) are able to push this liability onto the snow contractors making them ultimately responsible for the maintenance and care of the parking lot, sidewalks and walkways. As a result, insurance carriers are the ones accepting the risk on behalf of the snow contractor.
After a wave of lawsuits over the last decade, many insurance companies have exited the snow plowing market leading to less competition and increased premiums. Insurers that have continued to accept snow exposure risks have become increasingly selective and may refuse to cover properties with high foot traffic.
I Have Commercial Auto & General Liability Policies, Am I Fully Covered For Snow Removal?
Short answer – NO.
The commercial auto policy coverage serves to protect against third-party injuries or property damage while you are driving. For example, when plowing a commercial property you hit a car, your policy would cover the physical damage.
On your General Liability, you may have coverage with a “Snow & Ice Removal” class if your insurer is able to add it to your policy. If Snow & Ice Removal hasn’t been added to the General Liability portion of your policy, you must obtain a separate snowplow policy. In this case, contractors must buy a policy available through a surplus lines market (insurers for high-risk operations). These policies are much more expensive and can include a number of landmine exclusions and may not have the necessary endorsements included within them.
In either case, any property owner (or general contractor) will require you to have the following endorsements added to your policy.
Snow Plow Insurance Endorsements
- Snow Plow Completed Operations
Like the Papadopoulos v. Target case mentioned previously – What if you leave the jobsite and the snow you plowed and salted, melts and refreezes causing someone to slip and fall?
An unendorsed general liability policy specifically excludes this situation and it’s likely that your insurance carrier can and likely will, deny coverage as a result of bodily injury that arises from these activities. What’s the solution? Fill the gap by adding the CG2292 Endorsement which provides completed operations coverage for an auto used for snowplowing.
- Additional Insured Status including Completed Operations
There are a number of versions of this endorsement including the CG 2010 (11/85 edition), which is the gold standard but difficult to obtain by most snow contractors because of the breadth of coverage. The next option would be to obtain comparable endorsements through the combination of CG2010 and CG2037. Every edition varies, and may or may not be acceptable, depending upon your requirements.
- Primary/Noncontributory wording
This controversial wording designates that the snow contractors policy is responsible for responding to a claim and that the property owner (or general contractor) policy will not contribute to the claim in any way.
- Waiver of Subrogation
This provision states that the snow contractor’s insurer will waive their right to subrogate against the property owner (or general contractor), and will not seek to recover funds even if the other party was at fault. The reason for this wording is to minimize cross suit claims between parties and allow for the timely settlement of claims, thereby avoiding costly litigation.
McSweeney & Ricci Can Help With Snow Plow Insurance in Massachusetts!
By working with a specialist who understands the nuances of these contractual requirements and has access to the top carriers, you’re able to reduce your risk and win more contracts. Our Commercial Insurance Division has over fifty years of experience insuring snow plow contractors and helping guide them through the insurance market place by:
- Reviewing snow removal contracts
- Ensuring you have the proper coverage and endorsements
- Providing best practices resources (snow removal logs and sample agreements)
- Keeping you up to date with snow removal legislation
Whether you’re a snow contractor or a property owner, you need to be protected from the risks that accompany the winter months in Massachusetts and throughout New England. For more information on Snow Plow Insurance for your business, contact us at (844) 501-1359
In addition to snow plow insurance in Massachusetts, McSweeney & Ricci Insurance has provided complete insurance solutions and trusted advice to families, individuals and businesses since 1964. For business insurance , personal insurance products such as home insurance or car insurance, life insurance, or even cyber fraud/cyber liability insurance, contact us today.
Sources:
Snow Magazine Online.com “Waivers of Subrogation”09/26/17 by Matthew Peterson
Massachusetts law about snow and ice | Mass.gov
Doubleday Law.com “Landlords must clear snow and ice after a snowstorm or risk legal liability” by Arthur Hardy-Doubleday 11/16/18
PAPADOPOULOS vs. TARGET CORPORATION, 457 Mass. 368 (masscases.com)
The ‘Primary and Noncontributory’ Tool Or Why this Requirement Should Disappear (insurancejournal.com)
