How Much Does Snow Plowing And Ice Removal Insurance Cost? 2025 Rates

In 2025, U.S. snow plowing businesses can expect to pay between $540 and $1,260 annually for a general liability policy, averaging $45 to $105 per month. The primary cost drivers are location, services offered, number of employees, business size, coverage limits, and years in business.

How Much Does Snow Plowing Insurance Cost?

The average snow plowing business in the U.S. pays between $540 and $1,260 per year for a full business insurance package. That breaks down to roughly $45 to $105 per month. However, this is just a ballpark range and actual costs can vary widely depending on your specific situation.

Every snow plowing business has its own unique risks and insurance needs, which is why there’s no one-size-fits-all premium. A single operator handling a few residential driveways will pay far less than a company with a fleet of plow trucks servicing commercial lots and municipal roads. The type of properties you service, your contract structure, the value of your equipment, and your location can all influence your insurance costs.

For example, snow plowing businesses operating in areas with heavy snowfall, high traffic, or a history of slip-and-fall lawsuits may pay more for liability coverage. Likewise, a company that uses multiple trucks and salt spreaders will likely have higher equipment and auto premiums compared to someone using a single pickup truck for light-duty work.

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Services offered (affects overall risk)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Business interruption coverage and other add-ons

Understanding these variables can help you better estimate your insurance needs and prepare for the real costs of protecting your snow plowing business.

Average Snow Plowing Insurance Costs For Coverage Types

When it comes to protecting your snow plowing business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan.

Here’s a closer look at the major coverages most snow plowing businesses need.

• General liability insurance: $45 per month
• Business owner’s policy: $100 per month
• Workers’ compensation insurance: $246 per month
• Commercial auto insurance: $163 per month
• Commercial umbrella insurance: $83 per month
• Contractor’s tools and equipment: $16 per month

General Liability Insurance

The average cost of general liability insurance for a snow plowing business is about $45 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a pedestrian slips and falls on a sidewalk you recently plowed and sustains an injury, this policy can help cover their medical expenses and your legal defense costs.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business size, location, customer traffic volume, previous claims history, and whether high-risk activities are offered.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $100 per month for a snow plowing business.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to the business’s equipment. For example, if a fire damages your garage and plow trucks, or if your snowblowers are stolen from a locked facility, a BOP can help pay for repairs, replacements, and recovery costs.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the location risk, business revenue, number of employees, and any optional endorsements like business interruption insurance.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a snow plowing business is around $246 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if a snow plow operator slips on icy pavement while clearing a parking lot and suffers a back injury, workers’ comp would help cover their hospital bills, physical therapy, and a portion of their lost income during recovery.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Commercial Auto Insurance

The average cost of commercial auto insurance for a snow plowing business is about $163 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if one of your plow truck drivers accidentally hits a parked car while clearing snow from a commercial lot, this policy can help pay for the repair costs and any third-party injury or property damage claims.

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for deliveries.

Commercial Umbrella Insurance

The average cost of commercial umbrella insurance for a snow plowing business is about $83 per month.

Commercial umbrella insurance provides extra liability coverage that goes beyond the limits of your existing policies, such as general liability, commercial auto, or employer’s liability insurance. It acts as a financial safety net when a large claim exceeds the coverage limits of your primary policies.

Commercial umbrella insurance is especially valuable for snow plowing businesses, where high-risk conditions and expensive equipment increase the chance of costly liability claims.

Contractor’s Tools And Equipment

The average cost of contractor’s tools and equipment insurance for a snow plowing business is about $16 per month.

Contractor’s tools and equipment insurance covers the repair or replacement of tools, machinery, and mobile equipment used in your snow plowing operations if they are stolen, damaged, or lost due to covered events like theft, fire, or vandalism.

For example, if your snowblower, salt spreader, or portable generator is stolen from a job site or damaged in transit, this coverage can help pay to replace or repair the equipment quickly, so you can stay on schedule and avoid service disruptions.

What Factors Impact Your Snow Plowing Insurance Costs?

Insurance premiums for snow plowing businesses are carefully determined by underwriters based on your unique risk profile. Factors such as the types of properties you service (residential vs. commercial), your operating region’s snowfall frequency, and your past claims history all play a role in what you’ll pay for coverage.

Type Of Snow Plowing Services

The kind of properties you service, residential, commercial, or municipal, affects your insurance cost. Commercial lots and city streets usually carry more risk due to higher traffic and potential for injury or property damage, which can raise your premium.

Size Of Your Fleet

The more trucks and equipment you own and operate, the higher your insurance costs will be. More vehicles mean more chances for accidents, breakdowns, or claims.

Location And Weather

Where you do business matters. If you operate in areas with heavy or frequent snowfall, you’re more likely to face dangerous driving conditions and claims. Riskier weather = higher premiums.

Type And Value Of Equipment

High-value equipment like salt spreaders, snow blowers, and plow attachments will increase the cost to insure. If you’re using older or poorly maintained gear, that can also raise your premium due to a higher chance of breakdowns or accidents.

Employee Experience And Training

Insurers look at how experienced and trained your plow operators are. Teams with proper safety training and a clean driving history tend to get lower insurance rates because they’re considered less likely to cause accidents.

How To Lower Your Snow Plowing Insurance Costs

Running a snow plowing business is expensive, but your insurance bill doesn’t have to break the bank. While you can’t eliminate the need for coverage, you can take smart steps to reduce your premiums without sacrificing protection. Here are some practical ways to lower your snow plowing insurance costs:

1. Bundle Your Policies

One of the easiest ways to save is by bundling multiple policies. Most insurers offer a Business Owner’s Policy (BOP) that combines general liability and property insurance at a lower rate than if you bought them separately. If you also need workers’ compensation, bundling both through the same provider can lead to additional discounts. Not only does this simplify your paperwork, but it also makes your coverage more cost-efficient.

2. Ask About Discounts

Insurance companies often reward businesses that commit to a policy long-term. Ask your provider if they offer multi-year discounts for signing a two- or three-year agreement instead of renewing annually. You might also qualify for lower rates if you pay your premium in full instead of in monthly installments.

3. Implement Safety Measures

Taking proactive steps to reduce the risk of injuries or property damage can help lower your premiums over time. For example, training drivers on safe plowing techniques, using high-visibility clothing, properly maintaining your trucks and equipment, and keeping detailed service logs can all help minimize accidents. These safety measures not only protect your crew and clients but also show insurers that you take risk management seriously.

4. Create A Safe Working Environment

A strong safety program can help reduce your workers’ compensation insurance costs by preventing accidents before they happen. For snow plowing businesses, this includes training employees on safe equipment operation, proper lifting techniques for loading salt or gear, how to navigate icy conditions, and emergency response procedures during severe weather

5. Adjust Your Deductible

Your deductible is the amount you pay out of pocket before insurance coverage kicks in. Choosing a higher deductible can significantly reduce your monthly premiums. Just make sure you can comfortably cover that amount if a claim arises.