Snow plow insurance in Ontario: what it costs and what cities ask for

The numbers

• $1,800 a year: starting price for residential shovelling, $1M liability (Zensurance cost guide).
• $3,800 a year: starting price for one truck and plow in Ontario, $1M liability. Outside Ontario it’s $2,500 (same source).
• $1,000 a month or more: what Zensurance’s Ontario page says to expect for a basic policy with $1 million in coverage.

Those two Zensurance figures are far apart. $3,800 a year is the floor for a simple, clean operation. $12,000+ a year is closer to what plenty of operators hear. Your number depends on what you plow, whether you salt, and your claims history.

All of these are liability only. Commercial auto for the truck is on top.

Why Ontario costs more

Slip-and-fall lawsuits. Zensurance says Ontario pricing reflects how litigation plays out in the province.

In 2021 CBC talked to Christopher Thacker of Mr. Mow It All, a Toronto lawn care company that shovels driveways for about 500 customers. His premium went from $5,000 in 2016 to $70,000, then $110,000. He said his competition had dropped from about 20 companies to four or five.

A Marsh broker told CBC that slip-and-fall damages run from $500 to over $100,000, and that insurers pay to defend cases even when they get dismissed. He said insurers had been losing money on this class for two decades, and some had stopped offering it. Tony DiGiovanni of Landscape Ontario, which represents about 700 snowplow operators, said rates over $100,000 were common and members were leaving the business every week.

KASE, an Ontario broker, says several insurers have pulled out of this class.

Bill 118: don’t count on it yet

Bill 118 took effect in January 2021. CBC reported that it gives people 60 days to file a slip-and-fall claim, instead of two years. The broker CBC spoke to said insurers would want at least a year of results before deciding whether it changes anything. Budget on today’s prices, not on relief that may come later.

Do you legally need it in Ontario?

KASE says no Ontario law requires a snow contractor to carry general liability. Two things get you there anyway:

• The truck. KASE says commercial auto is legally required to drive a plow truck on an Ontario road.
• The work. Property managers and commercial clients usually ask for $2M or $5M in liability, with them named as additional insured. No certificate, no contract.

Some cities add a licence on top. Vaughan is the clearest example.

Vaughan’s snowplow licence

Vaughan approved licensing for snowplow contractors in November 2022. According to the City of Vaughan:

• The licence costs $502 to start and $221 to renew.
• Members of a City-approved association get 20% off. The first-time fee is lower if you hold an equivalent licence elsewhere.
• You need at least $2 million in commercial general liability.
• Before signing, you give the customer a written list of the by-laws and permits that apply.
• You need a written contract before you take payment.
• A placard with your business name and licence number goes on the dashboard. The licence number also goes on your signs and ads.

The $2M minimum applies to residential operators too. If you push driveways in Vaughan, $1M isn’t enough. Plow in more than one city? Check each one’s licensing page before the first storm.

What to have ready for an Ontario quote

KASE lists what it needs to quote a snow contractor:

1. The services you offer, with revenue split between residential and commercial.
2. A list of every truck and piece of equipment, including blades, spreaders and box plows.
3. Driver abstracts for everyone who drives.
4. Three to five years of loss runs from past insurers.
5. A sample of the contract you sign with clients.

KASE says it can usually bind liability in 24 to 48 hours if that paperwork is ready. That’s their claim, but the point holds: missing paperwork is what slows a quote down. Start in September, not the week of the first squall.

Two more things KASE flags. Your attachments aren’t covered just because they’re bolted to an insured truck, so schedule them. And if you run a landscaping company, your landscaping policy may exclude snow and ice. Check before November.

Driveways vs plazas

Underwriters see a driveway route and a plaza-and-sidewalk book as different risks. But don’t assume the big premiums only hit big commercial outfits. The CBC example above is a driveway business. On r/legaladvicecanada, an Ontario operator who only plows snow (no salt) for long-time lawn customers said his premium went up about 500% with no claims. That’s one person’s post, not data, but it lines up with the news.

If you’re residential now and plan to add one commercial lot, tell your broker before you sign the lot.

Bottom line

Plan on $3,800 a year as the floor for one truck, and expect higher if you do lots, sidewalks or salt. Price that into your seasonal contracts before you sign them. Check every city’s licence rules. Then get a real quote.

We may earn a flat fee if you request a quote. We’re not a broker. Disclosure