How to start a snow removal business in Canada

Step 1: Insurance, before the first paid job

Decide what you’ll do. Driveways only? Small lots? Sidewalks? Salt? That decides your premium and who’ll hire you. Zensurance’s starting prices for $1 million in liability are $1,800 for shovelling, $2,500 for one truck outside Ontario, and $3,800 in Ontario (Zensurance). Commercial auto for the truck is extra.

Write down your trucks, attachments and equipment values, and the limit you’ll need ($1M, $2M or $5M). Run the estimator for a rough range. Then get a real quote.

Coming from landscaping? Zensurance says your landscaping policy doesn’t automatically cover snow.

Step 2: Register and set up the books

Register your business name or corporation as your province requires. Get a GST/HST number when you need one. Open a business bank account and keep snow money separate from day one. We don’t give tax advice. A bookkeeper can.

Step 3: City licences

Check every city you’ll advertise in. Vaughan charges $502 for a first licence and $221 to renew, and requires at least $2 million in liability (City of Vaughan). Get insured before you apply. Leave a week or more before the first storm.

Step 4: Contracts

• A written agreement: trigger depth, response time, ice included or not, payment terms.
• Route plan, fuel, overtime, and a backup if a truck goes down.
• Photos or a log after every visit.
• Rules for subs if you overflow, and their certificates on file.

Vaughan requires a written contract before you take payment. It’s a good habit everywhere.

Step 5: Price insurance into every job

Liability alone can run thousands a year before the truck. Build it into your per-driveway or per-push price. Operators who don’t are the ones dropping coverage when renewal comes in high.

Equipment

Buy gear you can insure and keep running. A cheap plow that’s broken half the winter costs more than a solid used setup. Track fuel and repairs and keep the invoices. Your insurer and your taxes both need a paper trail.

Advertise what you’re insured for

Don’t post “commercial lots and sidewalks” on Facebook if your application says driveways only. Your ads can end up as evidence in a claim. Keep your website, flyers and insurance file saying the same thing.

Your first year

New operators often pay more because they have no claims history. That’s normal. Zensurance says experience and a clean record both help over time. Use the first season to build one. Keep records, stay inside your scope, and renew early.

Four weeks before first snow

• Week 1: Decide your scope. Draft a one-page service agreement.
• Week 2: List trucks and equipment. Request quotes. Start any city licence applications.
• Week 3: Bind coverage. Set up who handles certificates at your broker.
• Week 4: Price routes with the premium included. Take deposits. Send certificates to your first clients.

Everything gets tight by late October. September is easier.

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

Ottawa, Gatineau and Québec work

If you’re in Ottawa or eastern Ontario and might take work across the river, the quote partner we link to doesn’t cover Québec. Québec work needs a broker who can place it. Don’t assume an Ontario quote covers a Gatineau plaza.