By Randy Strait
Some of the best things in life involve ice. The icing on a cake is many times the favored part of the dessert. Ice can also mean a striking, expensive piece of jewelry. But take the positive connotations out of the word and ice quickly becomes a very serious matter. Winter can be a dangerous season, and not just because of the inevitably risky driving conditions. Every year, thousands of people are hurt when they slip and fall on the ice. Quick to follow those injuries are expensive liability lawsuits. More often than not, the snow removal contractor will be the party left holding the bag.
More and more people are seeking outrageous amounts of financial gain after a fall and will fight whomever in order to collect. As a snow removal contractor, it’s important to do whatever it takes to protect the company and its clients from these potentially massive monetary losses.
Ensure You’re Insured
Owning a snow removal business can be expensive. Between purchasing equipment, hiring and training employees and marketing the company, the costs add up. But perhaps the most important expense that goes into a business is a solid insurance policy. Because the snow removal business can be unpredictable, it’s crucial for a contracting company to have an insurance policy that’s large enough to cover the claims that may arise. It’s not unusual for the policy to be worth upward of $3 million.
Although it may be company’s biggest overhead expense, liability insurance isn’t a choice or a luxury in the snow removal industry. If an injured party files a claim against a contractor that doesn’t have insurance, the contractor must pay the entire amount out of pocket. This could cost hundreds of thousands of dollars – easily wiping out much of a company’s annual revenue. Consider the following scenarios:
- A truck driver slips on the ice and injures his back. If the injury is severe enough that he can’t drive a truck again, the claim will be enormous. It goes far beyond paying for medical costs. The snow removal company will also be responsible for paying his livelihood expenses. If the driver was making $40,000 a year and still had 20 expected years left on the job, the cost of the claim will suddenly be worth several hundred thousand dollars.
- An employee is injured on the property and files for workers’ compensation. Workers’ compensation is a form of insurance that provides wage replacement and medical benefits for employees who are injured on the jobsite. In return, the employee must relinquish their right to sue the employer for negligence. This is a key consideration for contractors because the insurance company that covers the workers’ compensation policy will likely seek restitution from the snow removal contractor.
When a policy is up for renewal, large claims will come back to haunt the contractor. Whether or not claims were paid, the insurance company will see them as potential losses. If the business has several claims against it, the insurance company will base its new policy off of those claims and their policy costs will greatly increase—if they can get insured at all.
That’s the Ticket
Another kind of “insurance” a snow removal contractor ought to put into practice won’t be found through an insurance company. Should the contracting company ever be deposed in a court case, a great way to protect itself is by implementing a job ticket system.
Common in snow removal contracting businesses – both big and small – paper job tickets have been widely used to track company and employee information. A job ticketing system provides up-to-date information on amount of hours spent on each job and who was delegated to which area.
While the idea behind it is good, the execution of a paper system may not hold up in court. Compared with electronic records, paper is not as trustworthy, and its authenticity can easily be questioned. To combat this concern, snow removal contractors have adopted an electronic job ticket system. If employees possess GPS phones, their activity can instantly and easily be tracked and recorded. Information on when the crew was dispatched, what time the job was started and how long it took to complete will be crucial in court, even several years down the road.
Sign On The Dotted Line
No snow and ice management professional should ever service a site without a signed contract. The ability to set up specific criteria beforehand is wise if liability issues are pertinent to the business.
When starting a relationship with a new client, many will draw up a non-contributory contract. This means the store or client will not contribute to or be a part of a liability claim – it is the sole responsibility of the snow removal contractor. If a customer or employee is injured, the contractor—not the client—takes the blame.
In addition to placing all liability on the contractor, this agreement states a client cannot instruct a contractor on how to service the property. He or she cannot say where to put the snow, how much salt to use, when to hold off service, and so on. If instructions are given to the snow removal contractor, the client assumes all responsibility for any potential slip and fall claims. Since the he-said she-said game can get quite messy if the issue is brought to court, it’s best to avoid client instructions altogether. You are the snow & ice expert—you should be dictating the plan, not the other way around.
A significant consideration to discuss with the client beforehand and to include in the contract is how much of the property to plow. Some clients will request just the lot be serviced while others expect sidewalks and walkways to be cleared as well. Be sure these parameters are clear so misunderstandings can be avoided.
Most slips and falls occur on high traffic areas, like sidewalks and walkways, so clearing them in a timely fashion and applying the appropriate material to melt the ice—especially in subzero temps—should be a top priority.
A contract should clearly state all areas the contractor is expected to plow, such as sidewalks and walkways.
To Salt Or Not To Salt
In many icy situations, salt may be the answer to preventing slip and fall claims. But it’s important to also understand the possible drawbacks that come with relying too heavily on salt.
In many cases, low temperatures may prevent salt from doing its job. It’s most effective when the temperature is 20° F and above, and will work best when the sun is out to activate it. Because of these specific required conditions, salt may not be the best choice for every situation.
Another factor to consider is the possibility of a salt shortage. In areas with bad winters and numerous snowstorms, the demand for salt is high, and it’s not uncommon for the supplies to quickly deplete. More than likely, any salt that eventually comes in will go to municipalities and then the large snow removal companies, leaving smaller contractors in a pinch.
Best Plow Practices
Whether the operator is just starting out in the business or is a veteran who knows his or her way around a plow, there are always new techniques and methods to learn. By following some best plowing practices, the threat of potential liability claims will greatly decrease.
The first essential consideration when clearing a lot is to be mindful of how the snow is cleared. Make sure snow is pushed to areas where it won’t leach back. If it’s thoughtlessly piled in random areas or pushed onto islands, it may melt during the day, run off onto the pavement and freeze at night. If this happens in a higher foot traffic area, there’s a much greater chance for someone to fall. Again, be sure to reference the contract set by the client. If a non-contributory contract was drawn up, it will be that much more important to put extra thought into the plowing method, since any accident makes the contractor liable.
Pile snow in areas where it won’t leach back, melt and refreeze – this greatly reduces the chance for serious accidents and injuries.
Additionally, arriving at the client’s store or business several hours before it opens for the day will go a long way in preventing a slip and fall later in the day. If the job is not complete when the first customer arrives, the contractor has lost the opportunity to clear that area of snow.
Finally, the job doesn’t end after the snow has been cleared. A good contractor will make the effort to follow up at each place of business. In between plowing jobs, it’s important to go back to check up on the client’s property, especially if the temperature has dropped significantly. Even if it’s not currently snowing, be sure to check for things like black ice and areas that have frozen over, and tend to them if necessary.
Slip and fall claims are increasing more and more each year, making it absolutely crucial to take all the necessary steps to protect a snow removal business from liability claims and lawsuits. With so many lots to plow and customers to serve during the winter months, it may seem like an uphill battle. But taking a proactive approach to prevent liability issues will greatly decrease the likelihood of financial loss.
Randy Strait is president of Arctic Snow and Ice Control Products, a reputable snow and ice management contracting service. With more than 30 years experience in the industry, Strait developed the revolutionary Sectional Sno-Pusher. Today, the Sectional Sno-Pushers are available in a variety of lengths, and designed for compact, light, and heavy-duty equipment. Photos courtesy of Randy Strait, Arctic Snow and Ice Control Products / Sectional Sno-Pusher.
