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Snow Insurance

Discussion in 'Introduce Yourself to the Community' started by Snow Solutions, Dec 11, 2014.

  1. Snow Solutions

    Snow Solutions Junior Member
    Messages: 7

    I am interested in information related to Snow Insurance, Cost Containment / Income Stabilization.
    Any input would be appreciated, thank you
  2. Dogplow Dodge

    Dogplow Dodge PlowSite Veteran
    from NJ
    Messages: 3,699

    What does your local insurance professional tell you ?

    Curious to see how it compares to NJ's Rates (or should I say "rapes")

  3. Tom c.

    Tom c. Member
    Messages: 36

    Mine has gone up every year!! It started out at about 800.00 a season then went to 1200.00 in 1 yr. I think it was like 1500. They want it up front and they don't care if it snows or not!! And then people wanna know why you need to get 40-50 for driveways. I had one customer call me last year and said she had a kid with a snow blower outside and wanted to know much I was gonna charge her!!! WTF told her I hope the kid has a mower too
  4. heavyDully

    heavyDully Member
    Messages: 66

    I'm in indiana. I'm at 1870.00 that's without W/C. Add another 2300.00 oh and that's payment up front... yay!!
  5. 90plow

    90plow Senior Member
    Messages: 739

    I could be wrong but I think he's asking about literally snow insurance which is not liability or auto insurance. It's meant to cover you if it doesn't snow. It's kind of a gamble for instance you pay $1,000 up front and if it doesn't snow x amount of inches this season you get paid out $3,000 to cover your expenses. If it does snow x amount the insurance company does not pay out.
    Like I said I believe that's what OP is talking about.
  6. Dogplow Dodge

    Dogplow Dodge PlowSite Veteran
    from NJ
    Messages: 3,699

    I've heard of that type of policy, but know NO-One who actually had it, or has it. It's like the Yetti. Lots of talk about it, but there's not a soul alive who can prove it exists, other than some fake giant footprints in the mud.:D
  7. fairrpe86

    fairrpe86 Senior Member
    Messages: 175

    The way we do snow insurance is essentially a seasonal flat rate contract. We charge them X amount for the season and if it snows a lot we might not make money on it, but if it doesn't snow much that season, we make money on it. The customer has a set price for the season and they can budget easier. Those contracts all have blizzard clauses that if we get 12+ inches in 24 hours they go to hourly.
  8. mnsnowfighter

    mnsnowfighter Junior Member
    Messages: 29

    I just bought it this year after toying with the idea for 4 years. Cannot afford a down year like 2009.
  9. John_DeereGreen

    John_DeereGreen 2000 Club Member
    Messages: 2,919

    That's what I was thinking too.

    I'd really like to know more about it as well, heard of it but never heard of anyone with it.

    mnsnowfighter, care to share any further info on your policy?
  10. plowguy43

    plowguy43 PlowSite Fanatic
    Messages: 5,281

    Just wanted to tell you - if it continues to go up and you've been with your current carrier for a few years, its time for you to shop your policy. Many small business owners don't realize that there are savings to be had by shopping the policy every few years.

    For example - myself - I'd been with the same carrier since 2007, rates didn't go up much at all over the years but when I started with my current agency, I decided to shop it out and see what I could do. I ended up saving $1,000 on my policies and increased my coverage at the same time.

    Sorry OP!
  11. Snoviper

    Snoviper Senior Member
    Messages: 121

    I have seen something similar where event coordinators/promoters get weather related insurance for concerts or other outdoor events and if they have to cancel they can recover some of the costs.
  12. Snow Solutions

    Snow Solutions Junior Member
    Messages: 7

    Yes, that is what I am referring to in regards to insurance. Any input would be great, thanks.
  13. mnsnowfighter

    mnsnowfighter Junior Member
    Messages: 29

    I will give you a quick run down.

    They sell 2 types of insurance. hedging on lack of snow or the over abundance of snow. You have to decide what one you want to buy into based on what contracts you have. All yearly, per push, hourly etc. You need to know how much it costs you to plow each 1" of snow. The insurance company then will give you usually a few options in limits that you can purchase. Obviously the closer to you yearly average the more expensive and the further away(less risk) will be lower premiums. The policies pay out at the end of the year and by the inch over or under the designated amount of snow. There is a cap on the payout as well. I myself had snow totals for the last 5 years and we buy on the lack of snow.