What insurance should a snow plow contractor carry in Michigan?

The coverage that matters

General liability. This covers bodily injury and property damage the contractor causes to other people: a blade that takes out a fence, a pile that crushes a shrub bed, a guest who slips because of how the work was done. It is the baseline policy, and any legitimate contractor has one.

Commercial auto. Plow trucks are working vehicles. A personal auto policy may exclude driving for business or plowing for pay, which matters if a truck hits your garage door or a parked car. Ask whether the trucks are on a commercial policy.

Workers compensation. Snow work injures people: slips on ice, strains from shoveling steps, injuries around equipment. Workers comp covers the contractor's employees when they are hurt on the job. Michigan requires it for private employers who regularly employ three or more people at one time, or at least one person working 35 hours or more a week for 13 weeks or longer in the preceding 52 weeks.

Why it matters to you

If an uninsured worker is injured on your property, they or their own insurers may look for someone else to cover the cost, and your homeowner policy can end up in the conversation. If an uninsured contractor damages your property, your only recourse may be a small-claims case against someone with no assets. Insurance moves those problems off you and onto a policy built for them.

For commercial property owners, the stakes are higher. Since the Michigan Supreme Court's 2023 decision in Kandil-Elsayed v F & E Oil, the "open and obvious" doctrine no longer automatically defeats a slip-and-fall claim, so more of those cases reach a jury. Your contractor's coverage, and your status on their policy, are part of your defense. See our guide to snow, ice and liability in Michigan.

How to read a certificate of insurance

A certificate of insurance (often called a COI) is a one-page summary of a contractor's policies. Check four things:

1. The insured name matches the business you are hiring, not a relative's company or a former business name.
2. The policy dates cover the whole season, typically November through April.
3. The limits are listed for general liability, auto and workers compensation.
4. The certificate holder is you, or your business, if you asked for that.

Commercial properties should ask to be named as additional insured on the contractor's general liability policy. That gives the property direct standing under the contractor's policy for claims arising from the contractor's work, which is standard in commercial snow contracts.

What limits are reasonable?

For homes, general liability of $1,000,000 per occurrence is common for established contractors. Commercial property managers often require higher limits and additional insured status, and many set a minimum in their bid documents. Whatever the number, it should be on the certificate before the first storm.

Is a license required?

Michigan has no statewide license for snow plowing. A few municipalities license snow contractors locally (East Grand Rapids is one example), so check your city. In practice, "licensed" on a snow truck rarely refers to anything you can verify. A current certificate of insurance is something you can verify with one phone call to the agent listed on it.

Our coverage

We carry $2,000,000 in general liability and $1,000,000 in workers compensation, and we send a certificate before work starts. Commercial clients with additional insured requirements should tell us up front so we can confirm what their bid documents need.