Placing insurance for Snow Removal Contractors is becoming more difficult as more and more insurance companies are pulling out of the market. With winter right around the corner in Northeast Ohio what does that mean as you prepare for the season?
Your insurance premium may be going up this year. A major cause for the increase can be attributed to slip and fall claims that have increased in frequency. In addition, medical costs have increased, raising the severity side of the equation. Insurance 101 is increase in frequency + increase in severity = increase in premium!
Other issues that are causing premiums to increase are late reporting. Just last week I received a call from one of our insureds that he was just being notified by the operator of a Cleveland parking lot of a slip and fall accident on February 19, 2019, almost eight months after the alleged incident. This late reporting makes it difficult to defend a third-party claim.
Our agency insures more than 125 churches in Northeast Ohio and it seemed like last year it snowed every Sunday morning before service. As contractors were trying to clear lots church members were arriving, making snow removal more difficult. As church goers were navigating the conditions it seemed inevitable there was going to be a slip and fall accident. With Medicare being the secondary payor for medical services (for more information see the Medicare Secondary Payer Act) caused by these accidents the cost has been shifted back to the snow removal contractor’s insurance, increasing losses.
Even larger increases may be seen for snow removal contractors who provide services to 24-hour business, banks with walk up ATMs, hospitals and assisted living facilities. Before you renew your policy or decide to enter this business, contact your Trusted Choice Agents at Richey-Barrett Insurance to ensure you have a comprehensive insurance program constructed to meet your specific needs.