Insurance Questions to Ask a Snow Removal Contractor in Montana

What insurance should a snow removal contractor carry?

Three things are worth asking about for nearly every contractor: general liability, commercial auto, and workers' compensation or Montana's exemption from it. General liability is the coverage to ask about for property damage and injuries that come from the work. Auto liability matters because the main tool is a truck. Workers' compensation is what pays for a worker's on-the-job injuries, and Montana has specific rules on it, which we cover below.

A certificate of insurance can show those coverages. TrustLayer's guide to reading one lists general liability, auto liability and workers' compensation among the common coverage types. Choosing the right limits depends on your property and exposure, so ask your own agent what would be sensible for a home, a rental, a business or an HOA. This guide is part of our Montana Winter Property Guide. For how we run our own accounts, see snow and 24-hour storm services.

What does a certificate of insurance actually prove?

It proves less than people assume. Nav's guide calls a certificate of insurance a snapshot, not a policy: the policy and any endorsements determine what is actually covered. TrustLayer similarly describes it as a summary that does not give the full details of the policy. It is issued by the insurer or an agent, and it is useful as evidence that coverage existed on the day it was issued.

Nav lists what you should see on one: the insured business, the insurers, the coverage types, policy numbers, effective and expiration dates, coverage limits, the certificate holder, cancellation language and an authorized representative's signature. Liability certificates usually follow the ACORD 25 format, it says. Ask for a certificate sent directly from the agent, rather than a photo of an old one.

How do you check a certificate is real and current?

Run through a short list. Does the insured name match the legal name of the company on your contract? TrustLayer warns that mismatches can cause trouble when filing a claim. Do the policy dates cover the whole season, including storms in April? A policy that expires in January is worth a follow-up. Do the coverage types match what you asked for?

Nav also suggests confirming the agent or broker using a phone number you found independently, checking that the document shows no signs of editing, and requesting endorsements when your contract requires them. It takes one phone call. While you are on the line, ask whether anything about the policy limits or excludes snow plowing and ice work, because that is the question a generic certificate will not answer.

What is the difference between a certificate holder and an additional insured?

This is the distinction commercial owners and HOAs should get right. Nav explains that a certificate holder only receives the certificate and gains no rights under the policy, while an additional insured is added through an endorsement and can be protected for covered claims related to the contractor's work. Being listed as a certificate holder does not make you an additional insured, and a mention of additional-insured status on the certificate is not enough without the endorsement.

For most homeowners, being named on a certificate may be all you ask for. For a property manager, HOA or commercial owner, ask your agent or attorney whether you should require additional insured status and, as TrustLayer explains, whether a waiver of subrogation is relevant. That clause stops an insurer from pursuing a third party for reimbursement after paying a claim. If a contract requires any of this, ask for the endorsements themselves. Our snow and ice contract checklist and contract terms guide explain where these items fit in the agreement.

Does a Montana snow contractor need workers' compensation?

Generally, if the company has workers, yes. The Montana Department of Labor & Industry says the state's Workers' Compensation Act, with limited exceptions, requires employers to cover full-time, part-time, seasonal and occasional workers. Seasonal is the word to notice in a business that hires extra help for winter storms. The department also says that general liability and health and accident insurance are not substitutes for a workers' compensation policy.

So do not accept a liability certificate as an answer to a workers' comp question. Ask to see proof of the workers' compensation policy if the company has a crew. Uninsured employers can face serious consequences of their own: the department says they may be assessed double the premium they would have paid, and they are liable for the injured worker's medical and wage-loss benefits.

What is an ICEC, and what does it mean if a plow operator has one?

An Independent Contractor Exemption Certificate is Montana's way for a qualifying independent contractor to opt out of workers' compensation coverage for themselves. In its FAQ, the department says the certificate allows an independent contractor to waive the rights and benefits a workers' compensation policy would otherwise provide. If that person is hurt doing the occupations on the certificate, they are not eligible for workers' compensation benefits. The alternative is self-elected workers' compensation coverage, which provides wage-loss and medical benefits.

It is not a measure of skill. The department says no test is required to qualify. It also lists the kinds of "person" who may need one (for example a sole proprietor or a working member of a member-managed LLC), and transferring a certificate to another person is prohibited. So a certificate held by the owner does not automatically cover the helper on the back of the truck. Ask who is actually coming, and what their status is.

What is the risk to you if the contractor has neither?

The department spells this out in its FAQ. Hiring an independent contractor who has neither an ICEC nor self-elected coverage could result in the state treating that person as an employee of the hiring agent. The hiring agent may then be responsible for claims for work-related injuries and may incur penalties from the Uninsured Employers' Fund. Labor agreements and issuing 1099s do not make a person an independent contractor.

How that applies to a homeowner paying a neighbor to plow, as opposed to a business hiring a subcontractor, is a question for an attorney or the department, and we would not guess. The practical answer is the same either way: ask for the paper before the first storm.

How do you verify an ICEC or workers' comp coverage in Montana?

Use the state's tools rather than a photocopy. The department's ICEC program page has a license lookup, and you can reach the program at (406) 444-7734 or DLIERDICCR@MT.GOV. To verify self-elected coverage, the FAQ says to request proof of coverage from the contractor or call their workers' compensation insurance agency. Do the same for a company policy, and check that the dates cover the season.

Who is liable if someone slips on my property after service?

That is a legal question, and the answer depends on the facts, the contract and the law. Insurance and liability are not the same thing: a contractor's policy may respond to a claim about its own work, but hiring a contractor does not automatically mean you have handed off your own responsibility as an owner. For example, City of Missoula rules hold property owners responsible for sidewalks next to their property, and the city's page does not mention an exception for having hired someone, as we explain in Missoula sidewalk snow removal rules.

Our overview of slip-and-fall liability for Montana property owners is general background. If your contract has hold-harmless or indemnity language, read it closely and have an attorney look at it. A clause that sounds routine can move risk a long way in one direction. Good service logs and documentation also matter if a claim ever comes up.

Should I call my own insurance agent too?

Yes, particularly for a rental, a vacant home or a commercial property. Ask how your policy treats injuries on the property and damage caused by a contractor, and whether your agent wants anything specific from your snow contractor. An owner of a second home or empty property should also ask what the policy expects during long absences. The Montana commissioner's post-storm advice, reported by KPAX, was to talk to your insurance agent before signing an agreement with a contractor after a loss, and it makes sense to do so before you have one.

What should you do if a plow damages something?

Document it first: take photos, note the date and time, and report it to the contractor promptly in writing. Do not wait until spring if you can see the damage now. Then check your agreement for reporting deadlines. Some damage is invisible under snow, and that is why we suggest doing a walkaround at both ends of the season. Our guide to preventing plow damage covers how to keep it from happening, and yard cleanup after the snow melts covers what to look for at the end.

Will a contractor be offended if I ask?

A contractor that carries the coverage should not be. It is a routine request for anyone doing commercial work, and it takes a phone call to the agent. HJ Property Care & Tree Service is licensed and insured, and we expect to be asked. When you are comparing companies, use the rest of our guide on how to choose a snow removal company, and call (406) 215-7319 or contact us to talk through residential, commercial or HOA service.

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