This guide is a short summary of what snow plowing is, who does it, and what is needed to get started.

INTRODUCTION

Many asphalt and concrete contractors (both initial installers and maintenance contractors) spend significant time during the winter months plowing snow for private residences, private business and non-roadway related government agencies and schools.  If you are a contractor you will be probably be familiar with snow plowing.  If you are not, it is Okay.  This guide will give you information and point you to resources that can help you plow or start a snow plowing business.

Snow plowing for State or Regional Roadway Department and Local Cities and Counties is almost always handled internally. 

There is approximately as much parking lot/non-roadway pavement as there is roadway pavement.  That is a lot of pavement.  Chances are that if this pavement is located in a four season climate the owner will be willing to pay somebody to clear it after a snow storm.  That is a huge market.

HOW TO START

PERSONAL PREPARATION

Snow plowing occurs during and after snowfall.  That means at two a.m. or at four o’clock in the afternoon.  Most commercial plowing occurs in the middle of the night because vehicles are occupying the pavement you need to plow during the day.  Regardless you should be prepared to start plowing any time day or night.  You should also have a pretty clear idea of how much snow you can move and how big of an area you can plow before you commit to retainers or fixed pay agreements.  These types of agreements bind you to plowing the snow at a specific location by a certain time (usually start of business the next day).

If snow plowing is a second job for you it will be important for you to assess the flexibility you have with your primary employment and your plowing customers.

INSURANCE

In order to be reputable you will need to carry insurance.  Accidents happen and snow plowing is not an exception.  The very nature of plowing: slick pavement and operators plowing at all hours can and does lead to accidents.

Insurance companies know this.  Snow plowing insurance is therefore hard to find and expensive to buy.  It is, however, worth it and if you do your homework with your agent you can usually reach a mutually satisfactory agreement that spreads the risk fairly between you, the insurance company and the client.

It is not unusual for claims to be made on snow plow insurance policies.  In fact, insurance companies count on it.  The question then becomes how big the claim is and how often claims are made.  It is important to understand that not only large claims but many small claims may affect your premium and even your ability to get insurance.  You will need to carefully weigh whether you submit a claim for a broken concrete curb, dented light pole or dented or scraped car.  In some cases it may be worth it to you to simply pay for the damage repair yourself.

Some suggestions for lessening your premium and keeping in good standing with your insurance carrier include always using written contracts with clients limiting your liability to specific times and to specific and enumerated items.  Also institute a mandatory company policy that you and your drivers will have and maintain a Commercial Drivers License (CDL) and that you will keep your equipment in good repair and keep a maintenance record (especially of brake and tire upkeep).  These things show due diligence in preventing accidents and look good to an insurance carrier.

Use contracts with customers that limit your liability including the times when you will be plowing.  A contract with a specific clause stating that the condition of any vehicles left in the parking lot of the client between 10 pm and 7 am are the client’s responsibility is a good idea.  If you are concerned about where to pile the snow be sure to identify areas in and around the parking area with the client so that they are not surprised or you are not preventing access to a critical area.  See Appendix A for typical plowing and piling patterns and locations.

Be aware of insurance scams.  Some drivers will pull up behind snow plow vehicles and wait until they back up and hit the car.  They then claim damages.  Others will park their already damaged vehicles in parking lots and wait for it to snow.  They will then blame the damage on the snow plow contractor.  The easiest way to avoid this is to contractually limit the damage of parked cars to the owner.  Make it his responsibility to move ALL cars from the lot before plowing can begin and assess a fee for each car left as part of a written agreement.

Other sources of insurance fraud are spurious and frivolous trip and fall claims.  Use dedicated contract language limiting your liability to pedestrian injury as well as visual inspections and thorough and meticulous documentation to avoid these types of claims.  Your insurance agent should be able to help you with this language and even with sample contracts.

BUSINESS LICENSE

You will need to get a business license to start operating.  These can be as simple as starting as a sole proprietor all the way to organizing as a subchapter C Corporation. Some basic options include the following:

• Sole Proprietorship
• Partnership
• Limited Liability Company
• Sub-Chapter S Corporation
• Sub-Chapter C Corporation

There are tradeoffs for each type of organization and different burdens of paperwork and taxes.  Generally speaking corporations provide greater personal protection (protect your home and personal vehicles) from personal injury and accident liability but they are also much more involved.  Speak with a local attorney who is familiar with starting and organizing businesses and the applicable local laws and restrictions.  He should be able to help you decide on the appropriate organization and complete the necessary filing paperwork and identify the required fees.

PREPARING TO BID

Determine your costs

Variable Costs
Fixed Costs

Evaluate the Site

Obstructions
Storage Areas
Location of Dumpsters, Loading Docs, etc.

Types of Bidding

Hourly
Time and Materials
By Area and Depth
Monthly
Seasonal
Retainers

EQUIPMENT

If you are just starting out it is best to start using what you have or simply purchasing only those types of equipment you are sure to need.  Identifying your intended clients and pavement types and layouts are critical.  If you target residential snow removal you will likely need a snow blower and/or small tractor with blade or blower attachment or ATV with blade and spreader.  If you are targeting small commercial properties you will need at least a ¾ to 1 ton 4x4 truck with plow and spreader. 

Be sure to check that any truck, tractor or ATV is rated for the type of plow or spreader you are intending on using.   Be especially aware of your intended truck’s front gross axle weight rating.  Some truck manufacturer’s offer plowing packages that upgrade electronics, suspension and engine systems such that they will work best with a blade and heavier bed loads.  This is crucial. Be sure to get an automatic transmission that will allow you to go as fast in reverse as you go in the forward gears (something you will want for plowing).

Plows

Reversible
V-plow
One-way
Trip edge

Spreaders

Tailgate mounted
V-box inserts
Under tailgate

For more information on snow plowing and starting your own snow plow business see our eBay store at Pavementmanagement