Snow Removal Contracts and Liability Clauses: What to Read Before Signing

The liability clause in a snow removal contract defines who is responsible when something goes wrong — understanding what you're signing prevents surprises after an incident.

Snow Removal Services

The liability clause in a snow removal contract defines who is responsible when something goes wrong — understanding what you're signing prevents surprises after an incident.

Most professional snow removal contracts include a liability limitation clause that caps the contractor's liability to the value of the contract, regardless of damages incurred. This means a contractor whose service failure contributes to a slip-and-fall may have their liability capped at the annual contract value — often a fraction of the injury claim amount.

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Indemnification clauses require one party to defend and hold harmless the other against claims arising from the contract. In snow removal contracts, these clauses typically require the property owner to indemnify the contractor against claims arising from conditions the property owner was responsible for — while the contractor indemnifies the owner for claims arising from the contractor's negligence.

Force majeure clauses excuse non-performance during extraordinary events — blizzards that exceed the contract's design parameters, extreme weather events, or supply disruptions. Review whether the clause is defined specifically or broadly, and whether the contractor is required to resume service once the force majeure event concludes.

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Service level agreements (SLAs) define exactly what the contractor is required to do and when. A 2-hour response SLA means the contractor must begin service within 2 hours of the trigger being met. An SLA without consequences for breach is essentially unenforceable — a well-written SLA includes credit or rebate provisions for SLA failures.

Insurance requirements: a reputable snow removal contractor provides a certificate of insurance naming you as additional insured on their commercial general liability policy. This protects you in the event of an injury claim that implicates the contractor's operations. Always obtain and retain this certificate before the season begins.

Devon Moore, Operations Lead Co-Founder & Operations Lead — D&D Snow Services

Devon Moore is the co-founder and Operations Lead at D&D Snow Services, providing reliable residential and commercial snow removal across Waterloo Region.