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tremely vital for a snow removal company to have a solid policy, it's not the only protection needed. Setting clear terms in a con- tract and following best plowing practices will also go a long way in protecting a business. Ensure you're insured Owning a snow removal business can be expensive. From pur- chasing necessary equipment to hiring and training new employ- ees to marketing the company, the costs truly add up. But perhaps the most important expense that goes into a business is a solid in- surance policy. Because the snow removal business can be unpredictable, it's crucial for a contracting company to have an insurance policy that's large enough to cover the many claims that may arise. In fact, it's not unusual for the policy to be worth upwards of $3 mil- lion. Although the biggest overhead the company has, liability insur- ance isn't a choice in the snow removal industry. If an injured party files a claim against a contractor who doesn't have insurance, the contractor must pay the entire amount out of his or her own pocket. This could quickly end up costing the contracting com- pany hundreds of thousands of dollars — easily wiping out much of its annual revenue. Consider the following scenarios: A truck driver slips on the ice and injures his or her back. If the injury is severe enough that he or she can't drive truck again, the claim will be enormous. It goes far beyond just paying for the medical costs. The snow re- moval company will also be responsible for paying his or her livelihood expenses. If the driver was making $40,000 a year and still had 20 expected years left on the job, the cost of the claim quickly adds up and will suddenly be worth several hundred thou- sand dollars. Another scenario is the possibility of employee injuries on the property. If one of the client's employees slips and falls, they will likely file for workers' compensation. Workers' compensation pro- vides wage replacement and medical benefits for employees who are injured on the jobsite. In return, the employee must relinquish their right to sue the employer for negligence. This is a key con- sideration for contractors because the insurance company that covers that business's workers' compensation policy will likely seek restitution from the snow removal contractor. Furthermore, when a policy is up for renewal, large claims often come back to haunt the contractor — adding expense to his or her renewal. If the snow removal business has several claims against it, the insurance company will base its new policy off of those claims. Whether they were paid out or not, the insurance company will see them as potential losses. If the contractor has the potential to lose hundreds of thousands of dollars, the cost of their policy will greatly increase. Hands down, the best way a snow removal company can pro- tect itself upfront is having a reasonable insurance policy. But when a slip and fall claim goes to court, and proof of a contractor's specific whereabouts is required, it's wise to arrive prepared. That's the ticket Another kind of "insurance" a snow removal contractor ought to put into practice won't be found through an insurance com- pany. Should the contracting company ever be deposed in a court case, a great way to protect itself is by implementing a job ticket system. Common in snow removal contracting businesses — both big and small — paper job tickets have been widely used to track company and employee information. A job ticketing system pro- vides up-to-date information about the amount of hours spent on each job and who was delegated to which area. Although the idea behind it is good, the execution of a paper system may not hold up in court. Compared to electronic records, paper is not as trustworthy, and its authenticity can easily be ques- tioned. To combat this concern, many snow removal contractors have adopted an electronic job ticket system. If all employees pos- www.landscapeirrigation.com Landscape and Irrigation 19