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Insurance hikes hit snow removal industry, Hat company closes

Oct 14, 2021 | 5:55 PM

MEDICINE HAT, AB – Insurance costs are rising for the snow removal industry in Alberta, to the point one Medicine Hat company was crushed under its weight.

“We closed up shop.. we lived and breathed snow removal. We were one of the larger contractors in the city,” Chris Steinley told CHAT News.

Steinley operated Prostein Property Maintenance for 10 years, clearing parking lots for some major stores in Medicine Hat including Walmart.

But he says his operation was forced to close by a sudden spike in insurance premiums: from $4,000 a year to $21,000 a year last winter.

“This is our livelihood and we’re, y’know, trying to figure out how to make a living, and an increase like that is just impossible,” Steinley said.

The Insurance Bureau of Canada says there is an industry-wide surge in premiums for snow removal, following an increase in commercial liability claims paid out last year: about $5 billion, which was double the cost from 2013 of $2.4 billion. Many of the claims involved slip and fall accidents.

“We’ve seen a 108 per cent increase across the country of these type of (commercial liability) claims,” the insurance bureau’s Rob Dupris said, and added the snow removal industry can take measures to reduce premiums.

“Make sure they are documenting all the work that they do. make sure they also have standardized contracts,” Dupris said.

But Steinley says he’s had only one claim in his ten years of operating after a person slipped right as a storm got underway, and says he was diligent with his paperwork. He’s calling for regulated change to the insurance industry.

“Those kinds of increases don’t work in any other industry for anything ever.. and it puzzles me because.. you go from a customer of 10 years to just not a customer anymore,” Steinley said.

He’s now working as a salesman in Dunmore. But Steinley worries the snow removal industry could find its financial future much more stormy thanks to rising insurance premiums.