You put a plow on your ATV. You plowed your driveway. Then the neighbor offered you $50 to do theirs. Then you posted on Facebook: “Plowing driveways, $50.” You backed into a parked BMW while plowing. The claim is denied for “Commercial Use.”
Key Takeaways
- Commercial Use Exclusion: Personal ATV policies exclude any activity where you accept money for services.
- “Holding Out for Hire”: Even if you didn’t get paid yet, posting an ad on Facebook proves you were operating a business.
- The Damage: Hitting a luxury car with a steel plow causes massive damage. You are personally liable.
- Commercial Policies Exist: You can buy a commercial General Liability policy for plowing, but it costs
500−500−1,000/year.
The “Why” (The Trap): Business Risk
Personal insurance covers hobbies. Business insurance covers work. Plowing for money is work. The risk of hitting cars/mailboxes/sprinkler heads is exponentially higher when you are rushing to finish 10 driveways.
The Clause:
“Coverage does not apply while the insured vehicle is used to carry persons or property for a fee, or used for any business or commercial purpose.”
The Investigation: The “Neighbor” Exception
I asked an agent about the grey area.
- Scenario A: I plow my grandma’s drive for free. Covered.
- Scenario B: I plow my neighbor’s drive, and he gives me a 6-pack of beer. Likely Covered (Hard to prove business).
- Scenario C: Venmo transaction for “Plowing” or Facebook Ad. DENIED.
Comparison Table: Plowing Risks
| Activity | Policy Type Needed | Cost |
| Personal Driveway | Personal ATV Policy | Standard |
| Neighbor (Free) | Personal ATV Policy | Standard |
| Side Hustle (Paid) | Commercial General Liability | High ($1k+) |
[IMAGE: Photo of an ATV with a plow blade resting against a dented car bumper]
Step-by-Step Action Plan
- Don’t Advertise: If you want to stay covered by personal insurance, do not post ads.
- Don’t Take Cash: Help neighbors for free or for barter. Once cash/Venmo is involved, it’s a business.
- Be Careful Backing Up: 90% of plow accidents happen in reverse.
- Get Commercial Insurance: If you want to make a business out of it, buy the right policy. It covers the plowing liability (hitting the car) and usually Completed Operations (slip and fall on ice).
FAQ
Does my plow attachment need separate insurance?
It is usually covered as “Custom Parts & Equipment” (CPE) attached to the ATV. Ensure your CPE limit is high enough to cover the $800 plow.