For local governments in cold, snowy regions, snow removal is an important public service. However, it differs in some ways from other public works. The cost of snow removal fluctuates greatly each year, since it is influenced by snowfall. Therefore, local governments have been forced to make a supplementary snow removal budget each year. In addition, introduction of PFI to public works has been considered in Japan in recent years. If PFI is to be introduced to snow removal, we must consider risk-sharing, because the degree of cost fluctuation relates to an investor's risk. Because snow removal costs fluctuate greatly, application of PFI to snow removal presents particularly daunting challenges. In Sapporo, the average of snowfall is about 480cm. Heavy years see 600 cm of snowfall and light years see 300. Fluctuation is very great. Snow removal in Sapporo has made progress since the 1972 Sapporo Winter Olympics. Its cost also has increased with increasing road extension and number of cars. It has been about 10 billion yen / year, recently. This study proposes snow removal insurance to hedge the risk of snow removal cost fluctuation, toward enabling PFI's application to snow removal. The case of Sapporo is considered. We analyze the relationship between snow removal cost and snowfall volume, and we show how the introduction of insurance levels the snow removal cost. In the case study, the largest fluctuation before the insurance was introduced was 6 billion and the insurance reduced this to 4 billion yen, a 33.3 per cent decrease.