How to Manage Risks in the Mining Sector With Specialist Insurance
Posted on February 24, 2020 | by | Posted in Insurance
Whether your company is involved in underground mining or surface mining, you’re probably aware that the mining industry is riddled with risks. From the obvious dangers associated with day-to-day operations to negative ramifications in the environment, these risks have the potential to significantly impact your business. Thus, it’s extremely important that your company is adequately protected with the right mining insurance policy.
Mining insurance helps protect you from losses or damages sustained due to such risks. If your company doesn’t have suitable mining insurance in place, you may struggle to weather the financial repercussions and hamper your bottom line significantly. In this article, we’ll be discussing everything you need to know about mining insurance and how it can help you manage the risks associated with the mining sector.
What is mining insurance?
As the name implies, mining insurance is a form of specialised business insurance that provides all the coverage options you need to insure your mining company against the risks of the industry. It works just like other business insurance policies that include liability, property, and income coverage. Mining insurance provides companies with a variety of coverage options that’s unique to the mining sector.
As such, the coverage options may prove quite complex, which is why we recommend you discuss everything with an independent insurance agent to find out your coverage needs and help you land competitively-priced policies to meet those needs.
The unique insurance needs of the mining industry
One of the major risks that companies deal with in the mining sector has to do with liability lawsuits filed against them. Because of this, mining companies have unique insurance requirements compared to other industries like farming and fishing. There are several different types of liability coverage that a mining insurance policy has to offer and these are:
- Pollution and environmental liability coverage – It’s no secret that mining can cause environmental damage, even when precautionary measures are taken. It can be a messy operation, which is why you should strongly consider pollution and environmental liability coverage. This insurance provides coverage for hazmat cleanups related to sediment ponds, chemical storage tanks, filtration facilities, and other types of pollution. It also provides coverage for legal defense fees.
- Commercial auto liability coverage – Almost all mining companies utilize vehicles to transport workers to and from job sites. They also use vehicles to transport mined materials. This type of insurance will provide liability coverage for your company’s fleet of vehicles ranging from trucks and crew buses to tractor trailers and material carriers
- Foreign and multinational liability coverage – If your company engages in mining operations outside of your own country, this coverage is needed to protect you from liability lawsuits while conducting mining operations on foreign land.
The mining industry requires several types of equipment and machinery during operation. These machines are very expensive, which makes it crucial that these machines are properly covered by your insurance policy. Here are some examples:
- Boiler and machinery coverage – This type of insurance provides coverage for all sorts of machinery used by your company. It provides coverage for things like sprinkler testing and inspections, boiler inspections, replacements, and repairs in the event of equipment breakdown.
- Cargo insurance coverage – This type of insurance is designed to insure materials, ore, and equipment that are being transported from one location to another. This coverage applies for both a hired carrier or your own business-owned vehicles.
There are plenty of other insurance options out there for mining companies and these are just a few examples of what you might need to consider. For example, you’ll need a different type of insurance to protect your company against a mine cave-in. We suggest that you review all of your options with an insurance professional to avoid overlooking important coverages and end up with a coverage that you don’t actually need.
How Matrix Insurance Can Help
If you’re looking for a reliable insurance company to assist you with your insurance needs, look no further than Matrix Insurance. Our team of specialists have the knowledge and expertise in dealing with the complexities of the mining industry to create an insurance solution that fits your needs perfectly.
We understand that each of our clients have different insurance requirements. With this in mind, we carefully analyse your business to identify the risks your company is exposed to and propose an insurance package that will adequately protect you from them. Working in the mining industry is quite challenging, even more so when you’re searching for a reliable mining insurance.
Be prepared to weather any financial repercussions coming your way by contacting us today.
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