Mining operations can be complex and involved, and insurance and risk management programs need to be extremely effective to help both reduce the cost of the risk, and satisfy the myriad of regulatory requirements needed these days
For contractors working within the mining industry, ensuring adequate insurance coverage for their businesses and services is an essential consideration.
The types of cover needed depends on the type of work being undertaken.
Contractors essentially providing their own labour only will probably find public liability is the main requirement.
If a contractor is providing advice in a professional capacity, the business might find that professional indemnity is required.
And larger businesses, perhaps with multiple staff and equipment on site, may require a range of other covers.
If you’re looking for a broker who is specialised in all facets of insurance, look no further than Connect Business Insurance, the expert in supplying insurance to the mining industry, while also assisting mining companies to optimise their risk-taking and risk management activities.
The range of mining and civil professions covered by Connect Business Insurance include:
- Civil Contractors
- Drilling Contractors
- Mineral Exploration Contractors
- Mine Site and Camp Construction Contractors
- Surveying Contractors
- Crushing and Screening Contractors
- Quarry and Mining Contractors
- Project Managers and Consultants
Public Liability Insurance
The most commonly required form of miner’s insurance is public liability.
This is triggered in the event that the insured contractor causes property damage or personal injury to a third party.
Indeed, public liability is often mandatory when entering a mine site as a contractor.
But be careful. While many insurers offer public liability, they may exclude any type of mining work.
In fact, most insurance policies, even those through insurance brokers, will have a blanket exclusion for any work on a mine site or related to mining.
So contractors may need a specialist insurance policy that doesn’t cover just mining, but the specific type of work being carried out on the mine sites.
For example, some public liability policies will cover work on mine sites, but not if the work relates to the mining activities.
So electrical work in the accommodation areas may be covered, but electrical work on the mining equipment may not.
It’s important to tell the broker exactly what tasks are being done so the appropriate level of cover can be provided.
Connect Business Insurance’s individually tailored public liability policies comprehensively cover the risk contractors face for anyone injured on site, or any third party damage caused during or at work.
Product Liability Insurance
This type of insurance protects businesses and companies if a product they design, manufacture, or supply harms a consumer.
Product liability cover is highly recommended for businesses in all phases of the supply chain because regardless of their specific role in a product, there is a chance they could face a lawsuit.
While it may seem unfair, those who sell products shoulder some responsibility for the content and performance of the goods.
The Australian Competition and Consumer Commission (ACCC) works to assist with the overall safety of products.
What Can Product and Public Liability Insurance Cover?
All policies are unique to the insured’s needs.
Generally, product and public liability insurance policies will cover:
- Investigation costs
- Settlement fees
- Awarded damages
- Personal injury
- Property damage
- Injuries that occur because of advertising
Generally, what is not covered include:
- Employee claims
- Asbestos related claims
- Cost related to damage of your own product
- Costs associated with fixing substandard workmanship
- Costs incurred while using a registered motor vehicle
Professional Indemnity Insurance
There is always a certain level of risk associated with any mining project, and if that risk is not managed carefully, the effects could be disastrous.
Some mining companies have even made professional indemnity insurance a requirement for all contractors.
Most contracting work is carried out in the mining industry by professionals offering specialised services and advice.
Consultants may provide mining companies with valuable information that is used to plan and successfully carry out all types of mining operations.
However, working as professional consultants comes with a certain level of responsibility. If they were to accidentally make a mistake or withhold relevant information, then they are liable to be sued for negligence.
If found to be at fault, they could be ordered to pay substantial compensation claims to all wronged parties.
Furthermore, even if not at fault, consultants may be required to pay significant legal fees to defend their reputation.
Without professional indemnity insurance, consultants – if charged – would be required to cover all of these costs from their own pocket, which could lead to not just loss of the business, but potentially the home and other personal assets.
A typical professional indemnity insurance policy will cover any monetary loss that results from the actions, omissions or mistakes of the insured party.
This could include an employee who acts dishonestly without the employer’s knowledge, the accidental release of sensitive information, unintentional violations of a third party’s intellectual property, or acting without due care while providing a paid service.
Before taking out a professional indemnity insurance policy, it’s useful to consider the following three important points:
The amount of cover: this will vary depending on the size of the business, along with several other key factors. To ensure sufficient protection, it’s a good idea to talk to an insurance expert with plenty of experience in the mining industry.
The size of the project: when considering insurance, it’s best to consider worst-case scenarios. So, think about the largest project and make sure the insurance is substantial enough to cover negligence claims arising from that project.
The impact of inflation: if ordered to make compensation for financial loss, then the amount will typically be adjusted to account for inflation. For example, a loss valued at only $50,000 10 years ago would have much more added to it currently when the average rate of inflation is factored in.
Connect Business Insurance offers a range of policies which cover all scenarios and requirements of mine sites.
Plant and Equipment Insurance
Contractors bringing their own plant and equipment onto the mine site will need to have adequate insurance in place to protect it.
Whether it’s an electrical contractor bringing a couple of grand worth of power tools or a larger contractor with hundreds of thousands of dollars’ worth of equipment, there will be a policy to suit.
In some cases the insurer won’t be concerned about whether or not the equipment is being used on a mining site, but it’s definitely worth letting them know to be safe.
When it comes to plant and equipment, Connect Business Insurance can find the right cover quickly, easily, and at the most affordable price.
The company’s team are experts in the areas of material damage and road risk, as well as public liability and business interruption.
They also offer a diverse range of services, including standalone items and large mobile machinery and equipment fleets.
The tailored insurance packages are flexible, covering everything from a one owner-operated plant to a large plant fleet.
Protection is offered in many areas, including accessories and tools; the removal and recovery of plan (damaged or not); and disposing of rubble and debris.
Motor Vehicle Insurance
People interested in finding work on a mine site should ensure they have adequate motor vehicle insurance.
Vehicles often play an essential role in contractors’ ability to run a business at the mines.
But many standard motor vehicle insurance policies contain exclusions relating to work carried out on a mining site.
Reading the fine print is important – being fully aware of the exclusions and limitations attached to a policy could save money in the event that the motor vehicle is damaged, or accidentally causes damage, while on a mine site.
Insufficient cover could lead to the loss of vehicles, and potentially, whole livelihoods.
Income Protection Insurance
Income protection isn’t a form of business insurance, but it is still critically important for a mining contractor.
Contractors or sub-contractors generally won’t be covered by sick leave or workers compensation insurance.
Income protection insurance can cover a large percentage of income for a period of time if the contractor is unable to work due to injury or illness.
Income protection can be a little more expensive for anyone working on a mine site, especially if working underground, because it reflects the increased risk of injury on such sites.
Connect Business Insurance has the expertise needed to determine all insurance needs as well as the experience to get the needs met.
The company combines excellent customer service with expert local underwriting, and all claims are handled fairly and fast.
Connect Business Insurance is people-focused and motivated by a genuine concern for both employees and policyholders.
The business makes sure cover is sufficient to meet the unforeseen events that occur at businesses and work sites.
Because Connect Business Insurance associates understand the ins and outs of the insurance industry, they can also suggest different types of insurance cover businesses may not know they need.
Its mission is to provide financial protection and peace of mind for its customers, offering a quality approach by helping clients manage their risks, and leaving them more time to focus on their business.
Contact Paul Cohalan at Connect Business Insurance on:
Phone: 1300 477 662