It’s an unfortunate fact of life in the exploration business: however safe and well managed your operation is, insurance companies usually consider the mining industry to be hazardous and risky. They tend to think of the potential for large catastrophic losses and serious injury that can give rise to big liability claims – and therefore believe the industry is difficult to underwrite and shy away from it. Unfortunately, this misconception of exploration and mining has led to a restriction of the number of insurers that underwrite mining risks and made it into a specialty class of business – with the consequence that the lack of competition has driven up pricing.
Even though your business may be operated and managed well, there are risks – not only from contractors working with unfamiliar heavy equipment or the failure to explain all the potential hazards at the site to workers. There are also risks associated with pressure for increased production, or different safety standards between you and your contractor – along with the use of explosives, mobile equipment, skidoos and ATVs.
What’s more you can still be liable even on inactive projects. For example, there’s a famous case where a hiker went on to a property which was not even being worked on. The hiker explored a mine and fell through a shaft sustaining serious injury. This led to a multi-million dollar award in the US – even though the property was not an active exploration project.
However, thanks to Axis Insurance Group’s long history of working with mining and mineral exploration companies we understand the mining business intimately and how our clients operate. We are therefore much better equipped than most brokers to present the risks you face to a market that generally misunderstands the business.
Mining & Mineral Exploration Liability Insurance coverage from Axis has many benefits:
- Protection against pollution spills and losses.
- Skidoos and ATV’s automatically covered even if they are licensed.
- Watercraft coverage up to 100 tons gross registry. Most policies limit coverage to vessels that are only a few feet in length.
- Advertising liability (including website) automatically included.
- Coverage provided for Forest Fire Fighting Expenses. This is only covered if added by endorsement and most insurers cannot provide this coverage.
- No need to buy separate non-owned aviation insurance. Standard General Liability policies contain very broad aviation exclusions. Most brokers recommend the purchase of specialty coverage under a Non-Owned Aircraft policy. The problem is that these policies have severe limitations and can be expensive and usually do not apply to risks located outside of North America.
- Occurrence limit – no general aggregate limit.
- Large limits available.
- Coverage applies anywhere in the world.
- No exclusions relating to sub-contractors property or personnel.
- Employers’ liability coverage is available when needed.
Interested in more?
Download this PDF for more information.