“Oh, I suppose I should have told you, shouldn’t I?”
It’s amazing how often we hear this from our clients in the mining business. It’s a shame that it often is only said when a claim is being processed or a policy is being renewed and new information comes to our attention. It’s unfortunate – because by knowing, we could have taken it into account or it might mean that you haven’t been covered or your claim will be denied.
You see, reporting conditions contained in policies are usually buried deep in the policy language. And mining company directors, officers and management often forget (or are simply unaware) of obligations to report certain corporate events or operational changes to their insurance providers.
So what you may have omitted to tell us, or didn’t think we’d need to know, may have cost you. And that omission may have serious consequences. For example, your current coverage may not cover a new exposure. Or a potential claim goes unreported and the delay in reporting could compromise your coverage and result in claim denial. Or your claim could be denied because information that is considered to be a material change in risk wasn’t reported.
But there’s no need to be alarmed. Axis Insurance has a long history and experience in the mining and minerals insurance business. We know that insurance may be lower down your priority list. And that’s OK.
Press Release Monitoring
The first service we offer is the review of your press releases and corporate news. That doesn’t mean we want to be part of your press release approvals process, interfere with your communications team, or correct the grammar of your Chief Executive.
With all our publicly traded mining clients, we register a dedicated email address with Investor Relations. That way all the press releases or corporate news issued are reviewed and passed on to your account executive. If we spot something that has an impact on your insurance coverage, we will alert you right away. We can also alert you to additional coverage you might need if your news makes us aware of certain events.
Market Cap Tracking
In addition to our press release monitoring service, we keep a weekly record of every client’s market capitalization which helps highlight any sudden changes. Significant drops in market cap can sometimes precede litigation, so by monitoring your market cap we are able to stay on top of adverse corporate developments that might result in allegations and consequently the possibility of claim. W
e can help by informing of your obligations as to when and how to notify insurers. We also compare your market cap to historic and 52-week highs and lows. This can sometimes trigger a decision to increase coverage limits – especially where there is a significant rise in market limits.
Interested in more?
Download this PDF for more information.