While it is unfortunately true that the coronavirus brought significant losses across a wide range of businesses and industries, the mining industry in Western Australia is recording immense growth despite the pandemic.
The Western Australia Mines and Petroleum Minister, Bill Johnson feels the growth is indicative of how important the resources sector is in Australia. Johnson states:
“It is particularly pleasing to see strong growth in exploration expenditure, which has been achieved despite the difficulties caused by the global pandemic.”
WA had a record $22 billion increase in mineral and petroleum sales thus far in 2020. Additionally, iron ore sales reached a record $103 billion in sales. In addition to this increase, exploration spending increased by 19 billion dollars for 2019-2020.
The growth of the mining industry brings along an increasing number of risks as well as a rising need for insurance cover. When searching for the appropriate cover for the mining industry, choosing the right insurer for your company is one of the keys to the peace of mind that you get knowing you and your business are safe.
Why Should I Consider Mining Insurance?
If you break down all of the components of a mining site, it is easy to see how many parts are at work. With each piece of the operation, there is an increased probability of a mishap. Operating a mining site without knowing for sure that you have the right mining insurance, as well as the right amount of insurance, is critical.
When you think about how much there is to lose, having correct levels of quality insurance is not a debatable point.
Will the Same Cover Take Care of All Facets of My Mining Site?
Unfortunately, because of the large number of separate parts that create a mining facility, it is common to need various kinds of insurance cover at a single mining site.
Some examples of parts in need of different insurance cover or partially unique types of insurance include:
- Mining above the ground
- Underground mining
- Cover for contractors
- Insurance for subbies
- Specific insurance for different roles. For example, if an electrician is wiring the buildings that make up the mining camp, you will need alternative cover than if an electrician is wiring in an underground mine shaft.
Additionally, there may be instances where there is a divergence in who is responsible for getting different varieties of insurance.
The list is by no means exhaustive. Consult with an insurance expert to discuss the needs of your mining site.
If There Are Different Specific Types of Cover, Which Do I Need?
Since your situation and needs are unique, it is essential to meet with a professional in the insurance industry. As you may be aware, having the wrong cover or not enough cover can spell disaster for a company.
A List of the Most Common Types of Cover Available to Those in the Mining Industry
- Camp Construction – Building a mining camp that is safe, comfortable, and meets the needs of your company and workers is an extremely challenging task. While you take every precaution to make sure everything is up to par, the unexpected can happen. For this reason, you will want the best coverage to protect your investment.
- Civil Contractors – You use your experience and expertise to plan the structures critical to the mining site. You deserve the insurance cover that looks after your interests in the event of an incident.
- Crushing and Screening Contractors – You have a crucial and specialised task at the mine site. Balancing efficiency, safety, and precision is a difficult task. Make sure you, your staff and your equipment have sufficient insurance cover in the event of a problem.
- Drilling Contractors – Workers in this profession need specialised skills and equipment. Additionally, the drilling contractors on your site need specialised insurance cover to make sure that they are fully protected.
- Exploration and Mining Contractors – There are numerous risks inherent to mining. This is true for those who are tasked with exploration. Additionally, mining contractors also experience risks on the job. Make sure your crew is properly covered to lessen the worry of unforeseen circumstances.
- Project Managers – While overseeing everyone’s work at the mine site, do not forget to pay attention to your cover as a project manager.
- Quarry Contractors – Working in a quarry has its own specific risks. For this reason, quarry contractors require specialised insurance cover to be certain they are covered in the event of unforeseen problems.
- Surveying Contractors – The survey team is critical to the success of a mining operation. Be sure your surveyors are properly protected from the various risks of the job.
Do not risk your workers’ security or that of your company by being poorly or incorrectly insured. The few dollars you may save upfront are not worth the crisis improper cover will cause.
*Please Note* The material presented in this blog post is for informational use only. This should not take the place of a consultation with an insurance professional and is not legally binding advice.