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Mining is a high-risk undertaking. Even if you take every preventive effort, the risk of loss always looms. A brief look at the mining industry will reveal countless accidents that have rocked it in history. In 1887, the La Boule coal disaster killed 120 miners while Xiaojiawan coal mine explosion of 2012 killed 45 people. You can never know when the next accident will strike.
Mining industry players have to invest in safety, technology, and more importantly, insurance cover. The mining insurance cover caters for liability, income, and property so that you can focus on optimizing production and profits. Here are the main areas that need appropriate insurance cover in the mining industry.
Pollution and Environment Insurance
It is true that mining, in most of the cases, disrupts the environment. If coal deposit sits below a forest, water resource, or game reserve, these resources will be disrupted by the mining process. This insurance cover is crucial for meeting possible legal defense fee and costs that might be associated with cleaning up. Depending on the insurance policy, it could even cover post-mining field reclamation.
Mining Auto Liability Cover
The process of mining requires the use of vehicles to transport staff to and from the mining sites as well as move mined materials. The mining auto liability insurance is used to cover these vehicles. It can help you to meet regular auto maintenance costs and liabilities if they are involved accidents. When the vehicles get written off, the cover can also be used to replace them.
Multinational Liability Cover
If your mining operations are located in a different country and you get yourself on the wrong side of the law, this is the cover you need. It meets your legal representation and other liabilities when operating in a foreign land.
Machinery Insurance
The machines used in the mining industry are very expensive. To ensure they operate optimally, this cover is used to meet the costs of their inspection, testing, repairs, and replacements.
Freight Insurance Cover
This cover is used to cater for materials, raw ore and finished products when they are in transit. Note that the cover is, in most cases, specific on the type of transport involved. For example, your cargo might only be covered when being transported in the mining company vehicles.
Whether new or old in this industry, having the right insurance cover is very important. Note that you should only use the insurance company with a good reputation.
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