Working as a contractor within the mining industry comes with its own unique rewards and challenges.
While having adequate insurance cover plays an important part in any successful business, having the right kind of insurance is especially important for those operating in the mining sector.
In particular, there are 3 types of insurance required in the mining industry: public liability insurance, professional indemnity insurance and motor vehicle insurance.
- Public Liability Insurance: As a contractor or small business owner you may already have public liability insurance – but does it cover you for work carried out on mining sites? Contractors are often surprised to hear that most major insurers specifically exclude work completed on a mine site from their insurance policies. So, unless you have a mine site specific policy, you may not be covered. Public liability insurance ensures that you won’t be personally responsible for any financial costs associated with injury or damages arising from an incident where you are found to be at fault. Mine site specific public liability insurance is particularly vital for anyone who will be operating machinery while on a mine site, as this kind of work carries higher levels of public liability risk.
- Professional Indemnity Insurance: In a world that is becoming increasingly litigious, professional indemnity insurance should be considered a “must-have” for all small businesses and contractors who are working within the mining industry. Unlike public liability insurance which covers damages caused by physical actions (e.g. an incident on-site where a worker is injured or property is damaged), professional indemnity insurance covers financial losses resulting from error or omission. For example, an engineer may be contracted by a mining company to design new infrastructure. But due to a mistake in the design, the infrastructure is found to be faulty. The mining company can then sue the engineer to recoup the cost of the failed project. In this case, professional indemnity insurance would cover the engineer’s legal costs, as well as paying out any necessary compensation. Having adequate professional indemnity insurance can give you peace of mind when dealing with large mining companies, enabling you to concentrate on the work at hand.
- Adequate Motor Vehicle Insurance: If you’re interested in finding work on a mine site then it’s important that you have adequate motor vehicle insurance. Most contractors who operate on mine sites would agree that their vehicles play an essential role in their ability to run a business. But many standard motor vehicle insurance policies contain exclusions relating to work carried out on a mining site. This is why reading the fine print is so important – while it may seem like a painful exercise, being fully aware of the exclusions and limitations attached to a policy could save you serious money in the event that your motor vehicle is damaged, or accidentally causes damage, while on a mine site. Insufficient cover could lead to you losing your vehicle, and potentially, your whole livelihood.