The mining industry has long been seen as an attractive lure for tradies. After all, it offers adventure, lucrative pay packages, great leave entitlements and excellent opportunities for career growth. And with natural resources making up around 55% of Australia’s total national exports, the mining industry offers plenty of job opportunities for experienced contractors. However, working in the mining industry comes with a unique set of risks, so it’s essential that contractors have adequate levels of insurance cover. Despite this, many may still wonder, why is mining contractor insurance so important?
What exactly is mining site contractor insurance?
Mining site contractor insurance is made up of several different insurance policies that combine to offer total cover for those operating in the mining industry.
The great thing about mining site contractors insurance is that it can be fully customised to suit the unique circumstances of each individual. So, regardless of whether your work includes high or low-risk activities, whether you’re a dragline operator, a shaft sinker or a mechanical fitter, you can arrange for the necessary level of cover.
However, it’s important to remember that even the most comprehensive mining insurance won’t cover you for illegal activities or deliberate damage.
Why is mining contractor insurance important?
There’s no denying that working on a mine site comes with a higher level of risk than working in an office building or at a residential property. You’re surrounded by heavy machinery, potentially working with hazardous substances and working near very expensive equipment.
Employees will generally be covered by the insurance of the mining company they work for, but as a contractor, you are expected to have your own insurance policy. Mining contractor insurance will give you protection and peace of mind should you ever be involved in an incident on a mine site that causes damage or injury – an incident that you would otherwise be financially liable for.
It will also protect you from claims for financial compensation and cover the cost of legal fees (should an incident result in court action being taken against you).
Which policies should be included in Mining Insurance?
As a mining contractor, it’s essential that the mining insurance policy you take out offers complete cover for the needs of your business. While mining contractors insurance will vary, it should always include policies for:
- Professional Indemnity: Professional Indemnity insurance will protect you against claims of financial loss that resulted from negligence or a breach of professional duty. For example, if you were engaged to provide engineering drawings for a project, and the drawings were later found to be flawed, professional indemnity insurance would ensure you weren’t required to provide compensation out of your own pocket.
- Public Liability: Public liability insurance safeguards you against having to pay for accidental damage or injury caused by your actions while on a mine site. Without public liability insurance, you could be held personally responsible for the loss of income if a mine was forced to shut down operations following an incident.
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