Property Damage & Business Interruption:
Open cut coal mines require substantial capital investment into large-scale conveying systems, draglines, earthmoving equipment, excavators and dredges, coal washing plants, screening plants,milling and crushing equipment, administration buildings, accommodation blocksand the like and have significant values at risk. Collapse of rock walls,overburden, flooding and the use of explosives for blasting are possible sources of loss. Spontaneous combustion is a particular problem with brown coal and places restrictions on the volumes that can be safely stockpiled. Mines may also own or lease port terminals, railway infrastructure and could own rolling stock for which a special policy will be required.
Substantial Business Interruption exposure due to the presence of custom-made machinery. In the event of a significant accident, reinstatement of machinery and infrastructure is the only option. The time required to replace key items of machinery must be established; being specialised, lengthy interruptions should be anticipated.Other sources of interruption include loss or damage to transport links, port blockage (for black coal exports) and loss or damage occurring at a major customer’s premises. Brown coal mines, for example, supply exclusively to the power industry.
For mining machinery and equipment such as diggers and excavators, cover will be provided under a mobile plant and machinery cover such as an Industrial Special Plant (ISP) cover. ISP cover includes options for:
· Property Damage on owned machinery and equipment
· Hired in Plant
· Road Risk
· Consequential loss,including increased cost of working
· Lease repayments/value;and
· Broadform liability
The Public Liability exposure could be significant. Although there will be relatively few visitors,in most cases, the insured is likely to employ a variety of sub-contractors who could offer blasting services, transport services, repair and maintenance services and so on; injury to sub-contracted workers could result in public liability claims from the injured worker or Workcover authorities.Additionally, there is a considerable risk of trespassers being injured in open cut mine sites, on railway lines owned or operated by the insured, in transport facilities and in storage or port terminal operations. Major areas of exposure include: explosives, use of heavy vehicles, landslides, rockfalls, use of cranes etc; railway sidings; and the size of the facility which makes it difficult to adequately secure. Exposure to coal dust, slips, trips and falls and the use of heavy machinery will be major concerns. The potential for damage to adjacent third party property from fires and explosions should also be investigated. Damage to structures or buildings owned by third parties could occur due to subsidence whilst the storage of explosives creates a significant risk to third parties. Abandoned mines create a significant residual exposure,whilst there are a number of significant environmental issues to consider with mining operations including waste water, emissions from coal processing (e.g.brown coal briquette manufacturing) and surface run-off.
The underwriter/adviser will be interested in:
· The length of time in business;
· The loss history;
· The level of quality control adopted by the insured and whether independent testing laboratories randomly test the insured’s coal;
· Whether the insured keep accurate records of all testing and analysis.
There is a machinery exposure based on the reliance on mobile machinery, conveyor systems, drag lines and excavators and heavy and continuous use. Values of plant and machinery, and mobile machinery, are likely to be high and some items may be custom made or imported. More complex/specialist or extensive repairs of foreign built machines could necessitate flying in overseas specialists/mechanics; this could significantly increase repair costs. Machinery business interruption cover should be considered; breakdown of an item of key production machinery could result in a significant loss of production capacity.
Underwriters/advisers will be interested in:
· a schedule of all items to be insured with their age and new replacement value listed;
· details of the maintenance schedule and frequency of inspections on machinery;
· details of the parties responsible for machinery and equipment maintenance and their experience/qualifications;
· details of the availability of local repair facilities and spare parts;
· potential lead times on replacement equipment or components; and
· whether machinery has overload protection.
Mining Insurance Broker Brisbane:
Hunter Broking Group can assist with Mining Insurance & Mining Equipment Insurance. Through industry specific insurers, your designated advisor has access to e a comprehensive range of insurance products that can be tailored to suit most mining operations and mine sites. We can arrange insurance for various segments in the mining industry including:
Hunter Broking Group pride themselves on having a local presence with a national strength, our technical product experience allows us to manage and service mining insurance products such as:
Mining equipment is a core focus for our advisors, whether we are looking after small hand held tools or heavy mining equipment, such as screening plants or mining excavators, Hunter Broking Group have the experience to provide the appropriate advice for your size and risk exposures.
Our experienced brokers can help you get the most appropriate insurance cover by assessing your specific needs and recommending the best value insurance solution for your business, whilst still maintaining the highest standard of cover.
Surround yourself with professionals who make your life easier, when you call through to us – this is our objective.