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All sectors in the mining industry carry their own risks which can only be safeguarded against with the right insurance cover. Contractors should be aware that civil and mining insurance is vital for their company, and consideration should be taken as to which insurance policies are essential when developing a risk management plan.
When working with mine sites and energy storage or generation sites, contracts often include requirements for specific insurance cover you may not already hold. Whether you're looking for mining or civil contractors insurance, read on to learn the importance of procuring the correct insurance and why it matters.
Principal forms of insurance
Depending on the type of work you will be carrying out, and the details of the signed contract, different forms of civil and mining insurance may be required. For those smaller contractors providing their own personal labour only, Public Liability Insurance may be sufficient. Professional Indemnity is also recommended for those providing consultancy services or professional advice.
Once a contractor company expands to include multiple employees, requirements include Workers Compensation Insurance. Project details, including specific tasks, as well as the machinery and equipment being used on-site, will affect further insurance requirements. This may involve contract works insurance, equipment insurance, income protection, or industrial special plant insurance.
Workers compensation
Almost all contracting positions require sufficient insurance to be arranged before work is started on a mine or energy site, the most vital of which is workers' compensation insurance. From civil engineers and site safety officers to machinery operators and laborers, all contract roles will benefit greatly from having workers comp in place should an accident or injury take place.
While this tends to be a compulsory form of insurance, there is a multitude of benefits to workers compensation insurance. It acts as a safety net to cover wages for an employee should they be unable to work, as well as taking care of any medical costs after an injury.
Civil workers insurance like this can seem extra cautious to some, but the reality is an average of 100,000 workers file compensation claims each year in Australia, with injuries at work typically costing $11,00 per claim. Trust the experts when we say this is not a bill to get stuck with!
Is the company liable?
Should an accident or injury occur, the liable party will depend on the unique insurance policy you have in place. This makes acquiring the right cover for your specific needs a vital step to safeguard your business. Policies are custom-made, but generally cover the costs of an investigation, medical costs for the injured party, as well as any damages awarded and settlement costs.
It's important to work with a mining contractor's insurance specialist as unlike typical insurers, they have the industry knowledge needed to supply you with the best coverage for your specific needs. As experts in civil and mining insurance, Connect Business Insurance has a niche understanding of the requirements involved, and we are adept at providing public liability and workers' compensation insurance to a wide range of contractors in this field.
Public Liability
In most cases, public liability insurance is mandatory before entering a mine site. This is a common form of mining contractors' insurance, as it protects the energy or mine site should personal injury or property damage happen on the property to a third party.
Many traditional insurers will not supply public liability to contractors employed on mine sites, sometimes even having a blanket ban in place for mining-related work due to the niche risks involved. This can be stressful to navigate as a contractor, so it's important to work with specialist public liability insurers like the experienced team at Connect Business Insurance.
We provide specialist insurance policies depending on the exact work involved, and whether you're operating directly on mining equipment or spaces, or on non-mining related activities on the mine site. Working with a broker who understands the nuts and bolts of your job guarantees a premium level of custom cover.
What is my obligation?
Depending on the existing policies of the mine or energy site you're contracted to, the insurance obligations will vary. Some companies require specialist civil and mining insurance for each additional role carried out on-site, covering equipment and property liability as well as the standard workers compensation insurance.
While mining insurance can seem overwhelming, especially for small contracting firms, the benefits of the safety net provided heavily outway the costs involved. As an employer, you have an obligation to protect your employees and ensure their health and wellbeing should an unfortunate incident occur. Public liability is also a highly recommended obligation, as it can save a business from folding due to injury or damage to a third party, even if it was an accident.
Work safe with proper insurance coverage
While the benefits of working on mine and energy sites can be enormous, the reality is there are potential risks involved. Unfortunately, many insurance companies refuse to understand or recognize these unique hazards, regardless of whether you have a clean track record as a contractor or not. While they will absolutely provide cover for electricians, engineers, and other civil contracting roles, this usually does not extend to work on mine sites.
The risks of having a claim declined are too great, making correct insurance tailored to mine site contracting a vital step to safeguard your business. Working with specialist insurers like Connect Business Insurance means acquiring tailored cover for all mine and energy site contracts.
Smart insurance with Connect Business Insurance
As long-term market leaders providing specialist insurance to a wide range of WA industries, the team at Connect Business Insurance has the expertise to meet your specific needs. As well as supplying custom public liability and workers compensation insurance to mining and civil contractors, we can advise on other areas of insurance pertaining to your specific role and work format when on a mine site.
For more information on our expertise within civil and mining insurance for contractors, or for advice on the best niche insurance for your company, get in touch today and ask for a quote.
*Please Note*
The material provided here is for informational use only. It does not constitute legally binding insurance advice and should not be used to replace an individual consultation with an insurance professional.
