Insurance can be difficult to obtain for the somewhat specialist mining industry. Many insurers in Australia take the easy way out, declining all cover when it comes to mining and drilling companies, particularly when explosives are involved. Others (perhaps bravely) offer lesser or restricted contracts at loaded or increased premium prices. Either outcome is hardly a suitable solution for safeguarding against the hazards involved. In such a situation, a specialist, experienced broker is needed, particularly one who understands the specific needs of the industry.
The mining insurance broker
According to a Mining Insurances, a Queensland company that specialises in mining insurance, it has been clearly demonstrated since 11 September 2001 that insurers worldwide are frightened of accepting any “risk” with which they have little or no experience.
“Until about 1994, this was the case Australia-wide,” a company spokesman said. “At that time a couple of insurance advisors with a mining background undertook to assist insurers in conducting a factual study into the mining and drilling industries accident records. This study included most major Australian mining companies with direct reference to State Worker Compensation Board & Mining Department reports, interviews with Mine Safety officers in mining centres Australia-wide and actual underground inspections by senior underwriters.”
The study concluded that underground (hard rock) mining had a better accident and safety record (albeit marginally) than many other industries, including the railway and building trades. Comprehensive risk insurance packages were offered to miners and drillers (including underground workers) following this step forward. Most of the packages were provided at the same premium rates as those offered to other qualified tradesmen.
Comprehensive mining insurance
Comprehensive insurance package benefits are currently available at competitive premium rates, however health and an individual’s pastimes will almost certainly affect cost of premiums and level of cover. Those benefitting include professionals in various expert fields (with various obscure job titles), such as Muckers, Boggers, Loader Drivers, Shotcreters, Rockbolters, Platelayers, Charge Car Operators, Ringfirers, Shotfirers, Timbermen (or Pipefitters), Loco Drivers, Shute Pullers, Hand Held Miners, GD Miners, Raise Borer Operators, Shafter Sinkers (or Shaft Shrinkers), Alimak Miners, Diamond or Percussion Drillers, Shiftbosses, Foremen, Superintendents, Engineers, Geologists, Rock Doctors and Metalurgists.
”Being located in a major mining centre”, Mining Insurances’ company spokesman added, “with personal backgrounds in the mining industry, [we] specialise in this type of insurance. Many mining clients have contacted us over the years after having already spoken to insurance agents, life brokers, bankers, accountants etc, around the country for advice on their insurance program, with little or no satisfaction. Whilst these people mean well, they genuinely have no concept of what you actually do in your job and therefore cannot adequately describe the duties and risks associated with your occupation to an insurance company, who then decline protection, or offer cover at anything up to 500% above standard rates! We really can describe your occupation. We do understand the difference between a Miner and a Mining Engineer… We even know what a Twee Puncher does for a living!”
Looking in the right place, mining insurance is clearly not as difficult to obtain as you might expect, but as with most insurance it’s always wise to seek the services of a broker that understands the specialist insurance category. This can make a big difference between gaining the exact cover needed with acceptable premium costs and being issued with an insurance plan that doesn’t fully appreciate the industry’s dangers or offer a realistic cost of covering the mining professional against these risks.