Mining the riches of the Earth supplies the world with the fuels and precious metals needed to sustain our lifestyles. Whether your company engages in surface mining or underground mining, you will need to ensure that you are properly protected with a suitable mining insurance policy. That way, if one of the many risks inherent in this industry results in loss or damage, your firm will be able to weather the financial repercussions and continue to generate profits.
What Types of Businesses Fall Under the NAICS’s Mining Sector?
The National American Industry Classification System (NAICS) classifies all U.S. businesses into specific sectors and subsectors. This is done primarily for the purpose of collecting and analyzing economic data.
The NAICS currently classifies 34,521 American companies as belonging to the mining sector. These include the following business types:
- Mining for Mineral and Precious Metals, including:
- Iron, Gold, Silver, Lead, Zinc, Copper, or Nickel Ore
- Uranium-Radium-Vanadium Ore
- Phosphate Rock
- Potash, Soda and Borate
- Crude Petroleum and Natural Gas Extraction
- Natural Gas Liquid Extraction
- Drilling Oil and Gas Wells
- Surface Mining for:
- Underground Mining for:
- Bituminous Coal and Anthracite
- Dimension Stone
- Construction Sand and Gravel
- Industrial Sand
- Kaolin and Ball Clay
- Mining and Quarrying of:
- Dimension Stone
- Crushed and Broken Limestone
- Crushed and Broken Granite
- Support Activities for:
- Coal Mining
- Metal Mining
- Nonmetallic Minerals Mining
- Oil and Gas Operations
What Is Mining Insurance?
Mining insurance is a specialized form of business insurance. It provides all of the coverage types and options you may need to properly insure your mining company against the hazards of the industry. As with most business insurance policies, it includes liability, property and income coverage so that you can focus on what is important.
Mining insurance also provides mining businesses with several coverage options unique to this type of industry. At times, this coverage can become quite complex, so it is to your benefit to sit down with an independent insurance agent who can help you assess your coverage needs and find competitively-priced policies that can meet those needs.
Companies in the Mining Industry Have Unique Insurance Needs
One of the biggest risks faced by companies in the mining industry has to do with liability lawsuits against the company. There are several different types of liability coverage available with a mining business insurance policy. Some types you may want to strongly consider include:
- Pollution and environmental liability coverage: Mining can be a messy operation and though precautions are taken, sometimes your work results in environmental damage. This insurance will provide coverage for legal defense fees and hazmat cleanup of pollution related to fuel and chemical storage tanks, sediment ponds, filtration facilities, reclamation projects and brownfield sites.
- Commercial auto liability coverage: Mining companies frequently use vehicles to transport crews to and from job sites and to carry away mined materials. This type of insurance can provide liability coverage for your entire fleet of company-owned vehicles from cars to crew-buses to tractor-trailers.
- Foreign and multinational liability coverage: If you engage in drilling or mining operations outside of the United States, this coverage may be necessary to protect you against potential liability lawsuits while doing business on foreign soil.
Additionally, equipment and machinery used within the mining industry can be extremely expensive, so it is important that it is property covered by your business insurance policy. In addition to general property insurance, you may wish to invest in:
- Boiler and machinery coverage: This provides coverage for expensive machinery used by the mining industry. It provides coverage for such things as routine boiler inspections, sprinkler system inspection and testing, repairs and replacements in the event of breakdowns of processing and mobile equipment and compressed containments for heating and processing.
- Cargo insurance coverage: This is designed to insure the equipment, ore and other materials when they are being transported from one place to another. This coverage applies whether the property is being transported in your own business-owned trucks or by a hired carrier.
These are far from the only insurance options you will need to consider. There are several different ways you can protect your company’s future in the event of a disaster such as a mine cave-in. It is in your best interest to review your many options with an insurance professional so you do not overlook any important coverage and do not purchase coverage you do not need.
Find a Mining Insurance Policy that Provides the Coverage You Need
Understanding your many different coverage options can be tricky. You may find it to your advantage to discuss your risks and assets with an independent insurance agent in the Trusted Choice network before selecting a mining insurance policy. These agents are free to work with several different insurance providers as they help you find and compare policies that are appropriate for your business.
With offices in more than 27,000 locations nationwide, it is likely that there is a Trusted Choice network agent located near you. Contact a local agent to get more information about mining insurance and discover how much time and money a Trusted Choice agent can save you.