To illustrate the exposure and to provide a basis for further comments on mitigation and insurance we will look at two potential scenarios where mining companies utilize rented vehicles:
Close to Home:
ABC Inc. is in final preparations of a public offering. The president and the CFO are scheduled to commence a three-week road show to investors on the Eastern Seaboard and Europe in one week. It is mid-November. The CFO has a final meeting with investment bankers this afternoon and is running late. She grabs her coat and briefcase and rushes down the parking lot. As she gets into her vehicle she remembers that she should have already had snow tires put on her car and plans to get to it on the weekend. Exiting the garage, she commences a cell phone conversation and accelerates to the freeway. It is cold, light rain begins to fall and within minutes it is sleeting. She swerves, strikes a school bus, and crashes into the guardrail. Several children on a bus are seriously injured; the CFO will be in intensive care for two weeks with a broken hip.
Far Away:
Your senior Vice President has flown to New York to make a major presentation to a very large prospective partner organization in upstate New York. The success of your product launch relies on closing the new deal. This is the SVP’s first trip to the area. The plane lands just after midnight. It has been a long and exhausting day. He appears at the auto rental counter and secures a mid-size vehicle. The counter staff is very helpful with directions and within 20 minutes he is on his way. His destination is a two-hour drive from the airport. He proceeds uncertainly towards the town where a hotel room had been pre-booked for him. He takes a wrong exit and then doubles back and recovers, feeling more confident that he is on his way again. He begins to relax and 20 minutes later, his head nods. He crosses the center line and is involved in a head-on collision. Your VP plus and the driver and passenger of the other vehicle are airlifted to a local medical center. All three are in critical condition.
Find Out More:
It's important that proper insurance policies are in place for scenarios like this. This list is not exhaustive and there are a variety of other insurance coverages that mining companies need in order to address all the risks they face and prevent losses. Download our free guidebook “Axis Mining - Rented Vehicle Insurance & Risk Management Guide” here to find out how you can protect your company’s assets:
