Mining companies own many physical assets in their care. Depending on the stage and nature of the project or mine development, they will require coverage for assets such as contents of office and tenant improvements, camp buildings, stock and equipment, mobile equipment, automobiles, watercraft, drones, fuel supply and tank storage, and mining property.
Here are some of the exposures that need to be covered and the key considerations for them:
Mining company employees who must work overseas can be exposed to a number of risks that pose a threat and possibly endanger their lives. While operating in foreign jurisdictions and being unfamiliar with the local environment, it’s important to take into consideration what could happen and how to properly protect yourself and your company from harm.
Here are some exposures and their key considerations in relation to crisis response for employees of mining companies working overseas:
Canadian mining companies who operate in foreign jurisdictions need to understand local laws, regulations, customs and business practices. Most governments have strict rules relating to insurance policies covering risks in their own country. These rules are designed both for the public benefit by ensuring liquidity standards, as well as protectionist measures for their insurance market.
Here are some exposures and their key considerations in relation to international coverage for mining companies:
Also commonly referred to as an Individual D&O Policy, the Side A Coverage protects only the Directors and Officers rather than also providing coverages and benefits to the corporation. The coverage is exceptionally broad as it often contains few exclusions and many advantages to the D&Os.
Side A Coverage can also apply excess of the limits provided by the corporate policy, but will drop to pay first dollar and defense costs when no coverage is available through the corporate policy or if the corporate policy is held up in litigation.
There are many other benefits to having a Side A insurance policy in place. Take a look at some of the other reasons why directors and officers can benefit from this policy:
Directors and Officers (D&Os) of companies in the mining industry can be faced with a wide range of legal exposures arising from their duties to the corporation, and as such, having a Directors & Officers insurance policy in place can help cover financial losses that can arise from a variety of claims.
Insurance protection is provided under the Directors’ and Officers’ liability policy. There are commonly two types of insurance coverage available:
Directors and Officers (D&Os) of companies in the mining industry deserve to be protected through insurance policies as they are risking their personal assets for the benefit of shareholders. As such, having proper risk management systems and insurance policies in place that can cover against losses to the D&Os as well as the corporation are important.
Here are 3 levels of protection that are available to Directors and Officers of mining corporations to take into consideration:
Given the amount of overseas work mining corporations need to conduct, it’s important that they have proper insurance coverage for transportation systems and vehicles.
Transportation will be needed for machinery, cargo, staff, specialists, and many other operations’ needs. As such, there can be a number of risks and liabilities that mining companies need to consider in order to maintain smooth sailing of their operations and mitigate losses.
Here are a few key considerations for transportation-related exposures and liabilities:
Directors and Officers (D&Os) of companies in the mining industry can be faced with a wide range of legal exposures arising from their duties to the corporation. For example, they owe a duty to manage the corporation, a duty to act in the corporation’s best interests, and a duty to exercise care and skill.
Having a Directors & Officers insurance policy in place can cover financial losses that would not be covered under Errors & Omissions (E&O) policies, such as securities claims. It also provides coverage for individual D&Os whereas the E&O policy would only cover the entity.
However, some policies will have exclusions to them and it’s important to find out exactly what each policy will and will not cover. Take a look at some of the common exclusions that may be involved:
Mining companies face a variety of insurance risks due to the nature of their operations often crossing international boundaries. Invoking proper risk management practices can assist mining companies in reducing claims related to liability issues.
Therefore, working with an experienced broker who can provide expert guidance and advice in conducting a proper assessment of risk exposures and coverage options can significantly reduce the cost of insured losses, deductibles, and claim expenses while obtaining the most favourable terms.
Take a look at some of the liability risks mining companies face and their key considerations:
As the coronavirus (COVID-19) outbreak evolves, businesses face growing uncertainty as to how this pandemic will affect their operations long term. This is especially true when you consider that many organizations—including bars, restaurants, entertainment venues, retailers and manufacturers—have had to close their doors or cease operations as a result of COVID-19. Not only has this severely impacted their ability to serve their customers, but, for some, it has also led to indefinite disruptions—disruptions that could impact their bottom line.