Mining Risks: 8 Ways to Prepare for Large Mining Claims

28 July 2015

Mining risks are complex, high value and often unpredictable, so the more prepared you are for large claims, the better. There are tangible benefits to be gained from loss planning and scenario testing, which can help to ensure that risk mitigation and insurance is fit for purpose. 

We recommend that mining companies:

  1. Take a strategic approach to managing risk. Losses will always happen in the mining industry, but with a proactive approach, companies can significantly limit the scale of those potential losses.

  2. Familiarise themselves with the factors that are frequent contributors to major losses – including remote locations, human error and supply chain disruption – and work to mitigate those factors wherever possible.

  3. Make sure that their insurance cover accurately reflects their whole range of exposures, including those that are unique to the mining industry.

  4. Talk to their brokers and insurers to make sure they are absolutely clear on how their policy would respond in the event of a claim. 

  5. Agree claims processes upfront.

  6. Use loss planning and scenario testing to help ensure that insurance and mitigation measures are fit for purpose.

  7. Think about how they can minimise risks and potential losses at the design stage of any new site – with advice from their insurers, where appropriate.

  8. Make the most of the current good insurance market conditions, including capitalising on the breadth of cover and reasonable premiums on offer.

While implementing these points requires some commitment on the part of mining companies, the potential rewards in terms of limiting losses – as well as lengthy, expensive site closures – are significant.

Download reducing large losses mining whitepaper

For further information, please contact Simon Delchar, CEO, Property, Casualty, Mining & Power on +44 (0)20 7466 6226