As a contractor working in the mining industry, you’ll most likely be required to hold your own insurance.
Public liability is the most commonly required form of insurance for mining contractors, but it’s not the only one.
In this guide we’ll take a look at the insurance requirements for mining contractors and subcontractors in Australia.
If you’re after a quote or would like to speak with one of our brokers, please call us on 1800 808 800 or click the link below.
What insurance does a mining contractor need?
The types of cover you’ll need as a mining contractor really depends on the type of work you are undertaking.
If you’re a contractor on your own essentially providing your labour only, then you’ll probably find public liability is the main requirements.
If you’re providing advice in a professional capacity, you might find that professional indemnity is required.
And if you’re a larger business, perhaps with multiple staff and equipment on site, there is a host of other covers you might need.
We’ll now take a look at some of the more common forms of mining contractors insurance in more detail.
Public liability insurance
The most commonly required form of miners insurance is public liability.
Public liability insurance will respond in the event that you cause property damage or personal injury to a third party.
You will almost always find that public liability is mandatory before you’re able to enter a mine site as a contractor.
Whilst many contractors buy public liability from a direct insurer such as NRMA, AAMI etc, you’ll find that these insurers will exclude any type of mining work.
In fact, most insurance policies, even those through insurance brokers, will have a blanket exclusion for any work on a mine site or related to mining.
This means you need a specialist insurance policy that does cover not just mining, but the specific type of work you are doing on mine sites.
For example, some public liability policies will cover work on mine sites, but not if the work relates to the mining activities. So if you’re doing electrical work in the accommodation areas you’ll be covered, but if you’re doing electrical work on the mining equipment you won’t be covered.
So it’s important to tell your broker exactly what you’re doing so they can get you the appropriate level of cover.
Plant and equipment insurance
If you’re bringing your own plant and equipment onto the mine site you’ll need to have adequate insurance in place to protect it.
Whether you’re an electrical contractor bringing a couple of grand worth of power tools or a larger contractor with hundreds of thousands of dollars’ worth of equipment, there will be a policy to suit.
In some cases the insurer won’t be concerned about whether or not the equipment is being used on a mining site, but it’s definitely worth letting them know to be safe.
Professional indemnity insurance
If you’re providing professional advice then you may be required to hold professional indemnity insurance.
Even if the cover isn’t mandatory under your contract, it could still be a good way of protecting yourself.
Professional indemnity insurance will respond in the event that your advice results in your client suffering a loss.
Income protection insurance
Income protection isn’t a form of business insurance, but it is still critically important for a mining contractor.
As a contractor or subcontractor you generally won’t be covered by sick leave or workers compensation insurance, so you need to look after yourself in this regard.
Income protection insurance can cover a large percentage of your income for a period of time whilst you are unable to work due to injury or illness.
You’ll find that income protection can be a little more expensive for anyone working on a mine site, especially if working underground, but this is simply a reflection of the increased risk of injury on such sites.
Ensuring you are properly covered
For most forms of insurance, anything related to mining is a big red flag for most insurance companies.
You might be an electrician and find an online public liability policy that costs $500. You might think that adequately covers you regardless of where you’re undertaking your trade.
In reality, that $500 policy will almost certainly have an exclusion relating to mine sites, refineries and power stations etc. If you try to make a claim and it involves one of those sites, the claim will be declined.
It’s important to be very clear with the insurance company or your insurance broker that you are working on mining sites and exactly what you’re doing on those sites.
It’s just not worth the risk of having a claim declined.
Which mining contractors can be covered?
There is a wide variety of different contractors working in the mining industry in Australia.
The following list shows some of the different occupation types that we can cover?
- Air Leg Miner
- Boilermaker/Welder
- Dewatering Contractors
- Dragline Operator
- Drilling Contractors
- General Plant/Machinery Maintenance
- Longwall Support and/or Roof Bolting
- Maintenance & Repair inc Conveyor Belts
- Mechanical / Diesel Fitter
- Mine Relining Services
- Mineral Exploration including water drilling
- Mining Contractor
- Mobile Plant Operators
- Operation of Continuous Miner
- Project Manager
- Rock Bolters
- Shaft Sinkers
We can also provide Tenement Liability for holders of mining tenements.
Mine Risk
We’ve always been able to assist tradies and other workers in the mining industry here at Trade Risk, even though it’s something we don’t actively market.
This will change shortly with the launch of Mine Risk.
Just as Trade Risk specialises in the trades, Mine Risk will specialise in the mines.
It will still be the same award-winning team of staff you’re used to dealing with, but with a new specialist division and brand for mining contractors.
Until Mine Risk launches we can absolutely still assist with any mining contractor insurance needs you may have. Our team is familiar with the industry and we have plenty of clients already working in the mining industry.
We don’t have the ability to provide online quotes for mining contractors, so the best option is to speak with one of our specialists who can help you out.
For help with any of your mining insurance needs contact us on 1800 808 800 to speak with a specialist.
