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:
Office Premises:
Exposures:
- Furniture
- Fixtures and fittings
- Tenant improvements
- Computer equipment
- Telephone systems
- Geological samples
Considerations:
- Insurance may be required by the lease agreement due to the landlord’s interest in tenant improvements
- Assets should be valued and insured on a replacement cost basis
- Laptop computers may be excluded when off premises, or coverage may not apply outside of North America
- Coverage should include earthquake and flood
- Coverage should be extended to include property in transit
- Various extensions of coverage can be included
- Coverage should be included for extra expenses you will incur to continue your business operations in the event of a fire or other loss or damage at the insured premises
Exploration Projects:
Exposures:
- Field equipment
- Survey tools
- Mobile equipment
- ATVs & snowmobiles
- Camps and camp equipment
- Exhibition equipment
- Warehouse and storage
- Existing structures
Considerations:
- Policies may contain geographical limitations
- An asset schedule should be prepared with values agreed on either an actual cash value or replacement cost basis
- There should be a provision to automatically insure newly acquired items for a period of time
- Licensed equipment may need to be insured under an Automobile Policy
- Consideration should be given to the maximum accumulation of values at any given locations to ensure limits are adequate or whether coverage is warranted
Mine Development:
Property in course at construction, installation, erection, start-up, testing and commissioning, demolition, reconstruction or repair
Considerations:
- Covers property of every description
- Property is insured on a replacement cost basis
- The policy limit is the final completed value
- Property to be insured should be declared in the estimated completion cost
- Underground property can be included
- Coverage can be included for existing structures
- Coverage includes temporary utilities and facilities
