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:
Foreign Coverage Considerations:
- Locally placed coverage in both developed and developing countries rarely negates the need for a true global insurance program
- Local policies typically contain restrictive jurisdictional clauses and coverage is invariably inadequate
- A global program should wrap around locally purchased coverage
- A global program can combine locally admitted coverage
International Risks Considerations:
- Admitted vs. Non-admitted coverage
- Some insurance companies can arrange a global program with policies that comply with local licensing requirements
- Non-admitted coverage can result in insurance and excise taxes & penalties, claims adjustment issues/difficulties and Jurisdictional interpretations of policy
Injuries to Employees Considerations:
- Coverage for expatriate workers while overseas and not covered by BC Workers’ Compensation
- Coverage can be broadened to include consultants
Foreign Automobile Considerations:
- Covers liability for foreign automobile excess of locally required insurance
- Availability of coverage depends on jurisdiction
- Policy provides both DIC – difference in conditions and DIL difference in limits between local insurance and standard Canadian coverage
- Coverage can broadened to include consultants
