mining excavation

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:


Forest Fires:

You can be charged expenses that are needed to fight a fire that you are found to be legally liable for having started due to your company’s mining activity.

Consider these key factors:

  • Is there any potential risk for a forest fire at your projects?
  • Have you implemented any controls regarding burning debris?
  • Do you have a no smoking policy in place?
  • Do your contractors have Forest Fire Fighting Expense coverage? Are their limits adequate?



Your employees could be exposed to a number of risks while working across international boundaries, whether it be as a result of criminal activity, natural catastrophe, political violence, terrorism, or kidnap, detention and extortion.

Consider these key factors:

  • Are all employees covered under workers’ compensation?
  • Have you purchased accident insurance for senior employees?
  • Do you need to protect against Kidnap or Ransom exposures?
  • Have you developed a safety training program at each exploration site?



Due to the nature of the work being done, you can be held legally liable for any damage to the environment of your project sites. If that happens, you can be held accountable for first- and third-party property clean up expenses.

Consider these key factors:

  • Do you keep or store any pollutants at your project sites?
  • Do you have any above-ground or underground storage tanks?
  • Have you developed a clear plan for responding to and reporting spills? Are all employees aware of this plan?
  • Are sub-contractors required to carry pollution coverage?


Aviation (Helicopter):

Along with other methods of transport such as automobiles and watercraft, aircraft such as helicopters may also be utilized. In which case, there are key factors to consider such as:

  • Have you built helicopter pads and/or landing strips?
  • Do you service or maintain any helicopter or fixed wing landing facilities?
  • Will you store equipment, machinery, or other goods at any airport premises or landing facility?
  • Will you be flying anyone such as analysts into your projects? If so, have you prepared waivers for them to sign?


This list is not exhaustive and there are a variety of other insurance coverages that mining companies need in order to address all the risks they face and prevent losses. Download our free guidebook “Mining and Mineral Exploration Insurance Guide” here to find out how you can protect your company’s assets: