Frequently Asked Questions About Small Business Insurance
Logging, Mining And Quarries Insurance FAQ. Logging, mining and quarrying operations involve removing natural resources from the ground, providing some initial processing and then sending the material elsewhere for additional processing or to the final customer.
Operations are usually performed at remote locations and the work is inherently dangerous. Product liability exposures are usually low because the processing of the raw material is very limited.
These operations are becoming more automated, which leads to higher machinery and equipment values. Liability exposures are limited because customers do not usually visit the locations, but some operations have attractive nuisance hazards that must be identified and protected, as well as potentially significant environmental issues that may also need attention.
We wanted to provide a deeper dive into small business insurance to help our readers get a better understand of the commercial insurance policies they want and need with the Logging, Mining And Quarries Insurance FAQ.
Read the Logging, Mining And Quarries Insurance FAQ to learn what type of commercial insurance coverages are right for your company - including liability, property, workers compensation and other specialty policies.
According to the U.S. Bureau of Labor Statistics, "The Mining sector comprises establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. The term mining is used in the broad sense to include quarrying, well operations, beneficiating (e.g., crushing, screening, washing, and flotation), and other preparation customarily performed at the mine site, or as a part of mining activity.."
Logging, Mining And Quarries include - but are not limited to - the following types of operations:
You can reference the Insurance Definitions, Dictionary And Glossary to better understand the commercial insurance policy terms and language used in our Small Business Insurance FAQs.
Following are some suggested commercial policies and coverages applicable for Logging, Mining And Quarries operations:
Package policies are the most convenient way to combine several different coverage parts together in a single policy. This approach can provide premium discounts for some of the coverages. Logging, mining and quarrying operations can be combined using a commercial package policy. These operations are not eligible for businessowners policies.
Types Of Logging, Mining And Quarries Package Policies:
Logging, mining and quarrying operations have extensive machinery and equipment values. Some items are mobile and may be better covered by inland marine coverage forms. However, there are many location specific items to be covered under a commercial property coverage form.
A commercial output policy may be the best product to cover both types of property. A mandatory time element endorsement must be attached when business income is provided for mining operations. This form allows the insured to choose whether or not to include business income for damage to underground mining machinery and equipment.
Types Of Property Coverages:
Logging, mining and quarrying operations have machinery and equipment items that should be listed and covered on a contractors' equipment coverage form. These values are usually high and the machinery and equipment is usually situated at remote locations.
Types Of Inland Marine Coverages:
Crime exposures vary, depending on the size and complexity of the operations conducted. The basic coverage needed by all operations is employee theft and forgery and alteration coverage. However, as operations increase in size and complexity, other coverages may be needed.
Types Of Crime Coverages:
The type of logging, mining or quarrying operation determines the types of surety bonds needed. At a minimum, license and permit bonds are needed but others could be needed, depending on the operations, locations and contracts involved.
Types Of Surety Coverages:
The premises general liability exposure is limited if access to the premises is adequately controlled and limited. While access to more remote areas may be difficult, quarries located near residential areas represent an attractive nuisance for local swimmers and thrill seekers.
Types Of Liability Coverages:
The automobile exposure for these operations usually involves hauling logs, coal, gravel or other natural resources. The vehicles and trucks used are usually heavy and must frequently navigate and maneuver on narrow and winding roads.
Types Of Business Auto Coverages:
On-the-job injuries sustained by their employees must be insured by employers through a workers compensation policy or a state sanctioned self-insurance arrangement. The workers compensation exposure for these operations is extreme due to the dangerous conditions, operations performed and limited access to medical facilities.
All coal mine operations are subject to the Federal Coal Mine Health and Safety Act. Quarry workers may be subject to the Longshore and Harbor Workers' Compensation Act.
Types Of Workers Comp Coverages:
The most significant excess or umbrella liability exposures for these types of operations are from automobile liability and employers liability coverages.
If the professional cannot be combined with other coverages, a separate excess liability policy over the professional liability policy, including all amendments and exclusions, should be purchased to provide additional limits on that exposure.
Types Of Excess Liability Coverages:
Larger operations may own or lease aircraft to make travel between multiple locations easier and more convenient. This is needed because of their distance from commercial airports and difficult road conditions.
Types Of Aviation Coverages:
Quarry operations frequently use barges when extracting gravel. These are usually covered under an ocean marine policy.
Types Of Ocean Marine Coverages:
Additional exposures for logging, mining and quarrying operations must be revealed and evaluated using some type of coverage analysis technique. The analysis may indicate that one or more of the following coverages should be recommended.
Types Of Specialty Coverages:
There are many commercial insurance policies available for Logging, Mining And Quarries. To find out what types of coverage your business needs, speak to a professional insurance broker with experience in insuring these types of businesses.
Learn about the coverages available for specific industires with the Insurance FAQs below: