Logging, Mining And Quarries Insurance FAQ

• At the minimum, logging, mining and quarry businesses need general liability insurance.
• If they have employees they will need workers compensation in most states.
• If they have vehicles registered to the business, or use vehicles for the business purposes, they will also need commercial auto.
• There are also other specialty coverages and endorsements that might be needed based on their 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:

• Commercial Package Policy (CPP)

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:

• Building
• Business Personal Property
• Personal Property of Others
• Improvements and Betterments

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:

• Accounts Receivable Coverage
• Contractors' Equipment Coverage
• Difference in Conditions (DIC) Coverage
• Electronic Data Processing Equipment Coverage
• Scheduled Property Coverage
• Transportation Coverage
• Valuable Papers and Records Coverage

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:

• Computer and Funds Transfer Fraud Coverage
• Employee Theft Coverage
• Forgery or Alteration Coverage
• Inside The Premises-Theft of Money and Securities Coverage
• Inside The Premises-Robbery or Safe Burglary of Other Property Coverage
• Money Orders and Counterfeit Money Coverage
• Outside The Premises Coverage

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:

• Contract-Performance of Service or Supply Bonds
• Fiduciary Bonds
• License and Permit Bonds
• Miscellaneous Surety Bonds

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:

• Commercial General Liability (CGL) Coverage
• Employee Benefits Liability Coverage
• Employment-Related Practices Coverage
• Owners and Contractors Protective (OCP) Liability Coverage
• Railroad Protective Liability Coverage
• Special Events Liability Coverage

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:

• Auto Medical Payments
• Business Auto Coverage
• Collision Coverage
• Comprehensive Coverage
• Hired & Non-owned Auto Coverage (HNOA)
• Uninsured/Underinsured Motorists Coverage

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:

• Excess Workers Compensation Self-Insurance Bonds
• Federal Coal Mine Health and Safety Act Coverage
• Longshore and Harbor Workers' Compensation Act Coverage
• Stop-Gap or Employers Liability Coverage
• Workers Compensation and Employers Liability Coverage

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:

• Excess Liability Coverage
• Umbrella Coverage

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:

• Business Legal Expense Coverage
• Cyber Liability Coverage
• Directors and Officers Liability Coverage
• Environmental Impairment Liability Coverage
• Fiduciary Liability (Pension, Welfare and Employee Benefit Funds) Coverage
• Identity Theft Insurance Coverage
• International Insurance Coverage
• Risk Retention Group Liability Coverage
• Tax Liability Coverage
• Tender Offer Defense Expenses Coverage