Insurance for Mining Equipment and Supply Companies

Insurance for Mining Equipment and Supply Companies

January 12, 2023 / 5 mins read

Your mining equipment and supply company is known for its reliability and high performance in Prince George and the surrounding area.

Your industry is not without risk, though, and you need a mining equipment insurance package to protect your investment.

Ask your Western business insurance expert what mining equipment insurance package is right for you.

We can tailor a mining equipment insurance package to suit your business’s needs, whether you’re in Prince George or the surrounding area.

What kind of insurance does my Prince George mining equipment and supply company need?

A mining equipment insurance package will protect you, your employees, work vehicles, and your equipment against on-the-job risks, claims, and injuries that you could face. You will be able to show your clients that you have mining equipment and supply insurance.

Ask your Western business insurance expert to go over the different types of coverages that can be included a customized mining equipment and supply insurance package to protect your business.

Commercial General Liability (CGL) Insurance: Accidents can and do happen. This type of insurance can cover you against claims for injury or property damage to others related to your mining equipment and supply business. It also protects you against claims of false advertising.

If you were sued for any of those claims, CGL would help cover legal costs to defend a claim against your business in court, as well as costs to cover damages to compensate third parties.

Without commercial liability insurance, you would be responsible for paying any liability costs on your own.

As a mining equipment and supply company, it wouldn’t be unusual to have $2 million in CGL coverage.

Check with your Western business insurance expert about how much CGL insurance you will need to protect your mining equipment and supply business.

Equipment Breakdown Insurance: This type of insurance is also known as boiler and machinery coverage. It protects your equipment and machinery if they suffer a sudden and accidental breakdown due to an insured peril.

Equipment breakdown insurance covers damages caused by power surges, electrical shorts, mechanical breakdowns.

It is applicable to almost any kind of equipment, including office equipment like computers (not software) and photocopiers.

Let your Western business insurance expert explain in detail what is covered with equipment breakdown insurance.

Tools and Equipment Insurance: This type of insurance may pay to replace or repair your lost, stolen, or damaged equipment and tools that you regularly use for your mining equipment and supply business.

Anything valued at less than $1,500 is considered a tool and anything above that amount is considered equipment.

Commercial property insurance: Whether you rent or own your location for mining equipment and supply business, this type of insurance can provide financial coverage in the case of a fire that destroys or damages your business property and its contents.

Commercial property insurance also protects your place of business or office and its contents from damage or loss related to severe weather, theft, and vandalism.

You’ll need to do a total inventory of all your business property to determine how much commercial property insurance you will need.

This type of insurance typically includes flood insurance, but what if there’s a heavy rain and the sewers back up and your cleaning business office is flooded?

You should consider adding sewer backup or overland flood coverage extensions, which standard business insurance policies typically do not cover.

Business Interruption Insurance: Business interruption insurance supports you when your mining equipment and supply business can’t operate due to a covered loss. This type of insurance can be the difference between reopening and closing permanently.

Here are some examples that can force your mining equipment and supply business to shut down:

  • Damage to your equipment from fire or vandalism
  • A major reduction in revenue due to a client/supplier facing losses of their own
  • A disruption in your supply chain

Business interruption insurance can help with expenses such as:

  • Payroll
  • Rent
  • Utilities
  • Property taxes
  • Alarm monitoring
  • Relocation of your business

Ask your Western business insurance expert about how business interruption insurance can help your Prince George mining equipment and supply business.

Fleet Insurance: Commercial fleet insurance coverage is typically defined as any policy with 5 or more vehicles registered in a company name.

Factors used to determine your fleet rate:

  • Number of vehicles
  • Vehicle type
  • Driver experience
  • How the vehicles are stored when not in use
  • Alarm systems in the vehicles

Everyone who drives a company car must be listed on the company fleet insurance policy or a claim could be denied.

Employees may be required to have special operator’s licenses depending on the type of vehicle your company has.

Commercial Auto Insurance: If you have a business car that you use for your mining equipment and supply business, it won’t be covered by your personal car insurance policy.

You will need commercial coverage as part of mining insurance package.

Cyber Insurance: Your business may store client data and credit card transactions that you do with your clients as part of your mining equipment and supply business.

If your system is hacked by cyberthieves, you will have to pay out of your pocket for the cost of restoring your system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform clients affected by a breach.

Ask your Western business insurance expert how cyber insurance you need to protect your Prince George mining equipment and supply business.

Crime Insurance: This type of insurance will help protect your mining equipment and supply business against an employee’s criminal behavior, such as theft of money, securities, and property or forgery, or a third party’s criminal behavior. You will need to purchase an endorsement for this insurance in your mining equipment insurance package.

Excess Liability Insurance: It extends your underlying liability policy to give you additional coverage limits in the event of a major claim.

How much mining equipment do I need?

Discuss the right amount of coverage for your mining and supply company with your Western business insurance expert. It’s unlikely that all mining equipment and supply businesses would pay the same monthly or annually for their coverage.

The cost of your policy would likely depend on various factors, including:

  • What type of equipment do you sell
  • Your business’s size and location
  • Number of employees
  • Annual and projected revenues
  • Claims history

Ask your Western business insurance expert to help you get the right coverage at the right value for your type of mining equipment and supply business.

Western Insurance has licensed BUSINESS INSURANCE EXPERTS to get your mining equipment and supply business the right insurance package. Our experts are available now to help you navigate the business insurance journey to protect your mining equipment and supply business.

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