Why Saskatoon Mining Businesses Need Customized Insurance

Insurance for Saskatoon Mining Companies

October 17, 2024 / 5 mins read

All mining companies are different and they have their own risk profiles. Business insurance for Saskatoon mining companies needs to address their specific needs and liability risks.

Whether your Saskatoon mining company has an operational mine, prospecting and exploration projects, or is in the mine services and supplies sector, you will need customized business liability insurance.

Are you located in the Saskatoon region or elsewhere in Saskatchewan? A Western Financial Group business insurance broker will get you commercial coverage that uniquely protects your mining business.

Western is a trusted, national insurance brokerage that has partnered with Canada’s top insurance companies to provide commercial insurance. We work with our insurance partners to find the best coverage for your needs.

We make the process easy by getting insurance quotes for you and giving you policy coverage options that you can choose for your Saskatoon mining company’s specific needs.

Saskatoon/Saskatchewan mining sector

The Saskatoon region is home to some of Canada’s largest mining companies. The province of Saskatchewan has over 20 operating mines, producing potash, uranium, coal, gold, salt, meta-kaolin, silica sand, sodium sulphate, clay, bentonite, and rare earth metals.

What kinds of mining companies need customized insurance?

  • Operating mines both surface and underground
  • Mine services and suppliers
  • Prospecting and exploration projects

Liability insurance is an essential part of your mining and mining services insurance package. Here are the liability coverages that you need to help protect your Saskatoon mining company from lawsuits.

Professional liability insurance helps protect Saskatoon mining businesses from claims of negligence when they are performing their duties. You will also hear it called errors and omissions insurance.

Errors and omissions insurance can protect against claims alleging financial loss due to a service you provided, as well as lawsuits alleging negligence, misconduct, and failure to deliver services as promised.

For example, in the case of a negligence claim, for example, a Saskatoon mining company’s E&O insurance would pay for some or all of the claim costs.

Note: It’s important to understand the specifics of your professional liability coverage to ensure adequate protection for your Saskatoon mining company or operation.

Commercial general liability insurance

This is necessary liability insurance for Saskatoon mining businesses. Without commercial general liability insurance, you will pay costs related to third-party (customer/supplier) injuries or damage to their property out of your own pocket.

If you were sued, commercial general liability insurance would cover the legal costs to defend the claim against your Saskatoon mining company, as well as costs to cover damages to compensate third parties whether you win or lose your case.

What kind of risks does commercial general liability insurance cover?

  • Injury to a third party who is not your employee
  • Damage to someone’s property
  • Damage to rented property
  • Medical bills if someone is injured
  • Legal costs and settlement costs of liability lawsuits filed against you
  • Liability lawsuits related to slander and libel

Should a client visiting your Saskatoon mining business slip, fall, and get injured, CGL insurance would help cover legal fees and medical costs.

Cyber liability insurance

Do you keep sensitive financial information belonging to your clients? Cyber liability insurance will help protect your Saskatoon mining company financially should there be a cyber-attack.

Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages.

Commercial umbrella insurance

You may want to consider commercial umbrella insurance for your Saskatoon mining company. Commercial umbrella insurance, also known as just umbrella insurance, addresses liability coverage gaps. It’s used when the primary liability coverage, for example on your commercial general liability insurance, has reached its coverage limit.

It’s important to note that umbrella insurance applies only to expenses related to liability such as legal fees, court fees, and legal settlements.

Directors and officers liability insurance

Directors and officers insurance provides financial coverage for legal expenses to help defend a board member or officer of your Saskatoon mining company against claims. It typically covers misleading statements, reporting issues, and inaccurate disclosure.

This type of insurance also covers:

  • Negligent acts and allegations of misrepresentation
  • Breach of legal or fiduciary duties
  • Decisions that result in adverse financial consequences for shareholders
  • Wrongful dismissal and employee discrimination claims
  • Failure to adhere to federal and provincial laws and regulations

Product liability insurance

Product liability insurance covers claims arising from defects or problems with mining products that you manufacture. It protects your Saskatoon mining company against third-party legal liability arising from physical damage or bodily injury as a result of an alleged product failure or defect.

It is important to have this type of insurance in place because it can be expensive to defend against a product liability lawsuit.

What product liability insurance covers:

  • Design defects: There’s something wrong with the product’s design.
  • Manufacturing defects: Something went wrong during manufacturing.
  • Marketing missteps: A mistake in marketing materials, such as improper labels.
  • Insufficient warnings: The product doesn’t include sufficient warning/information about potential harm.

Pollution liability insurance

It’s not uncommon for Saskatoon mining companies to be exposed to liabilities related to pollution. Pollution liability insurance overs third-party bodily injury and third-party property damage as well as environmental damage resulting from your construction work, including clean-up costs, civil fines and assessments, and emergency response expenses.

Non-owned aviation liability

This type of insurance provides contingent liability coverage in the event that the charter's aircraft's insurance is inadequate in the event of an accident.

What other insurance do Saskatoon mining and mining services companies need?

Commercial property insurance

Commercial property insurance provides financial support to replace or cover repairs to your Saskatoon mining and mining services company if it is damaged by a flood, fire, or severe weather. It also covers vandalism and theft.

Commercial property insurance also covers the firm’s contents such as computers, furniture, tools, equipment, and inventory. Commercial property coverage also extends to protect others’ property that is under your care.

Legal expense insurance

Legal expense insurance provides access to general legal advice with a lawyer, as well as coverage for legal expenses resulting from the legal process. This type of insurance policy may cover legal costs associated with defending your legal rights relating to employment disputes, debt recovery, contract disputes, or tax protection.

Business interruption insurance

This type of insurance supports you when your Saskatoon mining firm or operations can’t operate due to a covered loss.

There are a number of losses that can force your mining business to shut down. Some examples are:

  • 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 these expenses:

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

Commercial auto insurance

If you are using your car for your ocean tech job in the mining industry, it won’t be covered by your personal car insurance policy. You will need commercial coverage as part of your insurance package.

Course of construction insurance

It’s also called builders risk insurance. Course of construction insurance provides coverage for a building, job site, and construction materials during the construction phase, including renovation and repair.

Course of construction insurance usually begins before the first materials arrive on the job site and ends once the project is complete.

Surety bonds

Your Saskatoon mining business may need a surety bond.

Surety bonds involve a three-party agreement between the principal (your mining business), the obligee (the party that requires the bond such as a government, company, institution), and the surety company (such as an insurance brokerage).

Surety bonds are required in certain industries or for specific projects to ensure completion, compliance, or payment.

A surety bond will pay your customer if your Saskatoon mining business does not complete a job or obligated task. If work is not completed per agreement, a client can claim the bond and receive compensation for their loss up to the bond’s limit. Once claimed, the paid-out losses are still recoverable from your business.

Marine cargo insurance

This type of insurance covers all risks of physical loss or damage to your mining company’s property and equipment in the course of a marine and/or air transit.

Does your Saskatchewan mining company do international business? Learn about cross border insurance.

How much does Saskatoon mining insurance cost?

The following factors are usually considered when determining the cost of your business insurance: Location(s), services provided, number of employees, years of experience, annual revenue, and any past claims.

What do I do if I have a claim against my Saskatoon mining business?

  • Contact your broker immediately after any business-related mishap. Waiting to file a claim can confuse insurers about the severity of the damages to your business.
  • Know your policy so that when you contact your broker you are familiar with what will be covered or not.
  • Document the damage. Take photos right away and write down what happened.
  • Do not throw away damaged goods after taking photos. Keep the physical evidence so that your adjustor can see it.
  • Do not invite lawsuits. Don’t say anything that could be used against you, especially if you aren’t sure what happened.
  • Be honest about what your damaged property is worth. Damaged commercial property is generally valued according to its actual cash value or replacement value.

Here’s an insurance checklist:

  • Do you have the best business insurance rate that suits your work?
  • Do you have the right amount for your deductible and regularly review it to make sure it’s the right amount for you?
  • Are you or your employees using personal vehicles for work?

Western Financial Group has licensed BUSINESS INSURANCE EXPERTS to get you the right insurance coverage for your Saskatoon mining business. Our experts are available now to help you navigate the business insurance journey to protect your Saskatoon business.

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