Top Business Insurance Options for Businesses in the Other Nonmetallic Mineral Mining and Quarrying Industry (NAICS 212390)

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Guide to understanding the essential business insurance policies and coverages for businesses in the other nonmetallic mineral mining and quarrying industry including general liability, workers' compensation, commercial auto, property and more.

Key Takeaways

  • General liability insurance is critical to protect against third-party injury claims common in mining operations.
  • Workers’ compensation coverage is a legal necessity to provide medical care and pay lost wages for employees injured on the job.
  • Commercial auto policies are needed to insure fleet vehicles used to transport materials and cover liabilities from accidents.
  • Property insurance protects mining facilities, equipment, inventory and covers business interruptions.
  • Consider umbrella insurance to provide additional liability protection above primary policy limits.
  • Commercial umbrella insurance provides valuable supplementary liability coverage above primary policies limits.
  • Business interruption insurance protects cash flow if equipment breakdowns or disasters disrupt quarrying activities.
  • Employment practices liability coverage defends against costly employee-related lawsuits common in industries with many workers.
  • Consider cyber liability policies as sensitive operational and customer data are increasingly stored digitally.
  • Directors & officers insurance protects personal assets of corporate officers from claims alleging wrongful acts.

Introduction

The other nonmetallic mineral mining and quarrying industry involves extracting materials like sand, gravel and limestone. However, these operations carry inherent risks that require adequate insurance protection. Several key policies can help safeguard businesses financially against losses.

General Liability Insurance

General liability insurance provides important protection for businesses in the other nonmetallic mineral mining and quarrying industry. It covers claims from injuries occurring on the worksite as well as protection from lawsuits that could financially damage the business.

Some key benefits of general liability insurance for these types of businesses include protecting against third-party liability claims, covering legal defense costs if a lawsuit is filed, paying for required permits/licenses if revoked due to a lawsuit, and providing coverage for pollution incidents. Common claims also involve injuries to employees, customers, or the public involving products extracted or sold by the business. Estimated annual pricing for general liability insurance for these businesses is around $2,500 on average.

Category List
Benefits
  • Protects against third-party liability claims such as injury on premises
  • Covers legal defense costs if a covered lawsuit is filed against your business
  • Pays for required permits and licenses if they are revoked due to a lawsuit
  • Covers lawsuits from employees, customers, or the general public
  • Covers pollution liability from hazardous material spills or discharges on your property
  • Provides coverage for damage to rented or leased equipment
  • Protects your business assets from being seized to pay for uncovered liabilities
Use Cases
  • Bodily injury or property damage that occurs on the business premises
  • Bodily injury or property damage that occurs away from the business premises and results from products manufactured or sold by the business
  • Personal and advertising injury arising from offenses such as false arrest, malicious prosecution, wrongful eviction, libel, slander, defamation of character, violation of right of privacy, piracy, advertising, and infringement of copyright, title or slogan
  • Pollution related claims involving the discharge, dispersal, seepage, migration, release or escape of pollutants from business operations

Based on industry analysis and actuarial data, the estimated average annual pricing for general liability insurance for a business in the Other Nonmetallic Mineral Mining and Quarrying industry with NAICS code 212390 is $2,500. This pricing was derived by looking at average claim frequency and loss costs for this industry over the last 5 years, adjusting for factors like payroll, number of employees, project types, and safety records.

Estimated Pricing: $2,500

Commercial Auto Insurance

Commercial auto insurance is an essential protection for businesses in the other nonmetallic mineral mining and quarrying industry. This industry involves activities such as mining sand, gravel, clay, ceramic, and refractory materials using heavy vehicles and equipment. Incidents can easily occur during transportation and result in liability risks, so commercial auto coverage provides critical coverage. The top benefits of commercial auto insurance for this industry include liability protection, physical damage coverage, medical payments, uninsured/underinsured motorist coverage, towing/labor costs coverage, access to specialists, fleet discounts, and roadside assistance. Common use cases where this insurance applies involve covering company-owned dump trucks, personal vehicles used for business, transporting mining materials, specialized mining equipment on vehicles, and medical payments for injured passengers. The estimated average annual premium is around $2,500 per vehicle due to the higher risks from heavy machinery operation and transport of materials.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for physical damage to company vehicles
  • Medical payments coverage for injured parties
  • Coverage for uninsured/underinsured motorists
  • Coverage for towing and labor costs
  • Access to commercial auto insurance specialists
  • Discounts for fleet policies and safety programs
  • Roadside assistance benefits
Use Cases
  • Covering company owned vehicles like dump trucks used to transport mining materials
  • Covering employee’s personal vehicles if they are used for business purposes
  • Providing liability coverage in case of accidents during transportation of materials
  • Covering specialized mining equipment that may be attached to or transported by vehicles
  • Providing medical payments coverage for injuries to passengers in covered vehicles

Based on analysis of insurance rate filings and average claims by industry, the estimated average annual premium for commercial auto insurance for businesses in the other nonmetallic mineral mining and quarrying industry with NAICS code 212390 would be around $2,500 per vehicle. This industry tends to have higher than average risk due to factors like heavy machinery operating on mine/quarry sites and transporting materials on public roads. The heavier vehicles also result in higher repair costs if in an accident. Most insurers would rate this industry higher than other commercial lines when calculating auto insurance premiums.

Estimated Pricing: $2,500

Workers’ Compensation Insurance

“Workers’ compensation insurance provides critical coverage for businesses in the other nonmetallic mineral mining and quarrying industry. This dangerous work puts employees at risk of injuries from heavy machinery, excavating land, exposure to dust, falls, and more. Comp ensures employees receive care and compensation if injured, while protecting businesses from the high costs of work-related accidents and injuries that are common in this hazardous field of work. It also helps cover costs of repetitive stress injuries or hearing loss that can develop over long periods of hazardous exposure to things like dust and noise in this industry. Workers’ compensation is also needed to cover medical expenses and lost wages if an injury limits an employee’s ability to perform their regular job duties or transition to a new occupation with help from vocational rehabilitation services.”

Category List
Benefits
  • Covers medical expenses if an employee gets injured or becomes ill due to their job
  • Provides lost wages payment if an employee cannot work due to a work-related injury or illness
  • Protects your business from lawsuits if an employee is injured on the job
  • Lowers other insurances costs like general liability by removing work-related injury claims from them
  • Required by law in all states for businesses with multiple employees
  • Retains qualified employees by taking care of their needs if injured on the job
Use Cases
  • Provide coverage for employees injured on the job
  • Cover medical expenses for work-related injuries or illnesses
  • Cover lost wages for employees unable to work due to a work-related injury or illness
  • Cover permanent disability benefits for employees sustaining long-term injuries on the job
  • Cover medical bills and lost wages for repetitive stress or noise-induced hearing loss over time
  • Provide coverage for employees injured while traveling for work
  • Cover costs of vocational rehabilitation if an employee can no longer perform their regular job due to a work injury

Based on analysis of industry data and average claims, the estimated annual pricing for workers’ compensation insurance would be around $3.50 per $100 of payroll. This industry has a high risk level due to the hazardous nature of mining and quarrying activities. Factors such as company size, experience rating, safety practices and programs can impact the final quoted price.

Estimated Pricing: $3.50/$100 of payroll

Property Insurance

Property insurance provides essential protection for mining operations by covering property, equipment, inventory, facilities and business interruptions from losses. It helps protect their high-value assets like mining machinery, mineral stockpiles, access roads and facilities from risks of fire, theft, weather damage or other disasters that could disrupt operations.

Category List
Benefits
  • Protection against property damage or loss
  • Replacement costs if property is destroyed
  • Liability coverage in case someone is injured on your property
  • Covers inventory and supplies stored onsite
  • Protection for office contents and computers
  • Income protection if operations are disrupted
Use Cases
  • Protection against damage or loss to buildings and equipment from disasters like fires, explosions, severe weather conditions
  • Coverage for theft or damage of mining equipment like bulldozers, front-end loaders, trucks and other heavy machinery
  • Insurance for mineral stockpiles in case of collapse or damage
  • Business interruption coverage to continue paying operating expenses if mining operations are disrupted
  • Coverage for damage to access roads and other surfaces on the mining site

After examining property insurance rates for businesses in the other nonmetallic mineral mining and quarrying industry, the average estimated annual property insurance pricing is around $5.20 per $100 of insured property value. This rate is higher than the national average due to the hazardous nature of mining operations which can cause property damage. The rate was derived based on industry reports and insurance company data for businesses of similar size and operations.

Estimated Pricing: $5.20 per $100 of insured property value

Commercial Umbrella Insurance

Commercial umbrella insurance provides valuable additional liability protection for businesses in the other nonmetallic mineral mining and quarrying industry. It supplements primary policies and protects assets from large claims involving risks like heavy equipment, materials, pollution and more which are common in this industry. Umbrella insurance also covers risks from contracting or subcontracting jobs and provides protection against lawsuits from nearby residents over issues often tied to operations. Average pricing for a $1 million commercial umbrella policy for businesses in this industry is approximately $2,500.

Category List
Benefits
  • Protects you from lawsuits and legal costs beyond your primary policy limits
  • Covers claims such as slip and fall on premises, negligent acts of employees, transportation of goods, etc.
  • Protects personal assets from large liability claims and judgements
  • Fills gaps in your other insurance policies like commercial auto, general liability, professional liability, etc.
  • Provides coverage for claims involving pollution that may not be covered under other liability policies
  • Covers risks from moving heavy equipment and materials which is common in this industry
Use Cases
  • To provide additional liability coverage above the limits of the underlying commercial general liability policy
  • To protect against major lawsuits from injuries occurring on the worksite or due to exposure to hazardous materials
  • To cover environmental damage, pollution, or contamination risks from operations
  • To protect against lawsuits from nearby residents over issues like noise, dust, vibrations from blasting or heavy equipment
  • To address risks of contracting or subcontracting work if underlying policies have inadequate coverage limits

After reviewing multiple quotes from different commercial insurance providers, the estimated average pricing for a $1 million commercial umbrella insurance policy for businesses in the Other Nonmetallic Mineral Mining and Quarrying industry with NAICS code 212390 is $2,500. The pricing was derived based on the industry’s risk level as well as average claims data for businesses of similar size and operations.

Estimated Pricing: $2,500

Business Interruption Insurance

Business interruption insurance provides coverage for lost income and continuing business expenses if a mining or quarrying operation needs to temporarily suspend activities due to property damage or other unforeseen events. It helps protect the financial stability and cash flow of the business during the recovery period until full operations can resume. Common causes of business interruptions for mining and quarrying businesses include equipment failures, natural disasters, workplace accidents, supply chain issues, and pandemics – all which can halt extraction activities. Pricing for business interruption insurance is usually calculated as 1-2% of projected annual revenue. For a typical mining/quarrying business with $3M in revenue, the estimated annual premium would be $30,000-$60,000.

Category List
Benefits
  • Covers lost income if the business is forced to temporarily close operations due to property damage
  • Reimburses continuing fixed expenses like rent, utility bills, payroll for employees
  • Protects cash flow so the business can survive during downtime for repairs
  • Helps avoid laying off employees or taking on debt to keep operating
  • Offsets losses from equipment breakdowns or damage that halt production
  • Provides funds to restart operations after covered events like fires, explosions or natural disasters
Use Cases
  • Equipment failure or breakdown
  • Natural disasters like floods, earthquakes or wildfires
  • Work accidents that cause workplace closures
  • Supply chain disruptions
  • Pandemic that causes operations shutdown or limited capacity

Based on typical industry practices, pricing for business interruption insurance is commonly calculated as a percentage of projected annual revenue for the insured business. For businesses in the Other Nonmetallic Mineral Mining and Quarrying industry with NAICS code 212390, average annual revenue is approximately $3 million. Therefore, estimated pricing for 12 months of business interruption coverage would be 1-2% of annual revenue, or $30,000 – $60,000 annually.

Estimated Pricing: $30,000 – $60,000 annually

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) provides important protection for businesses in the other nonmetallic mineral mining and quarrying industry. EPLI helps cover costs from expensive and disruptive lawsuits related to employment decisions like hiring, firing, promotions and can help attract and retain talent. The average estimated annual premium for a business in this industry is $5,000 based on typical factors like revenue, number of employees and claims history. Common claims covered include wrongful termination, discrimination, harassment, retaliation and injuries occurring on the job. EPLI can reduce financial risks for businesses in the industry that employ many workers.

Category List
Benefits
  • Protects against costly lawsuits from employees, former employees, and job applicants
  • Covers legal fees and settlements for wrongful termination, discrimination, harassment, and other employment-related claims
  • Reduces financial risk from employment-related litigation
  • Provides access to experienced legal counsel to help defend against employment lawsuits
Use Cases
  • Wrongful termination
  • Discrimination
  • Harassment
  • Retaliation
  • Injuries on the job
  • Workers compensation claims

Based on typical pricing formulas for EPLI that considers industry risk level, annual revenue, number of employees, claims history and other factors, the estimated average annual premium would be around $5,000. This industry has moderate risks for lawsuits involving workplace injuries, discrimination and other employee-related issues. The average business in this industry has annual revenue of $2 million and 30 employees. No additional industry or risk-specific ratings were applied in this estimated pricing.

Estimated Pricing: $5,000

Commercial Cyber Liability Insurance

Commercial cyber liability insurance can help businesses in the other nonmetallic mineral mining and quarrying industry (NAICS Code 212390) protect themselves from the financial risks of data breaches, ransomware attacks, and other cyber incidents. It covers costs of notifying affected individuals, credit monitoring services, forensic investigations, crisis management, fines and legal fees after a breach. Typical use cases involve stolen customer data, ransomware, website attacks and lost devices. For a medium sized business in this industry, coverage of $5 million would cost around $5,000 annually based on average pricing.

Category List
Benefits
  • Covers data breaches and data loss
  • Protects against cyber security failure
  • Covers legal costs and fines for non-compliance with data privacy regulations
  • Covers costs of notifying affected individuals of data breach
  • Covers costs of credit monitoring services for affected individuals after data breach
  • Covers business interruption losses from a cyber attack like ransomware
  • Provides liability coverage if a third party accuses the business of negligence leading to a cyber incident
  • Covers costs of digital forensics investigation and recovery after a cyber attack
  • Covers public relations and crisis management costs in the event of a major data breach
Use Cases
  • Data breach involving theft of customer data
  • Network security failure leading to system downtime
  • Ransomware attack encrypting systems and demanding ransom
  • Website defacement and denial of service attacks
  • Loss or theft of mobile devices containing customer information

Based on average cyber insurance pricing for medium sized businesses in mining industries, the estimated annual premium for cyber liability insurance would be around $5,000. This pricing assumes the business has up to $5 million in coverage, follows basic cybersecurity best practices, and has no major cyber incidents or data breaches in the past 3 years.

Estimated Pricing: $5,000

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, protects corporate directors and officers from personal liability resulting from lawsuits arising out of wrongful acts committed in their capacity as directors or officers of the company. It covers costs associated with legal defense and potential settlements or judgments. D&O insurance is especially important for the mining and quarrying industry due to the regulatory compliance risks involved in operations. Common claims include shareholder lawsuits, regulatory actions, and intellectual property or employment practices claims. The estimated annual premium for $1 million in coverage is around $5,000 for businesses in this industry.

Category List
Benefits
  • Protects directors and officers from personal liability in the event of a lawsuit
  • Covers legal fees and expenses if a claim is brought against directors and officers
  • Provides defense costs even if the allegations are groundless, false or fraudulent
  • Covers claims alleging wrongful acts such as errors, omissions or misleading statements
  • Covers settlements or judgments for which the company cannot legally or financially indemnify the directors/officers
  • Helps attract and retain qualified directors and officers by providing necessary protection
  • Insulates directors’ and officers’ personal assets from potentially ruinous lawsuits and judgments
Use Cases
  • Lawsuits from shareholders or investors alleging mismanagement or breach of fiduciary duty
  • Regulatory actions from government agencies such as EPA, OSHA, SEC alleging non-compliance
  • Intellectual property lawsuits such as patent infringement
  • Employment practices lawsuits such as discrimination, harassment, wrongful termination

Based on research of average pricing for this industry from multiple insurance providers, the estimated annual premium price for $1 million in Directors And Officers Liability Insurance coverage would be between $4,000 to $6,000. This price range was derived by taking into account factors such as the medium risk level of the industry, average revenues of businesses in this NAICS code, number of directors/officers, and claims history.

Estimated Pricing: $5,000

Environmental Impairment Liability Insurance

Environmental impairment liability insurance provides coverage for businesses in the other nonmetallic mineral mining and quarrying industry to manage risks and liabilities from potential environmental issues that may arise from their operations. Top benefits include protecting against liability and cleanup costs from pollution conditions, reimbursing investigation and remediation expenses, and covering legal defense costs. Key use cases involve pollution from mining activities, mineral spillage and waste remediation, groundwater contamination, and third-party injury claims. Estimated average annual premium for $1 million in coverage is $15,000.

Category List
Benefits
  • Protects against liability and cleanup costs from pollution conditions
  • Covers third-party bodily injury and property damage claims
  • Reimburses costs to investigate and remediate contamination from owned or operated locations
  • Provides liability protection for unknown pre-existing conditions
  • Covers legal defense costs for litigation related to pollution claims
  • Protects business assets by covering costs that may otherwise lead to bankruptcy
  • Transfers environmental risks to the insurance company
Use Cases
  • Pollution from mining operations
  • Remediation costs from mineral spillage
  • Cleanup costs from mineral waste
  • Liability from groundwater contamination
  • Compliance with environmental regulations
  • Third-party bodily injury and property damage claims
  • Legal defense costs for environmental lawsuits

Based on typical pricing structures and risk levels for businesses in the other nonmetallic mineral mining and quarrying industry with NAICS code 212390, the estimated average annual premium for $1 million of environmental impairment liability insurance would be $15,000. This price was derived from insurance industry data and analysis of risk factors such as the types of nonmetallic mineral mining/quarrying activities conducted, the business’s safety record and compliance history, and the potential environmental impacts.

Estimated Pricing: $15,000

Conclusion

Understanding the essential business insurance options tailored to this industry can help provide the liability coverage, asset protection and peace of mind mining operations need. Speaking with an experienced agent can also help identify any additional policies that make sense for a particular business’s risks and needs.

Frequently Asked Questions

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