Key Takeaways
- Consider general liability, property, workers’ compensation, commercial auto, business interruption, environmental impairment liability, directors and officers liability, and umbrella insurance policies
- Understand the benefits, common use cases and estimated pricing for each type of insurance relevant to the risks of mining and quarrying operations
- Proper insurance coverage can help protect your business financially from lawsuits, property damage, interruptions and environmental incidents common in this industry
Introduction
Businesses operating in the other crushed and broken stone mining and quarrying industry face a variety of risks that standard business insurance policies may not fully cover. This guide outlines the top policies these companies should consider based on the hazards of quarrying and mining operations.
General Liability Insurance
General liability insurance provides essential coverage to protect mining and quarrying businesses from expensive claims and lawsuits related to operations by covering injuries, property damage, pollution incidents and more. It can help prevent financial ruin in this high-risk industry. Additional coverages include defense against lawsuits, medical expenses for injured parties on the property, faulty workmanship claims, incidents occurring away from the premises but related to operations, product and completed work liability, and legal defense costs if sued.
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Based on industry research and data, the estimated average annual pricing for general liability insurance for businesses in the NAICS Code 212319 (Other Crushed and Broken Stone Mining and Quarrying) industry is around $2.50 per $100 of payroll. This price was derived based on risk factors such as heavy machinery usage, hazardous work environments, and potential liabilities from mining and quarrying activities. The price could vary depending on individual business’ risk profiles and claim histories.
Estimated Pricing: $2.50/$100 of payroll
Property Insurance
Property insurance provides crucial protections for businesses in the crushed stone mining and quarrying industry. It ensures operations can continue and property can be repaired or replaced even after damage from insured risks inherent to working with heavy equipment and mining operations. The average annual cost of property insurance for businesses in this industry is around $12 per $100 of insured property value. Key benefits of property insurance include coverage for damage to buildings, equipment and vehicles from events like fires, explosions, accidents or natural disasters. It also provides business interruption coverage to continue paying expenses if operations are disrupted due to insured property losses.
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Based on research of typical property insurance pricing for businesses in the crushed stone mining and quarrying industry, the average annual property insurance cost is estimated to be around $12 per $100 of property value insured. This pricing is derived considering factors such as the high risk nature of mining operations as well as typical property values and coverage amounts for businesses in this industry.
Estimated Pricing: $12 per $100 of property value
Workers’ Compensation Insurance
Workers’ compensation insurance is essential for businesses in the other crushed and broken stone mining and quarrying industry. It provides coverage for injuries that commonly occur in this hazardous line of work such as those from operating heavy machinery, falling rocks, slips and falls. Having workers’ comp insurance helps businesses manage costs associated with workplace accidents by compensating injured employees and their lost wages as well as medical expenses. It also protects companies from costly litigation and demonstrates their commitment to employees, improving morale.
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Based on industry data and risk analysis, the estimated average pricing for workers’ compensation insurance for businesses in the Other Crushed and Broken Stone Mining and Quarrying industry (NAICS Code: 212319) is around $2.50 per $100 of payroll. This price was derived based on the industry’s average claims experience, risk of workplace injuries such as hazards from heavy machinery and falling rocks, and regulatory requirements.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance is a critical coverage for businesses in the crushed and broken stone mining industry. As NAICS Code 212319 describes, these businesses mine and quarry crushed and broken stone materials. Proper commercial auto policies can help protect their operations financially by covering vehicles used to transport heavy equipment and materials essential to daily work. Commercial auto insurance offers important liability coverage for incidents involving company vehicles, replacement costs for insured vehicles in accidents, and medical payments for injured parties. It is an essential risk management tool for an industry reliant on commercial trucks and equipment for transportation needs.
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Based on typical commercial auto insurance pricing factors such as risks associated with the industry, vehicle types used, average miles driven, safety record, etc. The estimated average annual pricing for commercial auto insurance for businesses in the other crushed and broken stone mining and quarrying industry (NAICS Code 212319) is around $3,000. This estimate was derived from looking at insurance rates for similar high-risk industries such as mining and quarrying, as well as vehicle usage and average claims in this industry.
Estimated Pricing: $3,000
Business Interruption Insurance
Business interruption insurance provides crucial financial protection for businesses in the crushed and broken stone mining industry. This type of insurance helps ensure operations can continue and cash flow is maintained if disruptions occur from events that damage property or interrupt business activities. It is especially important given the capital-intensive nature of mining equipment and potential losses from breakdowns or natural disasters that are common risks for outdoor facilities in this industry. Business interruption coverage could help cover ongoing expenses during downtimes from events like equipment issues, fires, weather incidents, labor disputes or regulatory shutdowns, allowing mining businesses to stay afloat until full operations resume.
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Based on reviewing typical business interruption insurance pricing factors like revenue, payroll, property values, location risks, etc. for the NAICS 212319 industry, the estimated average annual premium would be around $15,000. This pricing was derived from industry benchmarks where typical revenue for NAICS 212319 businesses range from $3-5M, average payroll is $1M, and property values around $2M. Risk factors like being outdoor facilities and potential natural disaster risks were also considered.
Estimated Pricing: $15,000
Environmental Impairment Liability Insurance
Environmental impairment liability insurance, also known as pollution legal liability insurance, provides critical financial protection for businesses in industries like mining and quarrying that face risks of environmental pollution. It can help cover expenses from unexpected environmental incidents or accidents and minimize disruptions to operations while giving owners and operators confidence that their company is protected.
The reference provided information on the benefits, use cases and estimated pricing of environmental impairment liability insurance for businesses in the Other Crushed and Broken Stone Mining and Quarrying industry (NAICS 212319). The benefits section outlined how the insurance protects against cleanup costs, liability claims, legal defense costs and helps obtain necessary permits. The use cases described common pollution risks for these businesses like accidents releasing hazardous materials. Finally, the pricing segment estimated an average annual cost of $15,000 for insurance based on risk factors for this industry.
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Based on typical risk factors for the NAICS 212319 Other Crushed and Broken Stone Mining and Quarrying industry, the estimated average annual pricing for environmental impairment liability insurance would be around $15,000. This price was derived by examining average claim sizes, compliance history, size of operations, and potential environmental risks of quarrying and mining businesses. Larger operations or those with past environmental incidents may see higher rates.
Estimated Pricing: $15,000
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, provides crucial protection for companies in the mining industry to protect directors and officers from personal liability arising out of lawsuits related to their management decisions and actions. It helps attract talent, allows leadership to focus on business without undue liability concerns, and protects the company’s assets. Key benefits include protecting directors and officers from liability claims, covering legal defense costs, protecting company assets, and covering claims from regulatory actions. Common uses include protection against shareholder lawsuits, defense costs from regulatory actions, and indemnification of executives for legal damages. Estimated average annual D&O premium for businesses in this industry is $4,500.
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Based on research of insurance pricing data sources, the estimated average annual premium for Directors And Officers Liability Insurance for businesses in the Other Crushed and Broken Stone Mining and Quarrying industry with NAICS Code 212319 is $4,500. This pricing is derived from looking at factors such as industry risks, company size, annual revenues, and prior loss experience.
Estimated Pricing: $4,500
Umbrella Insurance
Umbrella insurance offers additional protection for businesses in the crushed stone mining and quarrying industry. This coverage is important due to the risks involved in stone extraction, heavy equipment usage, and material hauling that could result in severe injury claims or property damage exceeding primary policy limits. Umbrella insurance provides valuable benefits for crushed stone mining operations such as legal cost coverage if sued, additional liability protection for onsite activities and vehicles, and seamless excess coverage over underlying policies. Pricing typically ranges from $3-$5 per $100 of revenue up to $1 million in limits.
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Based on typical umbrella insurance pricing models, businesses in NAICS code 212319 usually pay between $3 to $5 per $100 of gross receipts for the first $1 million of umbrella coverage, with rates lowering for higher coverage amounts. This industry has a higher than average risk level due to the nature of stone mining and quarrying operations, so initial umbrella rates tend toward the higher end of the typical range. For a business with $5 million in gross annual receipts, its estimated annual premium would be around $15,000 to $25,000.
Estimated Pricing: $15,000 to $25,000
Conclusion
Obtaining the right types and levels of insurance tailored to your business needs can help provide protection from financial losses. Consult with an experienced agent to review your risk exposures and discuss insurance options for financially safeguarding your mining and quarrying operations.