Mining Insurance Australia

Mining is a high risk industry, however you are in good hands! Coverscope specialises in the high risk mining sector.

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Mining Liability Insurance

Mining operations are inherently risky, involving heavy machinery, hazardous materials, and challenging working conditions. For mining contractors and mining companies in Australia, managing these risks is paramount to ensure the safety of workers and protect against potential financial losses. One vital aspect of risk management in the mining sector is securing appropriate insurance coverage.

Who Needs Mining Insurance

Mining Companies: Large mining companies that own and operate mining sites require comprehensive insurance coverage to protect their assets, employees, and liabilities associated with mining activities.


Mining Contractors: Contractors working in the mining industry, including drilling companies, blasting contractors, heavy equipment operators, and maintenance service providers, need insurance to safeguard against risks specific to their contracted work.

Risks Involved with Mining, Above Ground and Below Ground

Above-Ground Risks

  • Machinery and Equipment Accidents: Mining operations use heavy machinery and equipment, which can result in accidents, injuries, and equipment damage.
  • Fires and Explosions: The presence of flammable substances and combustible materials increases the risk of fires and explosions, which can cause extensive property damage and injuries.
  • Transportation Accidents: Moving large amounts of materials, such as minerals or ores, involves transportation by trucks, trains, or ships, which can lead to accidents and spills.

Below-Ground Risks

  • Cave-ins and Collapses: Underground mining involves the risk of cave-ins or collapses, which can cause severe injuries or fatalities to workers and damage mining infrastructure.
  • Gas and Dust Explosions: Accumulation of flammable gases or combustible dust in confined spaces underground can lead to explosions and fires.
  • Health Hazards: Exposure to harmful substances, such as silica dust or asbestos, can cause long-term health issues for miners, including respiratory diseases and occupational cancers.
  • Floods and Inundations: Underground mining can encounter water-related challenges, including flooding or inundations, which can damage equipment, halt operations, and endanger workers.


Public Liability Insurance

This insurance covers the mining company against claims for third-party bodily injury or property damage that occurs as a result of their mining operations.

Environmental Liability Insurance

This insurance helps protect your mining company from potential legal and financial liabilities arising from environmental damage caused by your operations.

Workers’ Compensation Insurance

Workers’ compensation insurance is mandatory in Australia for businesses that employ workers. It provides coverage for work-related injuries or illnesses suffered by employees. This insurance ensures that employees receive compensation for medical expenses, lost wages, and rehabilitation costs, while protecting the business from potential legal liabilities.

Cyber Insurance

With increasing digitisation and reliance on technology, cyber insurance has become vital to protect mining companies from data breaches, cyberattacks, and related liabilities.

Business Interruption Insurance

Mining operations can be susceptible to interruptions due to unforeseen events like accidents, machinery breakdowns, or natural disasters. Business interruption insurance provides coverage for lost income and extra expenses during these disruptions.

Are subcontractors required to have their own insurance, even if covered under the primary contractor’s insurance?

Yes, it is generally advised that any subcontractor who operates their own business should have their own insurance coverage. While the primary contractor’s insurance policy may provide coverage in some cases, it is important for subcontractors to have their own protection in the event that they are solely liable for damages or other losses. It is worth noting that without a subrogation waiver or hold harmless agreement in place, the primary contractor’s insurance policy may seek to recover costs from the subcontractor.

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Mining Insurance Quotes

Coverscope specialises in mining insurance for mining companies and contractors across Australia. With our expertise in the mining industry, we offer tailored insurance solutions to address the specific risks faced by mining operations.

Coverscope’s services include comprehensive insurance coverage options designed to protect mining companies and contractors against a range of risks associated with mining activities. Get in touch with our team today to discuss your insurance requirements.

What Insurance Policies Are Essential For Mining Operations In Australia?

Mining operations in Australia typically require several types of insurance to comply with industry standards and regulations. Essential policies include public liability insurance, professional indemnity insurance, and plant and equipment insurance. These coverages protect against various risks, including injuries, property damage, and professional errors.

Why Is Specialised Mining Insurance Necessary?

Standard public liability policies may not offer coverage for mining-specific risks. Specialised mining insurance provides targeted protection for incidents that occur on mine sites, which are often excluded in general policies.

How Do I Get The Right Mining Insurance Coverage?

Coverscope tailor mining insurance by taking into consideration the specifics of your mining operation, such as whether your activities are above or underground, the use of explosives, and the scale of your operations. With these factors we can determine the appropriate level of coverage for your business’s specific needs.

What Will Be The Cost Of A Mining Insurance Policy?

Several factors can affect the cost of mining insurance policies, including the type of mining operation, the geographic location, the size and scale of the operation, the types of minerals extracted, and the specific risks involved, such as the use of explosives or underground mining. You can organise a quote by calling the experts at Coverscope or using the quick quote form at the top of this page.

What usually isn’t covered?

Exclusions, the excess you need to pay and limits of liability can vary greatly depending on your insurer.

Public & Products Liability Policies generally won’t include cover for:


Cost of rectifying faulty workmanship


Damage to your own product


Claims by employees


Claims arising out of the use of a registered motor vehicle


Claims related to asbestos

Case Study

During a routine mining operation, a landslide occurred, causing extensive damage to equipment and infrastructure. Additionally, several employees sustained injuries, requiring costly medical treatment.

The mining company faced significant financial strain due to the expenses related to repairing equipment, rebuilding infrastructure, and compensating injured workers. Without insurance coverage, the company’s operations were at risk of halting.