MINING INSURANCE CASE STUDY
Solo Mine-Maintenance Boilermaker, $20M Public Liability and Tools Package
A sole-director boilermaker building a mine-maintenance business needed $20 million public liability and tools cover at around $100,000 revenue. Seven insurers declined the occupation across two quoting platforms before terms were secured.
THE SITUATION
A sole-director boilermaker came to Tank Insurance while building a mine-maintenance business alongside other work. Revenue was around $100,000, there were no subcontractors, and the plan was to grow it into a full-time mine-maintenance and fabrication business.
The business wanted $20 million public liability, the limit the client expected mine-site contracts to require. The business also needed tools of trade cover, starting at a modest sum insured and stepping up once a fixed canopy was fitted to the work vehicle, and commercial motor cover for a four-wheel-drive ute carrying the tools between jobs.
The existing arrangement was a personal motor policy on the ute. Nothing covered the liability or the tools, and none of it was cover a site would accept.
OUR APPROACH
We treated the three covers as one program rather than three separate purchases, and put the liability and tools risk to market through two broker quoting platforms at the same time.
- The occupation was described precisely: boilermaking and mine-maintenance work as a sole director, with revenue, work locations and the absence of subcontractors all stated up front.
- Seven insurers declined the occupation across the two platforms. Where a reason was given, it was business activities or an occupation outside that insurer's guidelines.
- One insurer offered terms for $20 million public liability with tools of trade cover included, and we placed it there.
- Commercial motor was quoted separately on the ute, comparing agreed value and market value bases across several insurers, with the client's driver profile disclosed up front.
The tools sum insured was set at the short-term figure with the intention of increasing it once the secure canopy was installed, so the client wasn't paying for cover on tools that weren't yet stored securely.
THE CHALLENGES
"Boilermaker" plus "mine" can fall outside a business pack insurer's occupation guidelines before the submission is read. In this placement seven insurers declined, and where a reason was given it was about category, not this client: business activities outside guidelines, occupation declined, outside appetite.
The second challenge was proportion. At $100,000 revenue the premium had to make sense for a business still getting established, and the commercial motor pricing varied widely depending on whether the ute was insured for agreed or market value and between insurers once the driver profile was disclosed.
THE OUTCOME
$20 million public liability with tools of trade cover was placed with Allianz at a premium of approximately $1,700 per year.
Final Solution: $20 million public liability and tools of trade package at around $1,700 a year, with commercial motor on the work ute placed alongside at around $2,400 a year on a market value basis.
The client now holds the liability limit it expected mine-site contracts to require, tools cover that can step up as the business grows, and motor cover that reflects the ute's business use rather than a personal policy.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our mine operations and maintenance insurance guide and the mining insurance hub.
MINING SUBCONTRACTOR QUESTIONS
What this placement answers for other mining subcontractors
How much is $20 million public liability for a mining subcontractor?
Why do insurers decline mining subcontractors for public liability?
Does $20 million public liability cover my tools and my ute?
What does a principal contractor require before a boilermaker can work on a mine site?
Can I start with a small tools sum insured and increase it later?
MINING INSURANCE HUB
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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