An essential part of any Insurance program is the effective use of Risk Management and loss control strategies to mitigate exposure to loss and improve the risk profile of the client. For mining companies, the proper implementation of these strategies can help save them large costs in the long term.
The following are standard clauses for Contractors suggested by Axis. These suggested controls are given to clients as a guide and while we do not expect all clients and all contracts to contain these precise clauses we encourage clients to develop a consistent strategy for effective risk transfer and monitoring.
In addition to the proposed insurance requirements listed below there may be the need for contractors to have additional policies or coverage enhancements and endorsements.
As an example contractors working in the bush should have their policies extended to include forest fire fighting expenses. It is impossible to detail every exposure and insurance solution within the scope of this content. We advise you to review your contracts with your Axis Insurance Managers professional to ensure adequacy of the coverage required for the particular contract you are negotiating.
The CONTRACTOR agrees to defend, indemnify, save and hold harmless ABC COMPANY INC. from and against any and all claims, demands expense and liability arising out of injury or death to any person or the damage, loss or destruction of any property which may occur or in any way grow out of any negligent act, error or omission of the CONTRACTOR, its agents, servants and employees, and any and all costs, expense and/or attorney fees incurred by ABC COMPANY INC. The CONTRACTOR agrees to investigate, handle, respond to, provide defense for and defend any such claims, demands or suits at its sole expense related thereto, even if such claim, demand or suit at its sole expense related thereto, is groundless, false or fraudulent.
2.0 Claims for Liens
The CONTRACTOR shall hold ABC COMPANY INC. harmless from any and all claims for liens of labour, services or material furnished to the CONTRACTOR in connection with the performance of its obligations under this contract.
3.1 Limits of Liability
All reference to limits in the following clauses applicable to this section shall not be construed to be an express or implied limitation of Contractor’s liability, nor that ABC COMPANY INC. accepts liability above such limits or that any insurance available to ABC COMPANY Inc. shall be excess of limits required herein. Limits as required herein shall in no way constitute a release of liability by ABC COMPANY INC. beyond such limits. Further, acceptance by ABC COMPANY INC. of insurance documentation shall not constitute in any way acceptance of the adequacy of coverage nor compliance with the insurance requirements herein.
3.2 Professional Liability Insurance
The CONTRACTOR shall maintain professional liability coverage during the term of this agreement. The limits of this coverage shall be a minimum of $5,000,000.00 combined single limit. This requirement shall extend to any and all professional subcontractors employed by the prime consultant CONTRACTOR or surveyor. CONTRACTOR shall provide certification of such insurance and a copy of the policy upon request.
3.3 General Liability Insurance
The CONTRACTOR shall maintain general liability coverage during the terms of this agreement. The limit of this coverage shall be a minimum of $5,000,000.00 combined single limit per occurrence for bodily injury, personal injury, and property damage; and naming ABC COMPANY INC. as an additional insured. CONTRACTOR shall provide certification of such insurance and a copy of the policy upon request.
3.4 Workers’ Compensation Insurance
The CONTRACTOR shall maintain workers’ compensation coverage during the term of this agreement.
3.5 Automobile Liability Insurance
The CONTRACTOR shall maintain automobile liability coverage during the term of this agreement. The limits of this coverage shall be a minimum $5,000,000.00, combined single limit per accident for owned, non-owned and hired vehicles. CONTRACTOR shall provide certification of such insurance and a copy of the policy upon request.
Find Out More:
This list is not exhaustive and there are a variety of other insurance coverages that mining companies need in order to address all the risks they face and prevent losses. Download our free guidebook “Mining and Mineral Risk Transfer Insurance Guide” here to find out how you can protect your company’s assets: