The Mining and Natural Resources specialty network covers all mineral and coal extraction and processing operations. Primary operations that involve mining include extraction, milling, concentration, smelting, refining, and waste disposal. Ancillary operations can include exploration, mine development, bulk material transportation, and power generation.

This is a tough occupancy to underwrite because mines are often located in remote and sometimes hostile environments. Exposures regularly include natural hazards and underground and aboveground situations that are unique to the mining business. Mining equipment, both mobile and fixed, is usually large, expensive, and can be critical to operations. But the main reason mining is such a tough occupancy to underwrite is that a relatively small property damage loss can cause an unusually large business interruption loss if a critical piece of machinery or operation is affected. Additionally, the great variety of operations that take place at a mine make it very difficult to control all the existing loss exposures.

In addition, income streams are often large and complex. What appears to be separate operations (underground extraction, aboveground processing, and waste disposal) are totally interconnected. A breakdown of one operation directly impacts the others.

These conditions all too frequently result in large, complicated losses. Policy forms are commonly manuscript and can be ambiguous and broad on critical exposure issues. There are many underwriting particularities to mining risks that must be addressed in the policy language. Although from time to time new players enter the market and others leave, the business remains a specialty class requiring dedicated expertise and a long term view and commitment.

Gen Re has a team of specialists who understand mining risks. We focus on allowing you to offer the level of protection that your insured's require while protecting you against the inherent volatility in this class of business. We can provide reinsurance solutions on both underground and aboveground risks on all types of mines -- from precious and base metals to coal and industrial minerals. Additionally, if you are concerned about a certain aspect of a mining risk -- for example tailings dams, heap leach pads or any other critical infrastructure -- we can carve them out of the program and reinsure those exposures only. This will allow you to cap the exposures you are most concerned about without paying away premium to your reinsurer for the risks you are comfortable with.

If you have a mining risk and are looking to buy Fac on it, complete a submission form or contact us at the Gen Re branch near you.
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