HARMONISING MINE OWNER / CONTRACTOR / SUBCONTRACTOR ENGAGEMENTS

CHALLENGE

Our client was transitioning to a full service supply and ongoing maintenance company. During this transition, they entered into a JV agreement with a mining services contractor whose specialist skillset dovetailed with our clients expanded services offering.

The challenge was to acquire suitable insurance solutions to meet both the contractual requirements of our client / mine owners they worked for, all over the world, and to source adequate insurance cover for their confined space / underground work.

The contractors work was not carried out in their country of origin (New Zealand), and the insurance brokers they had approached in NZ could not offer the cover required, so our client referred them to Allegiant IRS.

SOLUTION

Having already assisted our client in providing a short-term solution to include the contractor under their liability program, we were in an excellent position to understand the requirements of cover for the contractor to allow the JV to flourish from both perspectives.

Our key objectives through this engagement were to:

• Comprehensively explain the contractor’s unique risk profile and expertise to the market by demystifying their work methodologies
• Negotiate suitable professional indemnity insurance after identifying previously uninsured professional risk exposures
• Provide cost effective options by creating competitive tension between several insurers throughout the global market

BENEFITS

Allegiant was able to deliver an insurance solution that enabled the contractor to start working efficiently under the JV arrangement while also providing the freedom to enter contracts with new clients that demanded a high level of cover and insurance flexibility.

The insurance program secured met the contractual requirements, was far more tailored than the cover available in New Zealand and was half the cost.

After our client’s referral, Allegiant helped us navigate a delicate situation by providing a cost effective and detailed solution that met our and our client’s needs.