Bullion Insurance

Bullion insurance covers against the loss of gold, diamonds and other precious minerals at an insured site or in transit. The ‘all risk’ cover provides physical loss or damage protection, inclusive of theft and transit risks.

Factors affecting premium

There are several factors that affect the premium to be paid including:

1. The type of mineral to be insured. For example, the easier the likelihood of selling the mineral without a lot of paperwork, the higher the susceptibility of it to theft.
2. The security and risk management factors on site. Good and well-maintained systems reduce the incidence of loss on site by external theft, employee theft or fire damage.
3. The security and risk management around the transportation of the bullion. E.g. Will it be under armed guard or ordinary transportation? Is it done by an internal security team or a contracted external team?
4. The type of transport used. Will it be going by road or airlifted? If by road will it be an armoured vehicle with satellite tracking and other security features.
5. Past losses experienced. Have you had any past bullion losses and what risk management changes have been made to minimise similar losses occurring now?

Warranties

The specialised nature of bullion insurance and the high value nature of the insured product requires that they be handled in a specific manner. This often results in the insurance policy having warranties applied especially after a risk management survey has been carried out.  A warranty is a term which must be exactly and literally complied with by the insured. Departure from the exact requirements even for reasons of necessity constitutes a breach and renders the policy void. These warranties can be about how the bullion should be handled, stored or transported.

Personal bullion

With the introduction of the gold coins, more individuals who have purchased them now face a new risk which may not be fully covered under traditional Home insurance coverage. If it’s  stored at a specialised vault, check with the facility provider whether their insurance will cover you as well.

At Firstlink we assist you to structure adequate cover for your bullion. Our clients also benefit from our dedicated claim’s service in the event of a loss. Our approach removes ambiguity and complexity often associated with mining insurance claims.