Risk Management for the Explosives User

The mining, quarrying and construction industries are often blamed for causing damage to residential-type structures when explosives are used. The claim experience for blasting vibration damage has been poor. This coverage is excluded from the Comprehensive General Liability (CGL) policy. To obtain this coverage, the policyholder must meet additional criteria and an additional premium must be paid. The risk management process offers the explosives user a technique for minimizing the risk of complaints and vibration damage claims on his insurance program and his cash flow. Case histories indicate that the vibration damage claims expense may be a lower risk than the risk of interference with production and cash flow. An annotated bibliography on risk management and defense of vibration damage claims is provided.