The most important aspect
of loss mitigation occurs long before the loss, back during the underwriting
process. When a bond program is first established, it is possible to structure
the size and nature of the various increments and bonds to greatly facilitate
the release of bonds and to reduce the amount of bond at risk at a single
time.
Next, as an operator
progresses through the mining process, the ongoing monitoring of activities
can greatly diminish the risk of large loss potential.
Finally, when the
"loss" has actually occurred, the proper evaluation of the risk, planning
and handling of the reclamation process can produce an ultimate payout far
below what would be expected.
NewBridge Services
brings to a surety:
