Liability insurance is required to conduct mining activities in Pennsylvania.
In addition to the liability insurance requirements a surface mine operator is required to provide insurance to cover damage caused by the use of explosives and coverage for damage to public and private water supplies. A surface mine operator may use insurance coverage or a water supply replacement assurance bond to provide financial assurance that water supplies affected by surface mining activities can be replaced. The purpose of this guidance is to outline the methods of insuring mining operations and describe the method by which water supplies, which may be affected by surface mining activities, will be assured of replacement. This guidance applies to all coal and large noncoal operators. Nothing in the policies or procedures shall affect regulatory requirements.