To Get Help Now
Click Here
 
Today's Date:

Fracking Damage Not Covered by National Insurer

AddThis Social Bookmark Button

Nationwide Mutual Insurance Co. has said that it’s personal and commercial insurance policies “were not designed to cover” risks from damage stemming from hydraulic fracturing, a gas drilling process in which water laced with chemicals is blasted deep into the earth, more commonly known as fracking.

The insurance company said that the risks of fracking “are too great to ignore” and that the risks “involved with hydraulic fracturing are not prohibited for General Liability, Commercial Auto, Motor Truck Cargo, Auto Physical Damage and Public Auto coverage,” the Associated Press reported.  These prohibited risks apply to home and land owners who lease their land for fracking, and contractors who are involved in fracking operations, including drill site water carriers, lumber and pipe carriers, and those who operate heavy equipment and vehicles used in drill site operations, ABC News says.

Mike Elmendorf, president of Associated General Contractors of New York State said “it’s hard to fathom the rational for this decision,” regarding the coverage limitations Nationwide has put in place, saying “It would seem Nationwide is not on job creation’s side.” While Jeffrey Hanneman, of Aon Risk Solutions said though he does not expect the Nationwide decision to become a trend among insurers, it could be that increasingly negative publicity was a major factor in the change of policy for the insurance carrier.

So far, Nationwide Mutual Insurance is the only major insurance company to make this type of policy change.

breakinglawsuitnews.com disclaimer: This article: Fracking Damage Not Covered by National Insurer was posted on Friday, July 13th, 2012 at 6:42 pm at breakinglawsuitnews.com and is filed under Toxic Substances Lawsuits.

« »

Comments are closed.