Nationwide is the first major insurance company to announce that it will not cover damages related to natural gas fracking operations.
One of its divisions, National Casualty, made the announcement.
According to their statement, "From an underwriting standpoint, we do not have a comfort level with the unique risks associated with the fracking process to provide coverage at a reasonable price."
"When a company with the scope of Nationwide Insurance determines that property with fracking is too risky and too dangerous to insure, political leaders considering the practice would be wise to take heed," says Wenonah Hauter, executive director of Food & Water Watch. "What countless families, farmers and small business owners across the nation have already figured out – that fracking just can’t be done safely -national corporations with a stake in our land are now realizing as well. Nationwide isn’t willing to risk its bottom line over fracking, and our elected leaders shouldn’t be willing to risk the health and safety of those they serve."
A company memo states: "After months of research and discussion, we have determined that the exposures presented by hydraulic fracturing are too great to ignore. Risks involved with hydraulic fracturing are now prohibited for General Liability, Commercial Auto, Motor Truck Cargo, Auto Physical Damage and Public Auto (insurance) coverage."
It also states that "prohibited risks" apply to landowners who lease land for shale gas drilling and contractors involved in fracking operations, including those who haul water to and from drill sites; pipe and lumber haulers; and operators of bulldozers, dump trucks and other vehicles used in drill site preparation, according to the Associated Press.
The largest rally against fracking to date takes place July 28 in Washington DC., followed by NYC on August 25-27, and in Philadelphia in September.
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Excerpted from Ecowatch.org, here’s the full article:
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