FOR IMMEDIATE RELEASE
July 13, 2012
Media Relations Hotline
Columbus, OH- Nationwide issued the following statement
today regarding insurance coverage concerns related to
hydraulic fracturing, better known as "fracking".
Gas and oil drilling has been going on in this country for
many years in the west and southwest. Fracking is another
variation of the gas and oil business. In recent years, oil
and gas exploration has come to New York, Pennsylvania and
Nationwide has not changed our policies or guidelines, nor
are we cancelling policies. Fracking-related losses have
never been a covered loss under personal or commercial
Nationwide's personal and commercial lines insurance
policies were not designed to provide coverage for any
Insurance works when a carrier can accurately price the
coverage to match the risks. When information and claims
experience are not available to fully understand the scope
of a given risk, carriers aren't able to price protection
that would be fair to both the customer and the company.
However, Nationwide will investigate all claims submitted
by our customers that they believe are the result of damage
from fracking. Every Nationwide claim is reviewed on a
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.
Insurance is a contract and it is designed to cover certain
risks. Risks like natural gas and oil drilling are not part
of our contracts, and this is common across the industry.
Our longstanding underwriting guideline is that we do not
insure the oil and gas business.
We encourage consumers to be knowledgeable about any risks
to their property and assets. For advice, seek the help of
financial and legal specialists who can discuss the unique
nature of the risks associated with oil and gas
exploration. We also advise consumers to talk to their
insurance agent to understand what coverage is provided in
their personal or commercial lines policies.
Nationwide Mutual Insurance Company, based in Columbus,
Ohio, is one of the largest and strongest diversified
insurance and financial services organizations in the U.S.
and is rated A+ by both A.M. Best and Standard & Poor's.
The company provides customers a full range of insurance
and financial services, including auto insurance,
motorcycle, boat, homeowners, pet, life insurance, farm,
commercial insurance, annuities, mortgages, mutual funds,
pensions, long-term savings plans and specialty health
services. For more information, visit www.nationwide.com
Nationwide, the Nationwide frame mark, and On Your Side are
service marks of Nationwide Mutual Insurance Company.