Noah Nadler in Law360: Fracking Claims Set Stage For Fresh Pollution-Exclusion War


While much remains hazy about coverage for hydraulic fracturing claims, insurance attorneys say one thing is clear: Fracking will open a new front in the perpetual war over when and whether pollution exclusions should apply.

The controversial drilling method and its environmental safety have grabbed headlines, and litigation against oil and gas companies has followed, but all has been fairly quiet on the insurance side so far...

Courts have held that there's an absolute bar to coverage when policyholders don't notify their insurers of the pollution within a strict deadline, according to Noah Nadler, a policyholders' attorney at Haynes and Boone, LLP. They can't argue that the insurer wasn't prejudiced by the late notice, he said.

“That's why it's important if there's a situation where you know of any type of event related to fracking, you should provide notice even if there haven't been any claims,” Nadler said.

Excerpted from Law360, October 30, 2013. To view full article, click here (subscription required).

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