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Andrew J. Scholz Quoted in “Analysis: Insurers Find It Tough to Price Fracking Risk,” Reuters

May 11, 2012

Andrew J. Scholz of Goldberg Segalla’s Hydrofracking Practice Group was interviewed for a recent Reuters article addressing the many concerns and questions facing insurers regarding how to price the risk of hydraulic fracturing.

The article notes, “Andrew Scholz, a special counsel at Goldberg Segalla in New York, saw parallels with long-running disputes like asbestos coverage, in that many complex issues have not yet been decided. ‘The underlying litigations concerning fracking are still in their infancy,’ he said. ‘There are many suits being filed and many more everyday, but many haven’t gone to judgment and you haven’t gotten to expert causation issues.’”

“For example,” the article continues, “if a trucker hauling fracking wastewater had an accident that led to a spill, a commercial general liability policy would have a pollution exclusion denying coverage; except in some states, the spill would be considered property damage and not environmental, so the exclusions would not apply.”

The article was published in the Chicago Tribune and numerous other industry and business publications.