Oil and natural gas companies frequently have to settle for limited pollution insurance for hydraulic fracturing activities because few large insurers write environmental impairment liability policies for such operations, experts say. More oil and gas firms are purchasing environmental impairment liability coverage, said Jeff Hanneman of Aon Risk Solutions. Companies with operations in Louisiana and the Marcellus Shale are of particular concern to insurers, however, because of previous environmental litigation and nearby populated areas, respectively, Hanneman said.

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