If I sign a gas lease, how will coverage for liability issues be addressed under either homeowner’s or farm owner’s insurance policy?
Several counties in NEPA have recently been targeted by natural gas producers to explore the region for gas by drilling gas wells under leases negotiated with the land owners. First and most importantly you need to have an attorney review the contract you will be asked to sign. Our comments below are based on standardized ISO Home Owner policy language. You must check with your own agent to determine how the language in your policy will address these issues. (1) Since property owners are being paid for the use of their land, this may constitute a “business” exposure. Bodily injury or property damage arising out of or in connection with a business conducted from an insured location would trigger the business pursuit exclusion for a loss arising from the gas exploration activities. (2) There is an exclusion for theft arising from premises rented to others that might be broadly interpreted to apply. (3) There is a Care, Custody & Control “(CCC)” exclusion that might apply if property owne
