Australia’s largest general insurance company, IAG, has said that it will no longer cover farmers for public liability if they have coal seam gas (CSG) infrastructure on their property.
IAG has confirmed its major rural and regional insurer, WFI, will join its other subsidiary, CGU, in no longer providing the coverage if there is “unconventional gas” operations on properties.
IAG said the company does not specialise in mining and resources operations and the change will affect existing customers when their policies come up for renewal, according to a report by ABC News.
The development has made farmers apprehensive that they will have to cease farming altogether if they cannot get cover, leading them exposed to liability risks.
It is understood the Queensland government has been holding talks with insurers, mining industry representatives and AgForce, in an attempt to resolve the problem.