The practice of drilling for natural gas, known as fracturing or“fracking,” has come under the insurance industry's microscope,says Matt Pateidl, vice president of environmental risk for LocktonInc. in New York. The brokerage has several clients involved infracking: from those who manufacture the pipelines to those whotend, maintain and clean retention ponds.

While fracking supports economic growth, many people are wary ofthe “secret sauce” that is used in the process, Pateidl says. Inaddition to water and sand, which make up 98 percent of the fluidsinjected into deep shale formations, the fracking process alsoincludes small amounts of some 200 chemicals like benzene,formaldehyde, kerosene, toluene and isopropyl alcohol, according tothe web site of the New York State Department of EnvironmentalConservation. That mixture can vary from state to state.

In December, the Environmental Protection Agency released areport saying that fracking “probably” contaminated well water inWyoming with dangerous amounts of the chemical benzene.Comprehensive results are due late this year.

Pateidl has not seen fracking exclusions on insurance policiesyet, but says, “It has the attention of the underwriters. Carriersare very much scrutinizing that exposure right now.”