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View Diary: Should New York State Require Frackers to Buy Watershed Insurance? (78 comments)

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  •  But how? (0+ / 0-)
    If the watershed is damaged forever, then what the insurer would have to provide water forever.
    If someone ruins our water supply, how is it physically possible for the insurer to start supplying us with safe water?

    I guess I'm not sure what you mean by this.  Do you mean that we'd get deliveries of free bottled water for drinking and never use our faucets or our showers again?  Or have any hope of selling our houses for even a fifth of their current value?  That would not seem like a fair proposal.

    Economically, I suspect the main problem with this proposal is that insurance only really works as a business model if you can spread risk.  Everyone pays home insurance and a random subset of houses burn down, and the insurance company can pay claims and not go bankrupt.  You're talking about a watershed contamination, where a lot of people would need a claim at the same time; how does the insurance company acquire enough capital in time for that, and stay in business long enough to pay out indefinitely?

    Taking jokes seriously is the exact mirror activity of laughing if someone says they have cancer. --jbou

    by Caj on Sat Aug 24, 2013 at 12:53:50 PM PDT

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