A recent Standard & Poor report maintains that Oklahoma will face sharp economic consequences in the future as a result of man-made earthquakes. The rate of seismic activity in the state has increased dramatically recently as a result of hydraulic fracturing, or “fracking.” StateImpact Oklahoma reports that the earthquakes may be a liability for home and business owners, most of whom do not own earthquake insurance. The earthquakes could also affect transportation, infrastructure, and utilities. The S&P report notes that it’s unclear who will be liable in the event of an earthquake.
Insurance lenders are expected to begin altering requirements in areas where fracking is taking place. Home and business owners could see raised insurance rates in affected areas.
