Discussions on liability cover for farms hosting coal seam gas (CSG) operations are continuing between the Insurance Council of Australia (ICA), the Australian Petroleum Production and Exploration Association (APPEA) and other groups.

“ICA believes contracts between CSG companies and landowners should indemnify the land owner for CSG-related risks,” spokesman Campbell Fuller told insuranceNEWS.com.au. “Insurance remains available for farm risk policies.”

Agricultural groups highlighted concerns about liability insurance availability after WFI policies were changed to exclude the cover from farm policies where CSG activities are underway, while continuing insurance for other risks.

ICA, APPEA, the National Farmers Federation, Queensland Farmers Federation, AgForce and Cotton Australia say they are working to ensure a common understanding of the combined effect of insurance, legislative protections and indemnities in protecting farmers who host gas activities.

“It is hoped that this position will soon be reflected in a common indemnity provision being included in all land access agreements and a common public liability position in farm insurance policies,” they say in a joint statement.

IAG, which owns WFI, says the group does not specialise in underwriting resources and mining activities and the recent change to the liability section of the policy brings it in line with CGU’s approach.

“Since then, it has become clear that farmers would benefit from greater clarity around the liability protection that is in place should they have CSG operations on their properties,” a spokesman said last week.

“As part of this, we’re working with the ICA and will review any proposal around a common liability position across all impacted industries. However, this work is still underway.”