Cleaning up the mess left in the wake of the explosion and sinking of the Deepwater Horizon is going to be a multi-part process. BP is doing its part, trying to stop the shattered well from dumping even more oil into the Gulf and cleaning up what has already come out. Looking ahead, though, there will also be a major role for the insurance industry to play, as it is often insurance companies that bear the brunt of the financial ramifications of accidents like Deepwater Horizon.
Cost Estimates Are Starting To Come Ashore
All told, the most common estimates floating out there for total insurance industry exposure to the Deepwater Horizon event range from about $1.5 billion to $3.5 billion. Should the bulk of the spill stay at sea, the losses will probably be on the lower end of the range. Should the oil come ashore in large quantities, though, it is likely that various business interruption policies will be triggered, pushing up the costs to the industry.
So far, a host of companies have come forward with their initial assessments of liability.
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