by Sara R
A friend made the comment that BP was fully insured for the Deepwater Horizon loss. I did some looking – and was shocked to find that, not only is BP self-insured by a captive insurer and it does not look like they reinsured. I’ll get back to this momentarily – but wanted to share some questions first. If there were interested insurers in the picture, would mitigation of the loss be further along? I’m curious. At the risk of comparing apples and oranges, I have a bone to pick. It was recently mandated that the American people will be required to buy insurance on their own health. Why then are large corporations not required to have the risks of their business better covered than BP’s well was, especially in such environmentally sensitive ventures such as off-shore drilling? Apparently, BP made a business decision not to purchase insurance and not to purchase reinsurance. Did the company at all properly assess the amount of risk they were taking on themselves with their off-shore wells has the drilling been a blind gamble?
continued at Daily Kos....
