BP oil spill trial has begun

superchuck500 said

You're talking about carriers for BP, Transocean and Halliburton?

As far as I know, there hasn't really been much involvement with insurers. BP self insures. I think that Lloyd's underwrites Transocean but I suspect that the limits are well well below the range of damages we're talking about here. Not sure about Halliburton but I don't recall any activity from any Halliburton insurer.

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Most companies this size do self insure...to a limit. They usually purchase "reinsurance"...just like an insurance company does, for large cat claims. In the case of BP, i could see them being 1005 self-insured. But for Transocean or Haliburton, i wouldnt be surprised to hear they have some sort of "backstop" to limits of claims liabilities. If London insures Transocean, they may have already reached an agreement to pay policy limits, which may be a drop in the bucket with respect to the overall settlement.

I suspect once this is settled, i will get a summary email from the insurance aspect.