Off-Topic: Insurance is not the answer

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	Name:	MartiniMan -
	Subject:	Insurance is not the answer
	Date:	5/26/2010 1:52:39 PM

I am not sure what insurance you would expect BP to purchase. Transocean had the rig insured and have already gotten $561M from the insurer for the lost rig. The only insurance BP could have considered would be what is called PLL (Pollution Legal Liability) and why would they? BP is bigger than any of the insurers they would buy from and in my experience collecting on PLL is no easy task.

So far they have spent over $700M on the response which is less than 12% of their first quarter 2010 profit of $6B. If they spend the entire $6B it would only be one quarter of their profit. Money is not the issue and an insurance company would not have the qualifications nor the personnel to do anything more than a cursory audit of the rig and would not have prevented this from happening. Our company does these audits for several large insurers and I can tell you we do not get into the nuts and bolts of the business practices because we are not nearly as qualified as the operators are. The audit would have focused on general safety practices, etc.