... For Now.
BP has reportedly set aside a reserve of some $32.2 Billion or $32,200,000,000.00 against its foreseeable liabilities as a result of the BP Oil Spill Catastrophe. This figure takes into account discounts extended to BP off of likely fines and penalties for BP's "Good Faith" efforts to contain the damage. It will be offset by BP's expected Tax Credit of $10 Billion against its "spill costs."
In other words, the $32.2 Billion reserve is BP's publicly announced prediction of its likely liabilities to pay fines, penalties and Damages in the situation: "BP's $32.2 billion provision for spill costs, which includes a $20 billion fund for damages that was established under pressure from the White House, provides a window into the company's view of the spill's impact." Jad Mousawad and Clifford Krauss, "BP Details $30 Billion Plan to Pay For Spill" p. B1, col. 2 (New York Times Nat'l ed., "Business Day" Section, Wednesday, July 28, 2010).
Dennis Wall is Co-Author of the leading book on Insurance Coverage for Catastrophe Claims, "CATClaims: Insurance Coverage for Natural and Man-Made Disasters" (West Publishing Company 2008; 2010 Supplement in process). Mr. Wall will be a featured speaker on a panel addressing "BP Oil Spill Damages Claims: The Coverage Predicates" at the September 15, 2010 Seminar of the Insurance Law Committee sponsored by the Orange County Bar Association in Orlando, Florida. Mr. Wall will also speak on a panel at the American Conference Institute's Bad Faith Litigation Conference in Orlando, Florida on November 30, 2010 on "Dealing With Catastrophic Disasters: How to Properly Investigate and Handle Overwhelming Claims".
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