Environmental Pollution Liability and Insurance Law Ramifications in Light of the Deepwater Horizon Oil Spill

Abstract

The financial impact of the 20 April 2010 explosion and sinking of the “Deepwater Horizon” in the Gulf of Mexico is, in total, estimated to eclipse the financial impact of the Exxon Valdez oil spill of 1989—which resulted in a $3.5 billion settlement and in $5 billion in legal and financial settlements. In spite of having managed to contain the “Deepwater Horizon” oil spill initially in July 2010, then again in August 2010 and finally in September 2010, the environmental liability and insurance law ramifications of the disaster continue, nevertheless, to loom large. Given the scope of the disaster, the claims involved will, inter alia, implicate property liability, environmental liability, marine insurance and business interruption insurance and loss of production income, comprehensive general liability, operator’s extra expenses—incurred for the control of the well, physical damage, workers compensation and employers liability.