Not Enough Insurance to Cover Oil Spill !

It looks like the insurance coverage that is protecting the businesses involved in th BP oil spill is forcasted to be inadequate to cover the claims. The forecasters are estimating losses in excess of 10 billion, while the insurance contracts total 1.5 billion. I am not sure how this will pan out but you know it is going to be ugly. Also if the Fed increases the liability cap for future oil spill events, then more oil firms will have to buy more insurance and will take a lot of the coverage capacity out of the market. This could trickle down to higher rates in the coming years for all business owners. Only time will tell. Until next time be careful out there and know your risks!   K

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