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

The aforementioned water scarcity problems, water quality problems, and climate-related impacts will be a major challenge to businesses in the years ahead. It is increasingly clear that the era of cheap and easy access to water is ending, posing a potentially greater threat to businesses than the loss of any other natural resource, including fossil fuel resources. This is because there are various alternatives for oil, but for many industrial processes, and for human survival itself, there is no substitute for water. Company executives and investors have no choice but to boost their scrutiny of water- related risks, especially in regions. | Environmental Pollution Liability and Insurance Law Ramifications in Light of the Deepwater Horizon Oil Spill Dr. Kyriaki Noussia Abstract The financial impact of the April 20th 2010 explosion and sinking of the Deepwater Horizon in the Gulf of Mexico is estimated to overall eclipse the financial impact of the Exxon Valdez oil spill in 1989 - which resulted in a billion . dollar settlement and in 5 billion . dollars 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 nevertheless the environmental liability and insurance law ramifications of the disaster continue 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 or loss of production income comprehensive general liability operator s extra expenses - occurred for the control of the well physical damage workers compensation or employers liability. Furthermore the insurance loss is estimated to be spread throughout the insurance and reinsurance markets in London the . and Bermuda. This paper examines the liability arising out of environmental pollution and the consequences it bears on insurance in the light of the occurrence of the Deepwater Horizon oil spill. In doing so it evaluates the environmental pollution liability regime and the environmental pollution insurance coverage whilst also projecting on potential future directions in both fields. I. Introduction Environmental pollution is here to stay for good. The modern way of living has allowed the threat of the occurrence of environmental pollution at anytime become more than ever before apparent and part of our everyday routine. Consequent to the occurrence of environmental pollution a liability regime also arises. It is widely acknowledged that the globalisation of .

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