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The Insurance Implications of the COSTA CONCORDIA

On May 2, 2012, during MLA week, I was asked by the joint committees of Marine Torts  and Casualties and Cruise Lines and Passenger Ships to speak as part of a panel on the COSTA CONCORDIA casualty. The thrust of my discussion was on the insurance ramifications of the event. In a nutshell, I discussed the breakdown of the insurance coverages for first party and third party insurances. Carnival, the parent company of the owner of the ship, Costa Crociere, reported to have insurance coverage for damage to the ship above a $30 million retention and third-party personal liability coverage above a $10 million retention. Claims are the casualty will cost $1 billion.

My ultimate conclusion in my presentation is that the casualty would not result in a hardening of the hull market and that the liability insurers were well placed to adequately deal with the matter.

Because I have received numerous requests to obtain a copy of my Power Point presentation, please let me know if you are interested in receiving a copy as well by emailing me at miamipandi@comcast.net or mov@chaloslaw.com.

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