Reply #5: "...the $560m insurance policy...was greater than the value of the rig itself"

[Zenlitened]

...the $560m insurance policy Transocean took out on its Deepwater Horizon rig was greater than the value of the rig itself...

Insurance policies that have the effect of incentivizing risk-taking, by making failure profitable...

Gee, I hope that sort of thing hasn't been going on in other segments of the economy. It could lead to disaster. Er, theoretically, I guess.

:silly:

Seriously, though. Maybe the article is written poorly, (it's been known to happen!) and the policy actually covers rig plus personnel, surviving family, lawyers, etc. So there's not really a "profit" for Transocean here.

But shouldn't a policy require certain safety standards? Or is everybody in the boardrooms on both sides of the deal happier with a higher premium for "yeah, whatever" coverage?

It becomes more apparent every day that we've got a business, regulatory and economic system where there really isn't a downside to sloppy work and careless behavior anymore. As long as you're one of the Big Boys.

Joe and Jane Mainstreet, on the other hand, are subject to punishment at any time. Whether we have any connection to the problem or not.

What a racket.