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All industries need to arrange cover for accidents (this should not be news in an argument about industrial insurance and liabilities). Some companies are big e

All industries need to arrange cover for accidents (this should not be news in an argument about industrial insurance and liabilities). Some companies are big enough to hold their own funds, for example Shell has payed out $20 billion in settlements for the Deepwater horizon accident. That is more than the $13 billion dollar fund arranged to spend in the event of nuclear accidents in the whole of the US. The idea of holding oil companies liable for climate change has a ring to it, but insurance wont cover it because there is no legal precedent. There is legal precedent to claiming damages on industrial accidents and nuclear industry accidents. If one nuclear plant fails badly for any number of reasons and fallout is blown towards a city or across valuable farmland, the claims could easily exceed 13 billion USD.

AnthonyMouse 8y ago
> All industries need to arrange cover for accidents (this should not be news in an argument about industrial insurance and liabilities). Rarely in the amount of the theoretical maximum amount of damage they could possibly do. In practice when a company has more liability than insurance coverage, they end up in bankruptcy and it's the insurance policies of the victims that end up paying out, or some kind of government assistance. This is especially true for very rare and very large claims, because nobody really carries that much insurance. For example, Boeing no doubt has insurance, but their worst case failure mode is something like the hypothesized worst-case scenarios for the Y2K or Y2038 bug where some integer rolls over and every plane they've ever made crashes into the ground at the same time. There is no way they have enough insurance to cover that -- it would be a trillion dollars. But neither do we expect them to, because it's very unlikely even though it could theoretically actually happen. The same kind of thing could happen to a major auto company, or really any company that runs the same software on a million different pieces of industrial hardware. A company could sell a million pacemakers and have them all fail at once, or elevators, or emergency dispatch equipment. None of them are insured for that amount of liability. The oil companies are rare in the sense of having extremely deep pockets, enough to cover a major claim like that on their own, but they're about the only instance of that. And even they would be completely bankrupt if the courts ever start allowing claims against them for the damage from climate change.

AnthonyMouse 8y ago

> All industries need to arrange cover for accidents (this should not be news in an argument about industrial insurance and liabilities). Rarely in the amount of the theoretical maximum amount of damage they could possibly do. In practice when a company has more liability than insurance coverage, they end up in bankruptcy and it's the insurance policies of the victims that end up paying out, or some kind of government assistance. This is especially true for very rare and very large claims, because nobody really carries that much insurance. For example, Boeing no doubt has insurance, but their worst case failure mode is something like the hypothesized worst-case scenarios for the Y2K or Y2038 bug where some integer rolls over and every plane they've ever made crashes into the ground at the same time. There is no way they have enough insurance to cover that -- it would be a trillion dollars. But neither do we expect them to, because it's very unlikely even though it could theoretically actually happen. The same kind of thing could happen to a major auto company, or really any company that runs the same software on a million different pieces of industrial hardware. A company could sell a million pacemakers and have them all fail at once, or elevators, or emergency dispatch equipment. None of them are insured for that amount of liability. The oil companies are rare in the sense of having extremely deep pockets, enough to cover a major claim like that on their own, but they're about the only instance of that. And even they would be completely bankrupt if the courts ever start allowing claims against them for the damage from climate change.