Gulf oil spill hits $1.6 billion

Gulf spill is biggest insurance lost in 20 years

The April 20 explosion that has killed 11 workers will have a huge insurance claim. The explosion triggered a subsea well leak at the Deepwater Horizon oil rig in the Gulf of Mexico.

The Piper Alpha oil platform fire in the North Sea killed 167 men when the gas from ruptured pipelines ignited. This 1988 claim paid out from 1988 to 1992 to a total of $11.7 billion. Lloyd's of London was the insurer for this claim.

It looks like the Deepwater Horizon explosion claims will reach $1.6 billion. This will be the biggest insurance loss in two decades. What will the cost be to the environment?