Gulf Coast Shrimping Insurance

Re Q’s insurance situation for shrimp farmers in the Gulf: Is the shrimping livelihood insurable against foreseeable manmade disasters?

There’s a market for what’s called aquaculture insurance, and I’m sure there will be some significant claims on those policies (most of which are held through the Lloyds of London market.) It’s not quite as significant as the claims BP and other refiners will put in on their energy insurance policies (I’ve seen estimates of about $1.5 billion in energy insurance claims) but that’s largely because most shrimpers probably don’t have much in the way of insurance on their stocks of shrimp.

Instead, they’re more likely to take out general business interruption policies, which would pay off in the case of any prolonged cessation in income. So, yeah, the spill would be covered, but they’d have been thinking more of hurricanes and such when they took out their policies.

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