Working through Jupiter Insurance, BP's captive insurer, BP provides about $700 million in self-insurance for much of its property and liability cover. However, according to media reports, Jupiter does not have reinsurance beyond the $700 million on hand to cover the massive claims associated with the Deepwater Horizon disaster.
EAPD says various media reports indicates that BP purchased $400 million in Side-A D&O liability coverage through brokerage firm Marsh, before the Deepwater Horizon explosion in April.
EAPD said BP's coverage is arranged in an eight-layered tower. Ace Bermuda International has the primary layer ($25 million), over which Zurich wrote $25 million in first-layer excess coverage. Other insurers participating in the program include Chartis, Ace European Group, Axis, Liberty Mutual, The Hartford, QBE, Arch, Great Lakes, and Beazley. The $155 million top-level excess layer is divided into shares, of which Chartis has the largest ($20 million).