After Carnival's luxury cruise ship, the Costa Concordia, ran aground off the coast of Italy, the company believes it could face insured losses of up to $95 million, showcasing the necessity of a general liability insurance policy.
A spokesperson for Carnival said the company faces a $30 million deductible for damage to the cruise ship plus a $10 million deductible on its third-party personal injury liability policy.
Tragically, the cruise ship accident also cost six passengers their lives as the cruise ship took on water after hitting the island of Giglio. Of more than 4,200 passengers and crew who were aboard the Costa Concordia, more than a dozen passengers remain missing, while at least two of the roughly 60 passengers who were hurt from the crash are suffering from serious injuries.
Captain Francesco Schettino, who is currently in custody for questioning, is suspected of causing the crash because he ordered the ship off its programmed route.
"We can’t deny that there was a human error," Costa Crociere Chairman Pier Luigi Foschi said at a press conference in Genoa. "The route had been properly programmed in Civitavecchia. The fact that the ship strayed from that course can only be due to a maneuver that was not approved, not authorized nor communicated to Costa Crociere by the captain of the ship."