Deep within the bowels of Houston based Hercules Offshore’s “Description of Business” statement of disclosure is the following paragraph title:
“Our business involves numerous operating hazards, and our insurance may not be adequate to cover our losses.”
Here is the content:
"Our operations are subject to the usual hazards inherent in the drilling and operation of oil and natural gas wells, such as blowouts, reservoir damage, loss of production, loss of well control, punchthroughs, craterings, fires and pollution. The occurrence of these events could result in the suspension of drilling or production operations, claims by the operator, severe damage to or destruction of the equipment involved and injury or death to rig or liftboat personnel.We may also be subject to personal injury and other claims of rig or liftboat personnel as a result of our drilling and liftboat operations. Operations also may be suspended because of machinery breakdowns, abnormal operating conditions, failure of subcontractors to perform or supply goods or services and personnel shortages.”
Additionally:
“Our insurance policies and contractual rights to indemnity may not adequately cover losses, and we may not have insurance coverage or rights to indemnity for all risks.”
By their own words, Hercules may not have enough insurance coverage to handle the “usual hazards” of blowouts and fires that could lead to injuries and deaths of their crew members.
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