Halliburton Energy Services will plead guilty for destroying evidence related to BP's 2010 oil spill in the Gulf of Mexico, in which Halliburton acted as the cement contractor on the exploded drilling rig that caused the disaster.
Although the case brought against the company shows that it thoroughly tested the Macondo oil wells' safety capabilities, an insurance expert says Halliburton's decision to meddle with its evidence may cause liability fallout that will be difficult to control.
"Halliburton is publicly traded. As a publicly traded company, any D&O coverage for the entity only extends to Securities Claims," says Monica M. Minkel, senior vice president of Executive Protection at Colorado-based Poms & Associates Insurance Brokers, Inc. "There would be no coverage under the entity portion of the D&O contract for fines, penalties or even defense costs that are tied to the entity itself."
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