$Stock*Shop*Charts*News*Option$

[Seminole Red]

The full extent of Carnival's liabilities as a result of the Costa Corncordia accident remains to be seen. The company's insurance is a combination of self-insurance — a fund that it maintains for disasters — and policies with high deductibles, according to its financial disclosures.

"We are not protected against all risks, which could result in unexpected increases in our expenses in the event of an incident," the company's SEC filings say.

Some of Carnival's liability could be determined from the voyage data recorder, a device similar to a "black box" used to analyze a plane crash. The recorders allow investigators to review what happened just before an accident.

Jack Hickey, a Miami attorney who has practiced maritime law for 32 years, said Costa Cruises will likely face legal consequences for a whole host of reasons, including the captain of the Costa Concordia's apparent decision not to immediately issue a mayday call and inability to properly navigate the ship before it ran aground.

Costa said in its statement that the captain tried to prepare for an eventual evacuation, but that it was too difficult for passengers to get off because the ship tilted suddenly.

"If you are the captain of a ship carrying 4,000 people, you should know the waters you ply like the back of your hand," Hickey said. "There are obviously questions about that. It's one thing to get into problems, but you must react appropriately."

However, Hickey also said he doubted the accident would have a broad impact on the cruise industry.

"The cruise industry as a whole is pretty healthy, it's growing," he said. "It might affect bookings on Costa in the near term, certainly over the next year."


Read more: http://www.foxnews.com/us/2012/01/14/cruise-disaster-unlikely-to-halt-industry-growth/#ixzz1jURchI3J