The ultimate insured loss as a result of the grounding of Italian cruise liner Costa Concordia, and where in the industry that liability will fall, will depend mainly on three factors – the number of deaths, whether the ship is declared a constructive total loss (CTL), and whether the 2,300 tonnes of oil (500,000 gallons) on board the ship cause pollution in an area internationally recognized as a marine sanctuary. The allocation of that liability between the P&I clubs and its Bermuda-based captive reinsurer Hydra, and the mainstream insurers and reinsurers, will likely take some time to calculate. Legal disputes cannot be ruled out. The size of Carnival Corp's business means that most of the London market will have some hull & machinery exposure. Hannover Re said that it would suffer a "major loss", that being more than €10m. Generali said that the impact would be "small". RSA Insurance said that the exposure was below €10m ($12.7bn). XL is understood to be working on the matter but has not yet come to a firm conclusion on its likely liability. Allianz said that it was one of the underwriters but that resolution of liabilities would not be quick. The structure of the mutual protection & indemnity sector means that $8m will apply directly to Concordia's insurer The Standard & Steamship Mutual Club. The next $22m will be shared within the P&I clubs in a proportion to each club's premium, entered tonnage and level of historical claims. The next $30m in liability will fall to Hydra. Above that level, up to $560m, the losses are shared between Hydra and the reinsurance market. Beyond $560m all losses fall on the reinsurers. Experts from two ship salvage companies, US-based Titan Salvage and Netherlands-based Smit, were reported on site waiting to assess the ship. If the ship is recoverable within the estimated €405m ($517m) hull and machinery cover, then a CTL will not be declared and the P&I clubs will be off at least one of the potential hooks. The P&I clubs' other concern – and also a worry for its excess of loss reinsurers – will be the danger of pollution. The relatively low loss of life on a ship carrying more than 3,200 passengers and 1,000 crew means that what could have been one of the P&I clubs' major potential liabilities is unlikely to be a significant part of the total insured loss.