BP Claims Process; Q&A From & Link to Gulf Oil Spill Webinar
Many of the participants in the Gulf Oil Spill Webinar held on Friday, June 25, 2010 asked questions regarding the types of claims to submit, the mechanics of the claims process, whether insurance policies will provide coverage for losses and whether there is other financial assistance available.
BP bears responsibility for various categories of damages, explained in:
BP Claims Process for Damages from Deepwater Horizon Oil Spill
You can file claims by visiting the website www.bp.com/claims or visiting one of the BP claim centers. Lost rental income as a result of cancellations are included, but you have to substantiate the loss of revenue by tracking cancellations and showing historical earnings.
Reductions in Staff / Loss of Employment
One participant indicated the association needed to let go of staff as a result of decreased demand and asked whether fired employees could file claims for lost income. The answer is yes and they should file those claims. They will need some form of documentation from the former employer. Associations in this predicament should have counsel prepare or at least review this documentation to ensure it doesn't jeopardize their claims.
Calculation of Damages or Losses
Another participant asked whether they needed to file multiple claims or wait until the season was over to calculate and file claims. You only need to file your claim once - you can update your claim file as damages accrue. However, please read the fine print carefully! Sometimes even cashing a check operates as satisfaction of the claim. If you're not sure, please consult with counsel.
Insurance Issues
Many participants asked about insurance coverage. Officials from the NFIP (National Flood Insurance Program) announced that it will pay claims for property damage to homes (and contents) from oil driven ashore in storm surges, but there are limitations. Flood insurance does not cover any special clean up costs associated with oil contamination. Flood insurance provides coverage for damages from rising water (storm surge), not contamination or damages from wind containing water saturated with oil. Many casualty/property insurance policies exclude damage from pollutants so please check with your agent (or the carrier) to learn what your coverage includes.
Other Financial Assistance
Florida offers Small Business Emergency Bridge Loans. These are short term loans to established businesses.
SBA announced that it has made Economic Injury Disaster Loans (EIDL) available and has deferred payments on many disaster loans in the impacted areas. Funds may be used to meet payroll, accounts payable and other financial obligations.
What if BP denies my claim?
If claims are denied or not addressed after ninety (90) days, you may appeal to the U.S. Coast Guard. You may also submit a claim to the National Pollution Funds Center.
Link to Webinar
If you could not attend the webinar or would like an opportunity to absorb the information again, here is a link: BP Claims Process Webinar
We thank all the webinar participants for their valuable input and will continue to provide information to assist you through this process.
.jpg)
BP announced that it has accepted responsibility under the Oil Pollution Act of 1990 (OPA) and created a claims process for obtaining compensation for losses. Even though oil has yet to hit Florida's beaches, condominium and other property owners have both lost income and incurred expenses as a result of the oil spill. 