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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.

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With oil from the recent catastrophe in the Gulf reaching Florida 's coast line, now is the time to become informed on what your options are to protect your communities.

Join Becker & Poliakoff's Disaster Claims Recovery Team  Friday, June 25 at 3:00 - 4:00  PM EDT for a live web event, where you will learn about:

• The BP claims process
• The insurance claims process
• How to spot the pitfalls that hinder recovery

Presenting from Becker & Poliakoff's Disaster Claims Recovery Team are John Cottle, Esq.  and  Sanjay Kurian, Esq.   The webinar will be moderdated by Cara Thomas, Esq.

John Cottle, Esq.	Sanjay Kurian, Esq.	Cara Thomas, Esq.

 There is no cost to participate.  Register today by using this link:

https://compx11.eventcenterlive.com/cfmx/ec/register/reg.cfm?BID=1&RegID=B53FB847

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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.  Click HERE to review the claims manual.  A word to the wise - think carefully before you accept compensation or sign any documentation supplied by BP.  You may inadvertently release BP from additional claims or damages.

BP bears responsibility for various categories of damages, such as:

• Removal and Cleanup Costs
• Property Damage
• Subsistence Loss
• Net Lost Government Revenue
• Net Lost Profits/Earning Capacity
• Costs of Increased Public Services; and
• Natural Resource Damage

BP has reportedly paid out more than $3 million in damages to Floridians thus far.  The Miami-Herald indicated there are complaints about the lack of oversight regarding these claims, while BP's 40+ page claims manual states that the United States Coast Guard plays a "significant role". 

Condominium associations are not immune to losses and damages from the oil spill.  Many associations in the Panhandle area run in-house rental programs and/or collect revenue from an on-site rental agent to supplement annual budgets.   Moreover, associations are joining together to decide whether to devote funds to protect the beaches with barriers such as floating booms and the like.  Those types of efforts are expensive.

Attorneys John Cottle and John Townsend have been hard at work meeting with community association clients to discuss potential losses, the powers and duties of the association with respect to mitigation efforts, preserving evidence of loss and the claims process.  We strongly encourage community association leaders and managers not to bear the burden of this event without appropriate legal counsel.  One mistake and the next claim could be against you, instead of (or in addition to) BP.

You can find the state of Florida’s online resource for information about its response to the oil spill at http://www.dep.state.fl.us/deepwaterhorizon/default.htm. 
 

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Community Leaders, Management, Staff and Owners Must Act Now to Protect Their Investments, Livelihoods and Homes.

Gulf Coast communities have dealt with a lot of casualties over the years.  Many owners were displaced for years after Hurricane Opal.  Opal's 20 foot storm surges destroyed buildings and businesses.  While special assessments mounted to cover mitigation, repair and other costs, property owners & businesses that cater to community association management/vacation rentals lost their source of revenue - a double whammy.

Oil continues to gush into the Gulf of Mexico.  This disaster is as potentially damaging to the Gulf Coast communities as any hurricane or tornado.  News reports indicate an oil slick the size of Delaware hovers offshore and is likely to make landfall in significant amounts.  Gulf shore residents can expect tar on the beach, an ocean sheen, fish and birds washing up onto shore and more.  Needless to say, tourists are already canceling their plans to visit the Gulf Coast and business are showing signs of distress. While there are still a lot of unknowns, the effect of this spill on the environment and the economy on the northern Gulf Coast is certain to be devastating.  

Community leaders, managers, staff members & owners all have a role in minimizing losses.  Please, protect yourselves and your investments.  Implement your disaster plan and document all losses, including cancellations of vacation plans, beach clean up, damages to personal property and the like.

As with any catastrophic loss, Gulf Coast owners and residents can expect a mass influx of outsiders looking to benefit from this unfortunate event.  Contractors, public adjusters and yes, even attorneys, are likely to swoop down on the region.  BP created a claims process - anyone believe that the oil company is looking out for your best interests?

Becker & Poliakoff Attorneys have represented community associations in the Gulf Coast/Panhandle area for more than twenty (20) years.  Helping clients recover from casualty losses is one of our services.  Attorneys Ray Newman, John Cottle, Angela Chao Clark and John Townsend are already in the process of advising clients how to minimize their losses and prepare for the legal issues they will need to confront in the coming days, weeks, months - perhaps years.

John Cottle explained to Tallahassee Democrat publication that obtaining the remedies available under the federal Pollution Act of 1990, requires evidence of losses. Board Certified Construction Attorney Sanjay Kurian (a contributor to this blog) indicated that insurance claims are not easy or simple matters in an article published by the News Press.  His experience comes from helping community associations recover insurance proceeds from Hurricanes Charley, Jeanne, Francis & Katrina (among other cases).

Becker & Poliakoff has maintained a fully staffed office in Panhandle area since 1998, representing hundreds of community associations with respect to board/association operations, interpreting and enforcing covenants and restrictions, regulatory compliance issues, disaster recovery, insurance claims, construction disputes and more.

For more information on what you can do now to prepare, minimize your losses and ultimately recover for your damages, please visit www.hurricane-recovery.com.   We wish for the best for the Gulf Coast, surrounding areas and all of Florida. 

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