Tuesday, June 8, 2010

Advisory for businesses and workers affected by oil spill

As tourism and seafood related businesses and workers face compounding losses from the effects of the Deepwater Horizon BP oil spill, opportunities for recouping money exist.

BP has established a toll-free Hotline, (800) 440-0858, and claim system for people affected by the oil to recover lost income or damage-related expenses. People seeking reimbursement from BP should file a claim at the toll-free number. After doing so, they may also visit BP's local claims office, located at 194 14th Street, the former Apalachicola High School. The office is open seven days a week from 8:00AM to 7:00PM and the Claims Hotline is open 24 hours a day, seven days a week.

For those not satisfied with BP's resolution, there is an additional avenue for assistance available through the U.S. Coast Guard, once BP has finalized a claim. People who have already pursued the BP claims process unsatisfactorily may call (800) 280-7118.


More information about what types of damages are eligible for compensation under the Oil Pollution Act, as well as guidance on how to seek such compensation, are located at www.uscg.mil/npfc/.

The following additional tips may assist business owners and workers in recouping financial losses:

- Florida residents should not sign any documents provided to them in return for money from BP or anyone else until they know the extent of their losses, which may be significantly higher than the money being paid.

- The Attorney General's fraud hotline is open to receive any reports of fraud or price gouging. The hotline is (866) 966-7226.

- The Florida Agriculture and Consumer Services Commissioner gas price-gouging hotline is also operational. The toll-free hotline number is (800) 435-7352.

- Hotel and condominium owners should take detailed records of cancelled reservations. It is important that when these cancellations occur, the cancelling party is questioned whether the cause is because of the oil spill. If the answer is yes, keep a record of the person's name and contact information, and also the revenues lost as a result of the cancellation.

- Calculate estimated losses for a six-week period and be able to provide records, sales receipts and documentation to support such a claim. A good idea would be to compare business now to a five-year average of revenues between May and June, which can offer insight as to the damages incurred.

- Businesses, including shops, restaurants, sport-fishing charters, rental companies, etc. that may be negatively impacted, are asked to keep detailed profit and loss records should a claim need to be presented.

- Make a detailed list of assets - including non-structural - and include appropriate records to support the list. For example: if a hotel or restaurant is within walking distance to the beach and that beach has oil reach its shores, the business' assets are damaged even though there is no physical damage to the structure, and it is important to record this depreciation.

- Be wary of insurance settlement scams.

- For businesses who may have already begun the claims filing process with BP, first, make sure you are dealing with authorized representatives from BP and not scam artists; and be careful not to sign waivers of liability too quickly without getting adequate legal and financial counsel.

- In all circumstances, affected businesses should file a claim with BP via the hotline number – (800) 440-0858.

Lost income

- All claimants will be directed to a hotline (800) 440-0858 that is manned by people specializing in oil spill claims.

- According to BP, payments will be made to address immediate issues associated with property damage or loss of income due to the oil spill. The company is providing interim payments to claimants who are not receiving ordinary income while the cleanup is under way.

- Within 48 hours of receiving supporting documentation (e.g. tax return) the claim will be evaluated and the claimant will be notified of an advance payment for the claim. The equivalent of one month's income will be paid and these payments will continue until they are able to return to work or their overall claim is resolved. If a claim is rejected the person will be notified in writing of non-payment.

- A link to information on some of the types of claims available and who can submit each claim is available at
www.uscg.mil/npfc/Claims/default.asp#types_of_claims

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