As a result of the Deepwater Horizon oil spill in the Gulf of Mexico many businesses are facing an inability to earn income. Those affected range from commercial and private fisheries to dock, marina and waterfront property owners, and even city, county or state governments.
British Petroleum, the company responsible for the disaster, has taken steps to provide restitution for those and others who are suffering from bodily harm or illness, property damage, and/or loss of income. Last week, the company announced that it would create a $20 billion claims fund to satisfy “all legitimate claims” including natural resource damages.
There are three ways to file a claim with BP. The company is accepting claim applications by phone at 1-800-440-0858, on the Web at www.BP.com/claims, and at one of 33 field offices in Louisiana, Mississippi, Alabama, and Florida. A 1,000-member claim team has already received about 64,000 claims and issued payments exceeding $100 million to date and is preparing to receive more.
Before you place your claim here are five steps you need to take in order to ensure your economic needs are met:
Determine your type of claim. Different documentation is required for each type of claim. Claims can be submitted for:
— Property damage
— Net loss of profits and earning capacity
— Subsistence loss and natural resource damage
— Removal and cleanup costs
— Cost of increased public services
— Net loss of government revenue
Gather your documentation. BP needs verifiable evidence that you have been negatively affected by the oil spill. Here are examples of what you’ll need:
— Loss of income or net profit claim documentation can include: Tax records, trip tickets, wage loss statements, deposit slips, boat registrations, and/or copies of your current fishing license. If you are filing for lost wages then file a separate claim form for each person affected. For business interruption losses, a claim representative will determine the amount of time the business was not operational and will request financial records including profit and loss statements and tax returns.
— Cash-only employees will need to provide a phone number for manager to confirm employment, but they can submit pay stubs or another document showing how much money they earn.
— For claims related to property damage you might need photographs and/or receipts after you replace or clean the
— Loss of rental claims can include prior occupancy rates, cancellations, tax records, and bookkeeping records. If you are reporting property damage and more than one real estate property is involved, please file a separate claim form for each address.
— Bodily injury claims are not payable under the Oil Pollution Act of 1990; however, BP will evaluate each bodily injury claim submitted on a case-by-case basis. You will need to provide medical records, medical bills, or pharmacy records to support the claim.
Consider hiring a lawyer. An attorney
is not necessary to submit a claim to BP, but some claimants may want to seek the advice or assistance of an attorney. In addition, individuals and businesses also have the option to join any pending class action lawsuits against BP and the other culpable parties. In which case, legal representation is usually necessary. Such lawsuits can take years and even decades before punitive damages are paid so it is important to file your claim with BP first. To communicate with BP on your behalf, your attorney must send a letter of representation or the attorney representation form to:ESIS, Inc.
One Beaver Valley Road
Wilmington, DE 19803
Fax:Â 302-476-6272
Submit your claim to BP and follow up. Once your supporting documentation is received, your claim will be evaluated. If the documentation is approved an advance payment, which will be up to the equivalent of one month lost income, will be provided. The average time between filing a claim and receiving a check is four days for individuals and seven days for more complex business claims that have provided supporting documentation.
If documented losses are larger than the amount of the interim advance payment, then individuals and businesses will receive their second payment about 30 days after their initial advance payment was received. This second check will be for the same amount as the first. If you have provided documentation that demonstrates the losses you incurred are larger than the total amount of interim advance payments, than you must work with a claim’s adjuster to discuss those losses, and pending that discussion, you will receive a supplemental payment for the difference.
BP will continue to evaluate whether additional payments are appropriate because claimants remain out of work due to the spill. To check on the status of a claim if you have not heard from a claim adjuster call 1-800-573-8249.
Beware of Scams. Steer clear of those requesting a payment to submit your claim. Claims will be processed at no cost to you. Also, if you file a claim, or have received payment for interim benefits, NO ONE should ask you to waive any rights to assert additional claims. In addition, after filing a claim, you can still file an individual legal action, or participate in other legal actions associated with the Deepwater Horizon incident.
For more information visit:
BP claims process: A detailed description of the claim intake process
BP claim office locations: A list of 33 claim offices in Louisiana, Alabama, Mississippi, and Florida
DisasterAssistance.gov: For specific state information and resources on housing, food, employment and business loans.
Small Business Administration: Fact sheet for economic injury disaster loans