BP Gulf Oil Spill
Know Your Rights. Know Rumrell Law.
Rumrell Law wants to help you navigate through the clutter of information and protect your rights and your business. You should know that there are certain caps or limits on the damages that BP, Deepwater Horizon, Transocean or any other responsible party would have to pay to others who are damaged. After the Exxon Valdez tanker spill in Alaska, the U.S. Congress passed and the President signed into law a new statute, the Oil Pollution Act of 1990, called “OPA 90,” which deals with damages recoverable for oil spills. Recently President Obama was able to get BP to put $20 Billion with a new procedure for persons who have been affected to make claims for compensation Read More.
In Washington Congress is still trying to raise the OPA 90 cap so that the law will not allow the responsible parties to escape the full responsibility for the spill. Florida has a similar statute that holds parties responsible for pollution damages and it has certain limits on damages as well. The Florida Supreme Court recently ruled on a case that determined fishermen and others can recover damages and compensation under a Florida statute for their indirect damages that were caused by direct damage to the environment and to the fisheries in the waters surrounding the state. View Ruling (pdf)
Because of the limitations on recoverable damages and the limited application of certain laws to your situation, you need to consider other sources to compensate you for your losses. Many businesses have a type of coverage, “business interruption coverage,” that will pay for certain losses to your business as a result of this oil spill. There are also government loan programs available to those who have been impacted by the oil spill. Both of the options should be explored carefully before proceeding directly into claims or lawsuits.
Damages/Compensation
Business Interruption Insurance
In addition to the recovery against the responsible parties involved in the gulf oil spill, some businesses have a type of insurance coverage called “business interruption insurance.” Depending upon the wording in your insurance policy, you may have insurance coverage for your business loss claims. Typically, business interruption and related coverage in a property insurance policy limits protection to interruption of business which is caused by property loss or damage which was itself produced by a peril covered in the property protection provisions. This means that the cause for the business interruption must be covered under your policy. Coverage for these types of damages can appear in various forms under your business insurance policy. Please contact us to see if this could provide you with additional compensation for your losses.
Short Term Loans Under Federal Law
In addition to possible insurance coverage and any claims under OPA 90 or Florida law, you may also be entitled to a short-term loan from the government under OPA 90 for your losses. If you are a fishermen or aquaculture producer, then during the consideration of your claim you may be able to get a loan if you have: incurred damages for which claims are authorized; made a claim that is pending; and have not received any interim payment for the claim. The loans are for either five years or when payment is made on the claim, which ever is longer.
The federal Small Business Administration has started a program for Florida businesses that have been impacted by the oil spill. There is a website where you can see if you qualify for these loans and learn more about this option. The Disaster Loan program website has more information or you can contact the SBA Customer Service Center for businesses at :800.659.2955 or email: disastercustomerservice@sba.gov or the SBA Disaster Assistance Website. Contact us to see if you are eligible.