Mike Briers, CPA

BP Oil Claims Information

Special to Florida Weekly

BP is setting up offices throughout the Gulf states to handle claims from Florida’s coastal residents and businesses for losses and damages incurred as a result of the Deepwater Horizon oil spill. Many southwest Florida businesses have already been adversely affected. Even though no oil has washed ashore here and none is expected, fishermen, boat charters, lodging, restaurants, wedding services, real estate agents, municipalities, and others have experienced business losses from reduced tourism, cancelled contracts, and public concerns over future oil damage.

What kinds of claims are covered?

BP will pay all legitimate claims for damages and necessary response costs resulting from the oil spill. This includes:

Real or personal property damage

Net loss of profits and earning capacity

Subsistence loss and natural resource damage

Oil removal and cleanup costs

Cost of increased public services

Net loss of government revenue

BP will also evaluate all claims for bodily injury, even though they are not payable under the Oil Spill Pollution Act of 1990.

Documenting a claim

You will need to provide a photo ID and various forms of documentation that support your specific loss. Below are some examples of the kinds of documentation that may be required, where applicable.

Loss of income or net profit claim. Tax forms and returns, description of how you were impacted by the incident, employer name, employer letter documenting the reason for loss of job, lost wages calculation, trip tickets, wage loss statements, deposit slips, boat registrations, and copies of your current fishing or business licenses.

Commercial economic loss claims. Business license number, description of your business and how it was impacted by the incident, in addition to past tax returns, profit & loss accounting statements, and business specific records. Ask canceling customers if their decision to cancel is oil-spill related—then track and document responses. Calculate estimated losses documented by sales receipts. Review prior year’s revenues to support historic revenues and estimate future trends.

Property damage claims. Photographs, video documentation, and cleaning or replacement receipts. You should make a photo or video inventory of property now, before any oil damages your property. Make a list of assets and include supporting records. Larger property damage claims may require on-site inspection by a claim adjuster.

First step is to file a claim

Help is available to individuals and businesses that can prove losses due to business interruption, loss of earnings, and property damage. The first place to start is by filing a single claim.

BEST way - Call 800-440-0858 or file on-line at www.bp.com/claims.

The claims processing will go more smoothly if you first call 1-800-440-0858 or go on-line at www.bp.com/claimsand obtain a case number. After you have a case number, an adjuster will contact you and help you determine the best way to substantiate your claim.

With a case number, call 800-573-8249 to:

·         Update your claim file if you incur additional damages

·         Check the status of your claim

·         Speak with an interpreter to file a claim

By mail.

ESIS

One Beaver Valley Road

Wilmington, DE 19803

Visit our local BP claims office with photo ID. 

4121 East Tamiami Trail

Naples, FL 34112

Open: 7 days/week, 8:00 a.m. to 6:00 p.m.

Telephone: 239-732-6207

Fax: 239-775-6459

 Small business emergency bridge loans are available

Florida has set aside $5 million for a Small Business Emergency Bridge Loan Program. It will provide emergency, interest-free bridge loans of up to $25,000 to established small businesses that have filed a BP claim. Repayment is required within a year and graduating penalties will be assessed on loans not repaid. For forms and more information, contact the Florida First Capital Finance Corporation (http://www.ffcfc.com) at (850) 681-3601.

Locally, the Florida Small Business Development Center (SBDC) is providing disaster assistance for businesses, including help with claims and bridge loan applications. Local SBDC offices are located in Port Charlotte, Cape Coral, Fort Myers, and Immokalee: 239.745.3700 or visit http://www.floridasbdc.org/SpecialPrograms/bcrm.

Protect your legal rights

Be extra vigilant when signing documents and accepting claims payments from BP to be sure you fully understand the long-term implications. While BP is not currently asking for waivers of future rights or claims, that could change in the future. It is simply too early to know the full extent of damages that may yet occur. Consult an attorney before signing any claims settlement documents, including signing and cashing claims checks that could inadvertently waive some of your legal rights.

Tax implications

Generally, payments for loss of income or profits are considered taxable income but may not be subject to Social Security taxes. Property damage payments will be taxable only to the extent they exceed your cost basis when added to present value. Your situation may fall outside these general guidelines, so you should discuss your circumstances with your tax accountant.  

Other helpful resources

IRS toll-free hotline: 866-562-5227, from 10 a.m. to 7 p.m.

·         Florida Dept. of Financial Services hotline to determine insurance coverage for lost revenues or help in filing a claim: 877-693-5236, 8:00 a.m. to 5:30 p.m. 

·         Florida State Emergency Response Team: http://www.floridadisaster.org.

BriersCPA is a full-service CPA firm located at 3301 Bonita Springs Road, Bonita Springs, FL 34134. For more information, visit http://www.brierscpa.comor call BriersCPA at 239-390-8882.