Tag Archives: Oil Spill

Florida Businesses Denied By the Gulf Coast Claims Facility Have New Hope

When Kenneth Feinberg set up the protocol for distributing the funds to oil spill victims, he wrongly included geographic proximity as a consideration. This consideration directly conflicted with the Oil Protection Act, and many claims submitted by Florida businesses impacted by the oil spill were wrongfully denied. Thanks to Alex Sink, Charlie Crist, and Bill … Continue Reading

Understanding Valuation Issues of Gulf Oil Spill Claims

A paper, "Understanding Valuation Issues of Gulf Oil Spill Claims," will be delivered by me in Atlanta on Thursday. For those interested in the business interruption and lost income coverage disputes that Michelle Claverol writes about on this blog every Sunday morning, you’ll love the paper. For those of you that simply want to know … Continue Reading

Oil and Hurricanes: Here Comes the One Two Punch

Could there be a worse time to have a hurricane or tropical storm than the summer and fall of 2010? Given the extraordinary warmth of water this early in the hurricane season and the ongoing BP oil spill catastrophe, policyholders and public officials need to start taking immediate steps to prepare for two catastrophes which … Continue Reading

Oil Spill Accounting and Damages: The Team Approach to Determine Business Interruption Claims

The proper determination of more significant oil spill commercial lost profit and earning capacity claims must be approached very similarly to business interruption catastrophe claims. The best approach for larger or more complex claims is through a team of specialists. A business client can only be properly represented and fully indemnified through a collegial debate … Continue Reading

Is BP Hiring Ignorant Claims Handlers with Little Dollar Authority to Pay Claims?

Dimechimes ClaimSmentor had an interesting post on its blog which partially supports my opinion that the BP claims process has an insufficient number of qualified people attempting to figure out and pay the full amount owed to those damaged by BP. An Open Letter to Admiral Thad Allen, President Obama, White House News Correspondents, ESIS Insurance, … Continue Reading

How to Value an Oil Spill Claim–Not an Easy Task

The lost profit and earning capacity commercial claims arising from the BP oil spill are not easy calculations. BP should not hire liability and casualty adjusters to determine these claims, as they are now doing. In my experience, the vast majority of these adjusters do not know what they are doing when it comes to … Continue Reading

Will Homeowner Policies Cover Oil Spill Claims?

Jay MacDonald, of Bankrate.com, read a number of our posts and interviewed me regarding insurance coverage issues pertaining the BP Oil Spill. In his insurance blog post, Will Homeowners Insurance Absorb Oil?, he noted a number of my observations concerning the major issues facing policyholder insurance claims resulting from the BP Oil Spill:… Continue Reading

Broken Tile Claims, Oil Spill Issues and Internet Problems

I receive a fair amount of private emails regarding certain posts. Yesterday, I received about fifty saying that this Blog was “down.” Thanks. This blog is hosted by LexBlog and this was their explanation: The issue, arising out of the software interfacing with our cloud server environment was identified, and repaired. We do not expect any … Continue Reading

Accountants and Business Interruption Experts Will Play an Important Role Recovering BP Oil Spill Income Loss Claims

The tragedy of loss of human life and damage to the environment when discussing the BP Oil Spill cannot be overstated. The important role that accountants and business interruption experts will play helping prove financial loss cannot be overstated either. Experienced professionals like Bob Glasser, noted in yesterday’s Are Lawyers Pandering for BP Oil Spill Clients … Continue Reading

Are Lawyers Pandering for BP Oil Spill Clients Going to Get Sued for Malpractice in Follow-up Class Actions? A Guest Blog Regarding Business Claims By Bob Glasser Explains

There has been a disgraceful amount of pandering by potentially incompetent lawyers to sign up BP Spill Victims. Many of these lawyers are experienced only in personal injury cases, and many are not licensed in the affected states and are using the internet to lure clients. One attorney from California, who is not licensed in … Continue Reading

BP’s “Cascade of Failures” Began Before the Oil Spill

During the Congressional hearings, Senator Jeff Bingaman, Chairman of the Energy and Natural Resources Committee, said: If this is like other catastrophic failures of technological systems in modern history, whether it was the sinking of the Titanic, Three Mile Island, or the loss of the Challenger, we will likely discover that there was a cascade … Continue Reading

Oil Spill Insurance Claims Will Be Messy and is Oil a Pollutant?

This morning’s edition of Business Insurance has an article, Claims Could Get Messy After Huge, Costly Oil Spill, which explains that insurance claims are going to be complex and that the cost will certainly be in the billions. My reading of a FC&S discussion on the issue of "pollution" exclusions in homeowners policies indicates the same … Continue Reading

First Party Property Coverage for the Oil Spill to Shoreline Owners

First party property coverage may exist under some common form property insurance policies for losses caused by the oil spill. While I have been rather pessimistic regarding the possibility of first party insurance companies sending legions of claims adjusters to help oil catastrophe policyholders, there appears to be some coverage available, and possibly, a lot … Continue Reading

BP Promises To Pay “Legitimate Claims” But Leaves Room For Maneuvering

It appears that BP and others involved in the current oil spill may be taking their cues from insurance carriers. Insurers have always hedged their bets by saying that they would pay “legitimate claims” after disasters such as Hurricane Katrina and the Northridge Earthquake. This is a brilliant public relations strategy. It allows top executives … Continue Reading

BP Oil Spill Could Be Worse Than Any Hurricane Damage and Much More Widespread–Even the East Coast of Florida Could Be Impacted

I hate to make doomsday predictions, but there is a possibility that the BP Oil Spill could be worse than any hurricane or catastrophe that I have been involved with. I spent yesterday speaking with others about the current situation. Indeed, my father teaches those in the oil industry how to recover and react to … Continue Reading