Why are BP Claims being filed?
You may have heard fellow business owners or individuals talk about filing BP Claims for economic losses due to decreased revenue after the 2010 oil spill. The Deepwater Horizon Economic Settlement was put in place by BP and the US government to compensate businesses and individuals that took a loss of revenue or wages directly following the BP Oil Spill explosion. Not only was the environment devastated by this explosion, but many people took direct and indirect economic losses as a result.
How can I determine if my BP Claims are eligible?
BP and the US Government agreed to certain zones, revenue patterns and documentary needs to determine if the company or employee is qualified to file BP Claims. They maintain these strict parameters to prove the losses were a direct result of the oil spill and not just a factor of a general downturn in the economy. The determining factors of eligibility are explained below.
The First Step to Determine Eligibility
As determined by the Deepwater Horizon Settlement, a business’s address (or the address of a worker’s employer) must be located within one of the economic loss “zones.” These zones cover all of Alabama, Mississippi, and Louisiana, along with certain areas of Florida and Texas. At this time, if a business does not fall within a designated zone, it is ineligible to file a claim.
The Next Step to Determine Eligibility
When the settlement was being put into place, BP and the Government agreed that certain business and individual entities would be exempt from filing a BP Claim. The best way to determine eligibility of the nature of the business is checking the NAICS code. There are some major groups that are excluded and they include:
- Any business or individual that has already signed a full and final release with the GCCF
- Financial Intuitions
- Defense Contractors/Subcontractors
- Gaming Entities
- Insurance Entities
- Oil and Gas Industry Entities
- Entities selling or marketing BP-branded fuel, including jobbers and branded dealers
- Real Estate Developers, including those that develop commercial, residential, or industrial properties
- Governmental Organizations
- Funds, Financial Trusts, and Other Financial Vehicles
Providing Specific Documentation
Depending upon which zone the business falls within, the necessary paperwork will vary. However, all businesses will need to present at least 2009-2011 yearly tax returns and monthly profit and loss statements to abide by the terms of the settlement. For individual loss of wage claims, the worker should be able to provide w2’s, tax returns, payroll records, and if outside of Zone A, a sworn statement from the employer stating the employee’s cut in hours or income was a direct result of the oil spill.
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Eligible Revenue Patterns
Once the necessary documentation is gathered, the claim will need to be calculated to see if its financial records exhibit one of the valid revenue patterns. If outside of Zone A, the V-trend is the ideal revenue pattern. The V-trend is shown when the business shows solid income in specific months in 2009 and then takes a 15% decline in those same months in 2010. The business would then need to show a 10% incline in 2011 in the same months. If the business meets this criteria, their causation is presumed and they would not need to submit any additional paperwork.
When the BP Claims are determined complete and eligible, they are then ready to be filed to the settlement. At this time there is no time frame on exactly how long it will take to receive determinations on these claim. However, we check the status of all claims daily and notify the claimant as soon as we get any news. The majority of claims receive a final determination in 6 months to a year.
How Can We Help?
Our experts will help you determine your eligibility and prepare and process your claim for accuracy. We help with incompleteness notices, reconsiderations, re-reviews, appeals and denials. If you want to do things right the first time, begin your claim with us. Call today or complete the form on this page. We are experienced BP Claims processors that want to help get you the compensation you deserve.