Century 21 Wimco Realty, Inc. Blog

Sink: Prepare now for oil spill losses
TALLAHASSEE, Fla. – May 6, 2010 – Florida CFO Alex Sink outlined precautionary steps businesses should take if planning to claim damages resulting from the Deepwater Horizon oil spill.

“Empty restaurants, empty rental properties or empty stores resulting from this oil spill are the direct responsibly of BP, and that’s exactly who should pay for it,” says CFO Sink. “It is crucial that our small business owners keep meticulous records about their losses so that BP claims can be expedited.”

CFO Sink suggested the following items:

First: Make detailed records of cancelled reservations. News reports suggest that many condominium owners, hotels and restaurants are already seeing increased cancellations. “It’s important that when these cancellations occur, the cancelling party is questioned whether the cause is because of the oil spill,” says Sink. “If the answer is ‘yes,’ keep a record of the person’s name, contact information and revenues lost as a result of the cancellation.”
Second: Calculate estimated losses for a six-week period and keep all records, sales receipts and documentation to support the claim. A good idea would be to compare business now to a five-year average of revenues between May and June, which can offer insight as to the damages incurred.
Third: Make a detailed list of assets – including non-structural – and include appropriate records to support the list. Damage does not always have to be direct. If a hotel or restaurant is within walking distance of the beach and the oil hits that beach, it damages the business’ assets even without physical damage to the structure. “It’s important to record this depreciation,” Sink says.
Fourth: Be wary of insurance settlement scams. If starting to file a claim, make sure you deal with authorized representatives of BP and not scam artists; and be careful not to sign waivers of liability too quickly without legal and financial counsel.
In all circumstances, Sink says, affected businesses should file a claim with British Petroleum (BP Oil) via the hotline number – (800) 440-0858.

Additional guidance to help small businesses survive a disaster can be found at www.MyFloridaCFO.com or by calling (850) 413-3089 or toll-free at (877) MY-FL- CFO (1-877-693-5236).

“I’ve activated my consumer helpline to assist Florida business owners with questions about how this spill will impact their businesses,” says Sink. “Florida businesses can take steps now to help expedite delivering their claim to BP, as well as help themselves be ready to take advantage of federal and state aid that may become available for recovery.”

© 2010 Florida Realtors®