Is compensation available to tourism businesses and workers for lost income or profits as a result of the Gulf oil spill?
Yes. Under the Oil Pollution act, if you've lost profits or income as a result of an oil spill, you may submit a claim for lost profits or earning capacity. For example, many hospitality and tourism businesses rely on coastal areas for their livelihood such as recreational fishing companies, marinas, businesses which take people on pleasure cruises around the harbor, coastal restaurants, hotels, wildlife excursions, and other tourism businesses.
The tourism industry on the Gulf Coast is a multi-billion dollar industry. With the oil spill, those businesses are facing millions of dollars in lost revenues. Under the law, businesses may submit a claim for compensation of commercial losses including loss of earnings/profits. Note, however, that only lost profits are covered, not lost revenues.
For example, if the Gulf oil spill caused the marina where your boat is docked, you could submit a claim for the profit you lost during the time the marina was officially closed. However, you could not receive payment for the revenue you typically bring in during the loss period; rather, you could claim the only amount of profit you typically earn (i.e, what is left over after deducting expenses from revenue).
Other Oil Spill FAQs
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Q:
What is the Oil Pollution Act of 1990?
A: The Oil Pollution Act (OPA) is the most comprehensive oil pollution legislation ever enacted in the United States. It provides that each party … More -
Q:
What legal remedies are available to individuals and businesses affected by the Gulf Oil Spill?
A: Under the Oil Pollution Act, companies responsible for an oil spill are liable for damages to individuals and businesses affected as a result. Commercial fishermen, … More -
Q:
I own or lease property damaged by an oil spill. Am I entitled to compensation for the damages?
A: If you own or lease property that was damaged by an oil spill, you may be able to receive compensation under the Oil Pollution Act (OPA). You may be … More -
Q:
My boat was damaged by the Gulf Oil Spill. Am I entitled to damages?
A: If you own or lease a boat that was damaged by the Gulf oil spill, you may have a claim for that damage under the Oil Pollution Act. For example, under the OPA, … More -
Q:
What is needed to file a claim for damages resulting from the Gulf Oil Spill with the National Pollution Funds Center?
A: To submit a claim for compensation with the NPFC for damages from the Gulf Oil Spill, the Oil Pollution Act requires you to submit the following: 1. Proof … More -
Q:
What is the Oil Spill Liability Trust Fund (OSLTF)?
A: The Oil Liability Trust Fund (OLTF) was created by Congress in 1986. When the Oil Pollution Act was put into place, it authorized the user of the Fund to pay … More -
Q:
Does the law limit the amount of money an oil company is liable for after an oil spill?
A: Section §1004 of the Oil Pollution Act provides: "The liability for tank vessels larger than 3,000 gross tons is increased to $1,200 per gross ton or … More -
Q:
If an oil company negligently caused an oil spill, then does the $75 million liability cap apply?
A: No. While the Oil Pollution Act limits the liability of a "responsible party" offshore oil rig to the total of all removal costs plus … More -
Q:
If I submit a federal claim for Gulf oil spill damages, does that mean I can't join a private or class action lawsuit?
A: If you've suffered property damage, loss of income, or other injuries as a result of the Gulf oil spill, you may have a claim for compensation. You … More
