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).
Additional Gulf Oil Spill FAQs
- What is the Oil Pollution Act of 1990?
- What legal remedies are available to individuals and businesses affected by the Gulf Oil Spill?
- I own or lease property damaged by an oil spill. Am I entitled to compensation for the damages?
- My boat was damaged by the Gulf Oil Spill. Am I entitled to damages?
- What is needed to file a claim for damages resulting from the Gulf Oil Spill with the National Pollution Funds Center?
- What is the Oil Spill Liability Trust Fund (OSLTF)?
- Does the law limit the amount of money an oil company is liable for after an oil spill?
- If an oil company negligently caused an oil spill, then does the $75 million liability cap apply?
- If I submit a federal claim for Gulf oil spill damages, does that mean I can't join a private or class action lawsuit?