Gulf States and Businesses Acting Quickly Increase Chances of Insurance Recovery in Aftermath of Deepwater Horizon Oil Spill

WASHINGTON, May 18 /PRNewswire-USNewswire/ -- The following was released today by Gilbert LLP:

WHAT: It is crucial that Gulf state governments and businesses take quick and aggressive action to assess and pursue resources available to help them deal with the catastrophe of the Deepwater Horizon Oil Spill.

WHO: Richard Shore, a partner at Gilbert LLP, whose firm specializes in recovering insurance and other assets for mass disasters and mass torts, emphasizes the importance of focusing on asset recovery early in the crisis response effort.

"Given the billions of dollars in damages that are predicted here, insurers and the Oil Spill Liability Trust Fund will be inundated with claims," he said. "This is why it's important that anyone impacted by the spill be at the front of the line and actively manages the claims process from that vantage point – not simply throw their claim in and hope for the best."

WHY: Under the Oil Pollution Act, states and localities can recover a wide-range of costs, including cleanup costs, natural resource damages, increased costs of public services, and lost revenues. For example:

• Types of Claims:  States and businesses can recover against the "responsible party" or the Oil Spill Liability Trust Fund for removal costs incurred to clean up an oil spill. Removal cost claims against the "responsible party" are not subject to the caps set forth by the Fund, i.e. $75 million, for certain cases. Claims against the Oil Spill Liability trust Fund are subject to a $1 billion per-incident cap.  
  • Private parties can recover for property damage, lost income and profits, and the like.
• Insurance Coverage:  Various types of insurance may also be available to parties that suffer property damage or other economic consequences related to the spill.  These include, but are not limited to, first-party property coverage, business interruption and related types of coverage, and directors and officers coverage.  Parties sought to be held liable for the spill and its consequences also may have environmental coverage, third-party liability coverage, directors and officers' coverage, and errors and omissions coverage that may apply.
  • Other coverage may apply like crop, fishery loss or loss of revenue from tourism.

WHEN: Some immediate action steps, affected states and businesses should take as part of their broader crisis response efforts, include:

• Assessing, formulating, and pursuing state and local government claims for removal costs, natural resource damages, increased costs of public services, and lost revenues in connection with the spill.
• States providing information and some guidance to constituents (individuals and businesses) on what assets are available under the Oil Pollution Act; the applicable insurance policies to deal with the economic consequences of the spill; and how to best pursue them.

For more information on oil spill recovery options, please contact the following Gilbert LLP attorneys:

Richard Shore: (202) 772-2317

Scott Gilbert: (202) 772-2277

About Gilbert LLP

The lawyers at Gilbert LLP, with offices in Washington, D.C. and Austin, Texas, have extensive experience in recovering assets to deal with the consequences of mass torts, environmental matters and large-scale disasters including Hurricane Katrina and the Exxon Valdez oil spill. This includes federal programs dealing with oil spills and flood damage, as well as a broad range of insurance coverage.  The firm's focus is on the creative and aggressive pursuit of all potential avenues of asset recovery to deal with major losses and liabilities. For more information about Gilbert LLP, visit www.gotofirm.com.

SOURCE Gilbert LLP

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED