On Bloomberg, I gave a television interview regarding the legal and financial aspect of claims and lawsuits which are being generated as a result of the BP Oil Spill. Lost profit and business interruption claims and disputes are not novel to those of us with commercial first party insurance claims experience. Every Sunday, Michelle Claverol, in our Coral Gables office, posts about lost profit cases, which often involve complex accounting and economic issues. The BP Oil Spill is causing an epidemic of these financial loss claims, which will largely be brought as third party claims under the Oil Pollution Act of 1990.
Here is the interview:
I suspect that many insurance companies and their attorneys will be studying the nuances of the Oil Pollution Act claims process regarding first party claims. Many claims can be brought under various first party policies, depending on policy language. Subrogation claims by those insurers will also be made against BP — after first party losses are resolved with policyholders.
BP has created this monstrous mess. It will have a very big and long tail before it is over.