Improvements to the commercial large claims process have been made as a result of applying learning from the existing individual claims process, as well as consultations with local, state, Department of Homeland Security and United States Coast Guard officials.
- Issuing monthly advances based on estimates for one month’s business loss. Estimated payments will be made on a month forward (advance basis) rather than using a month “look back” process, thus reducing delays.
- Following initial monthly advances, future advances will be made for as long as legitimate financial losses relating to the Deepwater Horizon Incident are being incurred. These estimated payments will be adjusted for the actual losses incurred [in the previous month] versus the estimated losses paid in that month.
- A standard formula will be applied to calculate advances to ensure consistency and to expedite the process. The formula covers ongoing operating costs plus a 10% increase to account for volatility. Expected revenues will be subtracted from these costs to arrive at a resultant payment. Subsequent monthly advances will be adjusted to balance actual losses against previous estimated advance payments.
To date, BP has opened 25 claims offices and issued approximately 25,000 claims checks totalling $63 million.By the end of the week we expect to have paid out $85 million inclusive of these initial large loss claims payments.
To file a claim call 1-800-440-0858 or visit www.bp.com/claims.