Page 87 - claims information pack ebook_e

Guidelines for presenting claims in the tourism sector

4. What losses are covered?

Property damage can claim compensation for the profit you
would have generated had the pollution
4.1 You can claim compensation for damage not occurred. You will need to show that
to property or equipment that has been the decline in trade is due to the fall in the
caused by contamination by oil from the number of visitors and tourists that normally
spill. For example, this may include beach use the now affected coast, sea and beach.
furniture or watersports equipment that you A decline in revenue alone may not be
were unable to move before it became oiled. sufficient to show that you have suffered
The compensation can be for cleaning or a loss due to the incident. This will require
repairing this equipment. If the equipment is that you show evidence that before the
too contaminated or damaged to be cleaned, incident you catered for visitors and tourists
you may claim for it to be replaced (although who used the affected resources and that
some allowance will need to be made for you also show the share of your total trade
10
wear and tear). You must, whenever possible, generated by tourists during a comparable
store damaged items that need to be period of time.
replaced until they have been inspected by a 4.4 Tourism and leisure trading levels can
representative of the 1992 Fund/shipowner’s vary from season to season for a variety
insurer. You must keep receipts or invoices of reasons, including a change of capacity
for any new equipment you buy or for any or tariffs, additional competition, changes
materials used for cleaning contaminated to the communication network, changes in
property. You may also wish to keep a the weather, natural disasters, variations
photographic record of the damage which in national holidays and changes in the
will help to explain and illustrate your claim. economy. These factors can lead to
Consequential loss variations in demand which is unrelated to
the pollution and their possible impact will
4.2 These are losses caused as a result of
contamination to your property. If your vessel be considered when assessing your claim.
or other business equipment or infrastructure 4.5 You may be able to claim for the cost of
has been contaminated by oil then you can actions that are aimed at preventing or
claim for the money you lose through not minimising economic losses. This will
being able to use the property until it has normally include marketing and promotional
been cleaned or replaced. However, it is your costs and other direct expenses necessary
responsibility to get back to normal as quickly to generate additional and/or replacement
as possible; the Fund might pay only for what revenue. This marketing activity is normally
it considers to be a reasonable period of time needed to show visitors that their fears
for you to resume normal business. The 1992 regarding the impact of the spill are not
Fund will compensate only for loss of profit, justified or that the impact of the pollution
and this will be calculated as explained in has been overcome. The objectives of the
subsequent paragraphs. marketing or other activity will need to be
explained within your claim and you will need
Pure economic loss to show that there was a realistic chance of
4.3 Even if your business has not been directly the promotional activity generating a greater
contaminated by oil, your trading may decline return than the associated costs incurred,
as tourists and leisure visitors decide to within the period when the business was
visit alternative areas. In this instance you affected by the spill. You must also keep