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Insurance cover for BP oil spill

Another insurance conundrum

Catriona Wells Catriona Wells
Sunday 13 June 2010

In one of life’s little ironies, a neighbour has just taken delivery of a new 4x4 for the school run.  She will deny the latter but cannot hide the fact that the big gas guzzler takes up the space of a small bus. 

I mention this not in terms of environmental damage or social mobility but in terms of her holiday plans. She, husband and brood are going to the Gulf coast of Florida for their holidays.NaplesBeach.jpg

This coast, of course, adjoins the pristine waters where, keen to meet her fuel hungry needs, BP had their recent mishap. Big alert – risk of oil on the beaches – find somewhere else to go.

Taking a less bitchy approach, I can see the problem if you have booked your holiday and topped up your tan only to see the white sand dotted with black oil and little Johnny covered in slime. Can you cancel? Will the insurance pay?

Well, probably not. Travel insurance generally covers cancellations caused by death and sickness in the family and wars etc where the Foreign Office (I always find that name confusing) advise you not to go.  Cancelling because you no longer like the look or sound of it will not qualify.

My neighbour apart, this is likely to be a conundrum for a number of families. In other areas, I would expect the travel companies to have contingency plans but the Gulf coast resorts tend to be dominated by self-bookers who will not have that protection.

At the moment, the contamination is limited to the northern shores and it is still a very long way away from the beautiful west coast (Tampa to Naples). Hopefully, it will stay that way but I still think she should buy a more sensible car. 

Petra Camden
Petra Camden
13 June 2010, 06:07PM

We do all share some responsibility. If we want fuel then it has to come from somewhere. There was probably a big celebration when BP discovered oil. Now everyone is running for cover.

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JimmyBarber
JimmyBarber, United Kingdom
13 June 2010, 06:17PM

This shows just how far the damages claim against BP will go. If people do stay away from that coast, a whole bunch of angry (and possibly greedy) business owners will put in claims for lost revenue. I do not know who insures BP but I bet the majority of the cost is going to fall on the UK.

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David S
David S, London
14 June 2010, 01:07PM

Apparently travel insurers have warned that cancellation cover will not apply to holidaymakers who scrap trips to Florida because of the huge BP oil spill in the Gulf of Mexico.

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Catherine
Catherine, Norwich
16 June 2010, 03:49PM

While I feel sorry for the many holidaymakers who will miss out on the lovely Florida sand because of the BP oil spill, there are plenty of other things you can do in Florida instead of visiting the beaches.

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Martin Pile
Martin Pile
18 June 2010, 05:48PM

BP's insurance should cushion the impact of the estimated $3 billion oil spill containment and clean up cost.

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Colin J
Colin J, London
23 June 2010, 10:45AM

BP has is clearly not equipped to deal with an ecological disaster of this magnitude. I heard of their proposal to stop the oil spill with human hair and golf balls, seriously? I really feel for the thousands of holiday makers and Florida residents who will suffer over this.

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Peter Worth
Peter Worth
24 June 2010, 04:55PM

The BP oil spill has changed holiday booking trends over the past month, pointing to holidaymakers adapting, with many choosing Mediterranean hotspots like the Balearic Islands and Canary Islands as an alternative destination to Florida.

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