Everyone has been hearing that the oil leak in the Gulf of Mexico is huge and could take several months to be plugged. Hurricane season is officially about to start. What happens if there is a major storm? No only will that affect the shoreline, any storm surge could carry oil inland. I am not a meteorologist however if a storm surge hits the coast of Florida or even goes up by the Gulf Stream up the east coast of United States, the impact could be devastating.
If you are thinking of retiring and your business is based on tourism, or access to a port, what happens if you are impacted by a tropical storm or hurricane? Do you have business interruption insurance? Would it cover you for oil spills?
If you are thinking of selling your business in 6 months and you could be impacted by the oil spill directly or indirectly, wouldn’t you be able to maximize the value of your business by selling now instead of waiting until it is too late? What happens if you are impacted by the oil spill. You could sue BP and take years before you get a settlement but will your business survive? If your business is based on tourism and the area is coated with oil, do you think that anyone would buy your business after the oil spill?
If you tried to sell your business before an oil spill impacted your business will that help or hurt any claim that you may have with BP or your insurance company?
Now you need to plan and possibly talk to your lawyer and insurance company, are you better to sell quickly if you believe that you may be impacted by an oil spill if a tropical storm or hurricane caused oil to devastate your area or are you better to make an insurance claim or lawsuit against BP if you are impacted? Should you buy insurance to protect yourself in case your business is closed? Will the insurance coverage be sufficient to cover this type of disasters?
Plan your actions regarding your business before it is too late to make a decision. This may include talking to lawyers and insurance companies in advance to create a contingency plan of action.