BP settlement Calculation

BP Settlement Calculation

BP settlement Calculation is something that will come soon when we know the final model for calculating BP settlement payouts.

If you have multiple BP settlement claims you would need to calculate each claim separately and then add them together to get you your final BP settlement number.

So today I finally was able to put the numbers together and find out what the multiplier for each group of claims will be.

This is what I hear, its still not in a final state so the multiplier could change some before its final.

What is Risk Transfer Premium In BP Settlement Calculations

To understand what amount you will be offered from the BP Settlement Process you first have to understand the Risk Transfer Premium that are being use to calculate both business and individual claims in the BP settlement process.

So to calculate future risk of the same loss to acure again in risk transfer premium (RTP) the base loss is added back in to the final loss number.

Its sounds cryptic but its very simple when we take an example.

Business loss $100,000 in 2010 compared to same 2009 now with a RTP of 2.0 will give us this calculation.

100,000 x 2.0 = 200,000 + 100,000 (base loss) = 300,000

So to make it easier we are just going to make this a multiplier.

RTP of 1.0 will be a multiplier of 2.0

RTP of 2.0 will be a multiplier of 3.0

RTP of 2.5 will be a multiplier of 3.5

Individual BP Claims Multipliers For BP Settlement

Here is what I have figured out as proposed multipliers for an individual claim in the BP Settlement

Employees In Tourist Industry

BP Settlement Claim TypeBP Settlement RTP and Multiplier
BP Settlement Claim TypeBP Settlement RTP and Multiplier
Employed by Tourist Industry Zone AEmployed by business satisfying the Tourism Definition and located in Zone A -- RTP is 2.50. Multiplier of 3.50
Employed by Tourist Industry Zone BEmployed by business satisfying the Tourism Definition and located in Zone B-- RTP is 2.00. Multiplier of 3.00
Employed by Tourist Industry Zone CEmployed by business satisfying the Tourism Definition and located in Zone C-- RTP is 2.00 Multiplier of 3.00
Employed by Tourist Industry Zone DEmployed by business satisfying the Tourism Definition and located in Zone D -- RTP is 1.25. Multiplier of 2.25

Employee In Seafood Industry

BP Settlement Claim TypeBP Settlement RTP and Multiplier
BP Settlement Claim TypeBP Settlement RTP and Multiplier
Employed by business satisfying the Primary Seafood Processor Zone A, B,C, DEmployed by business satisfying the Primary Seafood Processor Definition in the Seafood Distribution Chain Definitions who processes Shrimp/Crab/Oyster and is located in Zone A, Zone B, Zone C or Zone D -- RTP is 3.00. Multiplier is 4.0
Employed by business satisfying the Primary Seafood Processor other than Oyster/crab/shrimp Zone A, B,C, DEmployed by business satisfying the Primary Seafood Processor Definition in the Seafood Distribution Chain Definitions who processes Seafood other than Shrimp/Crab/Oyster and is located in Zone A, Zone B, Zone C or Zone D -- RTP is 2.25. Multiplier 3.25
Employed by business satisfying the Landing Site or Commercial Wholesale or Retail Dealer Zone A,B,C,DEmployed by business satisfying the Landing Site or Commercial Wholesale or Retail Dealer A Definitions in the Seafood Distribution Chain Definitions and is located in Zone A, Zone B, Zone C or Zone D -- RTP is 2.25. Multiplier 3.25
Employed by business satisfying the Commercial Wholesale or Retail Dealer B, Secondary Seafood Processor, Seafood Wholesaler or Distributor, or Seafood Retailer Zone A,B,C,DEmployed by business satisfying the Commercial Wholesale or Retail Dealer B, Secondary Seafood Processor, Seafood Wholesaler or Distributor, or Seafood Retailer Definitions in the Seafood Distribution Chain Definitions and is located in Zone A, Zone B, Zone C or Zone D -- RTP is 2.25. Multiplier 3.25

Employed Charter Fishing

BP Settlement Claim TypeBP Settlement RTP and Multiplier
BP Settlement Claim TypeBP Settlement RTP and Multiplier
Employed by business satisfying the Charter Fishing Definition and located in Zone A, Zone B or Zone CEmployed by business satisfying the Charter Fishing Definition and located in Zone A, Zone B or Zone C -- RTP is 2.50. Multiplier 3.50
Employed by business satisfying the Charter Fishing Definition and located in Zone DEmployed by business satisfying the Charter Fishing Definition and located in Zone D -- RTP is 1.25. Multiplier 2.25

 Non Tourist and Non Seafood employees

BP Settlement Claim TypeBP Settlement RTP and Multiplier
BP Settlement Claim TypeBP Settlement RTP and Multiplier
Employed Non-Tourism and Non-Seafood Business in Zone A Employed by Non-Tourism and Non-Seafood Business in Zone A -- RTP is 1.50. Multiplier 2.5
Employed Non-Tourism and Non-Seafood Business in Zone B Employed by Non-Tourism and Non-Seafood Business in Zone B -- RTP is 1.25 Multiplier 2.25
Employed Non-Tourism and Non-Seafood Business in Zone C Employed by Non-Tourism and Non-Seafood Business in Zone C -- RTP is 0.25 Multiplier 1.25
Employed Non-Tourism and Non-Seafood Business in Zone D Employed by Non-Tourism and Non-Seafood Business in Zone D -- RTP is 0.25 Multiplier 1.25

 

Business BP Claims Multipliers For The BP Settlement

I will split up the multipliers per industry and try and make it as easy to look at as possible.

Tourist Industry

BP Settlement Claim TypeBP Settlement RTP and Multiplier
BP Settlement Claim TypeBP Settlement RTP and Multiplier
Tourist Business Zone ABusinesses satisfying the Tourism Definition and located in Zone A -- RTP is 2.50 Multiplier 3.5
Tourist Business Zone BBusinesses satisfying the Tourism Definition and located in Zone B -- RTP is 2.00. Multiplier 3.0
Tourist Business Zone CBusinesses satisfying the Tourism Definition and located in Zone B -- RTP is 2.00. Multiplier 3.0
Tourist Business Zone DBusinesses satisfying the Tourism Definition and located in Zone B -- RTP is 1.25. Multiplier 2.25

 Charter Fishing Industry

BP Settlement Claim TypeBP Settlement RTP and Multiplier
BP Settlement Claim TypeBP Settlement RTP and Multiplier
Charter Fishing Industry Zone ABusinesses satisfying the Charter Fishing Definition and located in Zone A, RTP is 2.50. Multiplier is 3.50
Charter Fishing Industry Zone BBusinesses satisfying the Charter Fishing Definition and located in Zone B, RTP is 2.50. Multiplier is 3.50
Charter Fishing Industry Zone CBusinesses satisfying the Charter Fishing Definition and located in Zone C RTP is 2.50. Multiplier is 3.50
Charter Fishing Industry Zone DBusinesses satisfying the Charter Fishing Definition and located in Zone C RTP is 1.25. Multiplier is 2.25

Primary Seafood (Shrimp, Oyster, Crab)

BP Settlement Claim TypeBP Settlement RTP and Multiplier
BP Settlement Claim TypeBP Settlement RTP and Multiplier
Primary Seafood Industry Zone ABusinesses satisfying the Primary Seafood Processor Definition in the Seafood Distribution Chain Definitions who process Shrimp/Crab/Oyster and are located in Zone A RTP is 3.00. Multiplier is 4.0
Primary Seafood Industry Zone BBusinesses satisfying the Primary Seafood Processor Definition in the Seafood Distribution Chain Definitions who process Shrimp/Crab/Oyster and are located in Zone B RTP is 3.00. Multiplier is 4.0
Primary Seafood Industry Zone CBusinesses satisfying the Primary Seafood Processor Definition in the Seafood Distribution Chain Definitions who process Shrimp/Crab/Oyster and are located in Zone C RTP is 3.00. Multiplier is 4.0
Primary Seafood Industry Zone DBusinesses satisfying the Primary Seafood Processor Definition in the Seafood Distribution Chain Definitions who process Shrimp/Crab/Oyster and are located in Zone D RTP is 3.00. Multiplier is 4.0

Primary Seafood (Other)

BP Settlement Claim TypeBP Settlement RTP and Multiplier
BP Settlement Claim TypeBP Settlement RTP and Multiplier
Primary Seafood Industry (Other) Zone ABusinesses satisfying the Primary Seafood Processor Definition in the Seafood Distribution Chain Definitions who process Seafood other than Shrimp/Crab/Oyster and are located in Zone A RTP is 2.25. Multiplier is 3.25
Primary Seafood Industry (Other) Zone BBusinesses satisfying the Primary Seafood Processor Definition in the Seafood Distribution Chain Definitions who process Seafood other than Shrimp/Crab/Oyster and are located in Zone B - RTP is 2.25. Multiplier is 3.25
Primary Seafood Industry (Other) Zone CBusinesses satisfying the Primary Seafood Processor Definition in the Seafood Distribution Chain Definitions who process Seafood other than Shrimp/Crab/Oyster and are located in Zone C - RTP is 2.25. Multiplier is 3.25
Primary Seafood Industry (Other) Zone DBusinesses satisfying the Primary Seafood Processor Definition in the Seafood Distribution Chain Definitions who process Seafood other than Shrimp/Crab/Oyster and are located in Zone D - RTP is 2.25. Multiplier is 3.25

Seafood Landing Site or Commercial Wholesale or Retail Dealer

BP Settlement Claim TypeBP Settlement RTP and Multiplier
BP Settlement Claim TypeBP Settlement RTP and Multiplier
Seafood Landing Site or Commercial Wholesale or Retail Dealer Zone ABusinesses satisfying the Landing Site or Commercial Wholesale or Retail Dealer A Definitions in the Seafood Distribution Chain Definitions and are located in Zone A -RTP 2.25 Multiplier 3.25
Seafood Landing Site or Commercial Wholesale or Retail Dealer Zone BBusinesses satisfying the Landing Site or Commercial Wholesale or Retail Dealer A Definitions in the Seafood Distribution Chain Definitions and are located in Zone B -RTP 2.25 Multiplier 3.25
Seafood Landing Site or Commercial Wholesale or Retail Dealer Zone CBusinesses satisfying the Landing Site or Commercial Wholesale or Retail Dealer A Definitions in the Seafood Distribution Chain Definitions and are located in Zone C -RTP 2.25 Multiplier 3.25
Seafood Landing Site or Commercial Wholesale or Retail Dealer Zone DBusinesses satisfying the Landing Site or Commercial Wholesale or Retail Dealer A Definitions in the Seafood Distribution Chain Definitions and are located in Zone D -RTP 2.25 Multiplier 3.25

Wholesale or Retail Dealer B, Secondary Seafood Processor

BP Settlement Claim TypeBP Settlement RTP and Multiplier
BP Settlement Claim TypeBP Settlement RTP and Multiplier
Commercial Wholesale or Retail Dealer B, Secondary Seafood Processor Zone ABusinesses satisfying the Commercial Wholesale or Retail Dealer B, Secondary Seafood Processor, Seafood Wholesaler or Distributor, or Seafood Retailer Definitions in the Seafood Distribution Chain Definitions and are located in Zone A RTP is 2.25. Multiplier is 3.25
Commercial Wholesale or Retail Dealer B, Secondary Seafood Processor Zone BBusinesses satisfying the Commercial Wholesale or Retail Dealer B, Secondary Seafood Processor, Seafood Wholesaler or Distributor, or Seafood Retailer Definitions in the Seafood Distribution Chain Definitions and are located in Zone B RTP is 2.25. Multiplier is 3.25
Commercial Wholesale or Retail Dealer B, Secondary Seafood Processor Zone CBusinesses satisfying the Commercial Wholesale or Retail Dealer B, Secondary Seafood Processor, Seafood Wholesaler or Distributor, or Seafood Retailer Definitions in the Seafood Distribution Chain Definitions and are located in Zone C RTP is 2.25. Multiplier is 3.25
Commercial Wholesale or Retail Dealer B, Secondary Seafood Processor Zone DBusinesses satisfying the Commercial Wholesale or Retail Dealer B, Secondary Seafood Processor, Seafood Wholesaler or Distributor, or Seafood Retailer Definitions in the Seafood Distribution Chain Definitions and are located in Zone D RTP is 2.25. Multiplier is 3.25

 Non-Tourism and Non-Seafood Businesses

BP Settlement Claim TypeBP Settlement RTP and Multiplier
BP Settlement Claim TypeBP Settlement RTP and Multiplier
Non-Tourism and Non-Seafood Industries Zone ANon-Tourism and Non-Seafood Industries Zone A RTP is 1.50. Multiplier 2.50
Non-Tourism and Non-Seafood Industries Zone BNon-Tourism and Non-Seafood Industries Zone B RTP is 1.25 multiplier is 2.25
Non-Tourism and Non-Seafood Industries Zone CNon-Tourism and Non-Seafood Industries Zone C RTP is 0.25 Multiplier is 1.25
Non-Tourism and Non-Seafood Industries Zone DNon-Tourism and Non-Seafood Industries Zone D RTP is 0.25 Multiplier is 1.25

Other Business scenarios

BP Settlement Claim TypeBP Settlement RTP and Multiplier
BP Settlement Claim TypeBP Settlement RTP and Multiplier
Start-up Business ClaimsRTPs are the same as for Business Economic Loss Claims
Failed Business ClaimsNo RTP.. As failed business is compensated in a different way please see BP settlement for failed business
Failed Start-up Business ClaimsNo RTP. As failed Start-up are compensated in a different way please BP settlement for failed start-up business
Multi-Facility BusinessThe RTP is determined per Business Economic Loss Claims as applied through the Compensation for Multi-Facility Businesses framework.

 

A note for the people that are reading this, I have read the 1,022 page BP Settlement agreement as its not as simple as I try and make it here with the multipliers there are a lot of other information that you need to know to determine if the BP settlement is good for you or not. I would highly recommend that you retain an attorney to do this work for you and to submit your claim for you.

This should give you a good baseline for the new BP settlement and the calculation model that will be used.

Sign up with an attorney on the right by using the form to get started on the BP settlement.

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