Back in 2016, The flint Businesses has seen some of the massive loss of revenues and damages due to the water crisis.
During that time, the president of the United States had to declare a state of emergency for this water crisis. As a result, the citizen of the city was eligible for the disaster aid from the federal fund. After a while, many actions were taken to make the supply of water much safer for Flint. But the damage the businesses took during that period was immense.
Most of the damage sustained by the businesses got no insurance coverage.
The whole thing started back in 2014. Before that, Flint user the water system from Detroit. But in 2014, they made the switch to draw water from the flint river. And without anyone’s knowledge, this led acidic water into various lead pipes. As a result, lead leaked into the drinking water channel through the city.
In the following months, the problem was noticed and flint switched back to the previous water system from Detroit in a hurry. But the damage was already made to the water system.
Thousands of residents already had been exposed to a dangerous amount of lead in their bodies. And the businesses that used lead plumbing faced corrosion from the Acidic level.
This resulted in an economic crisis that significantly impacted various businesses. Due to the flint water crisis, the businesses face a huge loss in sales and had to halt many operations. And the problems were even more serious for the hospitality businesses in the city.
Many restaurants and hotels had to close their operation for an uncertain amount of time. On the other hand, everyone had to buy bottled water for their daily use. The filter installation was a common cost that all the businesses had to face.
Even after the problem was solved, many businesses could not come back from the reputational damage they faced. Most of the restaurants that stayed open and opted for the new filtration system had to spend around 3000 US dollars for the installation process.
The reputational damage was something most businesses could not overcome. The health department has cleared Flint as a safe zone after the issues were resolved. But the media took a different path of portraying the city.
On most of the media stations, Flint was described as a war zone and a toxic contaminated hell. And due to this reason, everyone kept avoiding the place even after everything was fine.
General policies for business interruption did not cover the damage associated with the Flint water crisis as well.
Companies have later considered a new insurance policy that included lead damage in the paperwork. But the damage the businesses took could not be recovered in years.
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