Businesses Bridge Troubled Waters: Legal Challenges After Maryland Bridge Collapse

In Maryland, the collapse of the Francis Scott Key Bridge has had far-reaching effects. The incident didn't just tragically claim lives; it disrupted the very rhythm of local and broader economies. With the Baltimore harbor now inactive, businesses are grappling with the realities of altered traffic flows and fragmented supply chains.

Business and commerce disruption due to bridge and harbor shutdown

The sudden loss of this vital infrastructure piece has triggered a domino effect across various sectors. Retailers are now facing inventory shortages, manufacturers lack essential materials, and service providers are struggling to fulfill client commitments.

This disruption has not only resulted in revenue dips but also spiked operational costs as businesses scramble to find shipping alternatives and carve out new transport routes.

The bridge collapse has thrown local supply chains into chaos and blocked customer access, leading to:

• Lost revenue: Retailers, manufacturers, and service providers are experiencing significant income drops.
• Increased expenses: Finding alternative transportation and accelerating shipping incur high costs.
• Spoilage and waste: Transport delays mean perishable items may spoil, impacting food-related businesses.
• Employee costs: Reduced business may necessitate cutting work hours or staff.

Understanding business interruption insurance

Business interruption insurance (BI) could be crucial for these challenging times, yet claiming it is rarely straightforward. Businesses might face issues like:

• Policy coverage: Understanding the specifics of BI policies is essential to ascertain coverage for the bridge collapse.
• Loss calculations: It's crucial to meticulously document the economic effects of the disruption for insurance claims.
• Denial of coverage: Insurers may refuse claims based on technicalities, possibly leading to legal disputes.
• Force majeure clauses: These contractual provisions might excuse parties from their duties due to unforeseen events, requiring careful legal interpretation.

Beyond insurance: Other legal risks

The bridge's failure can also lead to broader legal implications for businesses:

• Product liability: Businesses failing to deliver on time due to the collapse could be liable for any resulting product damage or spoilage.
• Contractual disputes: Inability to meet contractual obligations due to the incident might lead to legal disagreements.

The fallout from the bridge's failure extends beyond insurance headaches. Companies might face legal challenges such as product liability for delayed deliveries and contractual disputes due to unmet obligations. To mitigate the financial and legal impacts of the bridge collapse, businesses should:

• Consult with legal experts: Obtaining advice from attorneys specializing in business law is crucial for assessing the situation, understanding insurance coverages, and guiding through the claims and recovery process.
• Keep detailed records: Documentation of financial impacts, additional costs, and insurance interactions is essential for supporting claims and legal actions.
• Work with insurance firms: Expert negotiation can be necessary to secure equitable settlements from insurance providers.
• Consider litigation if needed: Legal representation may be required to achieve fair compensation through the courts.

Proactive measures

As insurance firms brace for claims that could total up to $4 billion, affected businesses and individuals face the challenging task of financial recovery and might need considerable support.

If your employment or business—be it retail, wholesale, or another sector—is intertwined with industries reliant on the bridge and port, or if these closures have disrupted your access to customers, you may want to consider exploring legal avenues to mitigate the impact on your operations and secure necessary compensation for your losses.