Two things: insurance is more powerful than the government to many companies.
Our small aviation charter business (5 planes) was doing pretty well, making a small percentage profit, then the insurance company presented us with a $1 million bill for the next 12 months, payable in 30 days, in full. No safety issues, no accidents, no warning.
We closed the business.
Osha, epa, etc are simply rules and regulations. Follow them or suffer the wrath of uncle sam.
But companies must carry lots of insurance, and insurance inspectors make osha, et al, look like boy scouts.
Like banks with loans, you do what they say, when they say, and how they say: immediately. When they say jump, your only reply is how high and which way.
Insurance has only a couple of underwriters such as Lloyd's at the top. Everyone ends up under the same umbrella, no matter who you purchase from.
Hodgdon likely saw rates go up beyond the cost of capital repairs, if not just simply canceled outright.
Millions, no doubt. Many, many millions to reopen.
I have a variety of issues with Hodgdon and I am not very fond of them.
But the reality is likely as I just described.
Even profitable, low debt (or even debt-free) companies rarely have millions sitting in their checking account.
Fewer yet will spend millions on a piece of paper that promises to cover your losses, but if a violation of their rules is found after an event, well, you get zip, nada, nothing.
Unrestrained civil suits and billion dollar law firms have driven us to this point.
And most politicians are lawyers.
Few are poor.