Insurance payout to begin for Baltimore bridge collapse

Chubb is set to pay the State of Maryland $350 million as part of its coverage of Baltimore’s destroyed Frances Scott Key Bridge, multiple news sources have reported, citing the policy’s broker.

That dollar amount is the reported limit on a Chubb insurance policy the state took out to cover the bridge, Henry Daar, head of property claims, North America for WTW, told The Wall Street Journal. The payment is forthcoming and will arrive in advance of reconstruction of the bridge, which could take years.

The 47-year-old bridge crumbled during the early morning hours of March 26, 2024, after a container ship struck one of its piers. Nearly all of its 1.6 miles of arched steel truss tumbled into the Patapsco River in an event Maryland Gov. Wes Moore called a “global crisis” as the catastrophe impacted roughly 8,000 jobs and caused a $15 million per day closure of the Port of Baltimore. Six people perished as a result of the bridge collapse, and at least one victim has yet to be recovered.

“We have said our number one directive is to bring dignified closure and comprehensive support to all of the families of the victims of the Key Bridge collapse,” Gov. Wes Moore said in a May 2 statement about the ongoing recovery effort. “We will continue our relentless search to recover every victim.”

A container ship dubbed the Dali was responsible for the event. It sailed under a Singaporean flag, was operated by Synergy Marine Group and owned by Grace Ocean Private Ltd. Maersk chartered the Dali for this fateful trip. The ship’s crew consisted predominantly of Indian nationals. The Dali reportedly suffered a “complete blackout” prior to slamming into the bridge, which was used by roughly 34,000 vehicles a day.

Although Chubb’s claim payout is speedy, it is expected to cover only a sliver of the cleanup and rebuilding effort in the wake of the accident. Thousands of pounds of wreckage have been removed from the river so far, and a great deal of cleanup is still necessary. Also, Chubb is but one of several insurance carriers likely to be impacted by this event.

See also:

• Baltimore bridge collapse disrupts supply chain, potential insurance impact
• 7 commercial insurance exposures from the Baltimore bridge collapse
• Baltimore bridge collapse may trigger historic marine loss, says Lloyd’s CEO