Maryland is close to receiving a $350 million insurance payout due to the collapse of the Francis Scott Key Bridge in late March. This payment, facilitated by broker WTW, is part of a policy with Chubb, which has a coverage limit of $350 million for the bridge.
The payout is imminent, bypassing the wait for bridge reconstruction, which could take years. However, it’s important to note that this amount covers only a fraction of the total damages and cleanup costs resulting from the collapse, which are estimated to be in the billions.
The collapse occurred on March 26 when a cargo ship, the Dali, lost power and collided with one of the bridge’s support columns. Since then, efforts have been underway to remove the wreckage and debris. While 3,000 tons have already been cleared, an additional 50,000 tons still remain to be removed.
A joint government command is overseeing the recovery and salvage operations, with over 350 personnel from various agencies deployed to Baltimore. Additionally, 553 contract specialists are actively involved in tasks such as diving, crane operation, and vessel handling.
The incident disrupted operations at the Port of Baltimore, temporarily halting ship traffic. Although four temporary channels have since reopened, allowing some vessels to resume transit, 171 commercial vessels have utilized these alternate routes as of the latest update.
In response to the collapse, the city of Baltimore has filed a legal claim against Grace Ocean Private Limited and Synergy Marine PTE LTD, the companies responsible for the ship involved in the accident. The claim alleges negligence in crew competence and training and seeks damages, the specifics of which are unspecified.
While investigations into the accident are ongoing, with a preliminary report expected soon from the National Transportation Safety Board, a final determination may take over a year. Chubb, the insurer, may also pursue legal action to recover the funds it will pay out to the state.
