Maryland is on the verge of receiving a $350 million insurance payment linked to the collapse of the Francis Scott Key Bridge in late March, as per the broker managing its policy on the structure.
The payment is slated to originate from insurer Chubb, which holds a $350 million limit on the policy insuring the bridge, stated Henry Daar, head of property claims, North America for WTW, the broker overseeing the policy.
Rather than waiting for the construction of a new bridge, which could potentially take years to commence, the payment is expected to be expedited.
However, the insurance policy will only cover a fraction of the extensive damages and cleanup costs incurred due to the collapse on March 26, caused by the cargo ship Dali, a Singaporean-flagged container vessel, losing power and colliding with one of the bridge’s support columns.
The cleanup effort has thus far seen the removal of 3,000 tons of wreckage and debris from the site, according to the latest update from the unified government command directing the operation. An estimated 50,000 tons of wreckage still remain to be cleared.
More than 350 uniformed and civilian workers from 53 federal, state, and local agencies across the nation, along with 553 contract specialists, are actively engaged in various roles pertaining to dive, crane, and vessel operations, as reported by the unified command.
The accident prompted the temporary closure of a significant portion of the Port of Baltimore, resulting in vessels being stranded in the port.
To mitigate disruptions, four temporary channels have been reopened, allowing some resumption of ship traffic. As of a week ago, 171 commercial vessels have traversed the alternate channels, including five vessels that had been awaiting departure since March 26.
In response to the incident, the city of Baltimore initiated legal action against Grace Ocean Private Limited, the ship’s owner, and Synergy Marine PTE LTD, the ship’s manager.
The lawsuit alleges that both companies provided the vessel with an “incompetent crew” lacking adequate skill and training. Seeking unspecified damages from both entities, the city is pursuing legal recourse.
Additionally, Chubb might consider legal action to seek reimbursement for the insurance payout to the state.
Although the cause of the accident remains officially undetermined, the National Transportation Safety Board is expected to release a preliminary report as early as next week, with a final report potentially taking more than a year to be completed.
