Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date.

Chubb, a prominent US insurance company, is set to pay $350 million to the state of Maryland following the collapse of Baltimore’s Francis Scott Key Bridge in March. 

This payout, confirmed by a spokesperson for WTW, the insurance broker, marks the beginning of what might be a record series of compensations within the shipping insurance sector, potentially totaling up to $4 billion.

This initial $350 million from Chubb is part of larger insurance payouts anticipated from various insurance and reinsurance companies. The $350 million paid by Chubb will represent the policy’s maximum coverage for the incident. Lloyd’s of London’s chief executive has urged quick payouts, emphasizing that the precise distribution of financial responsibility can be settled subsequently.

Chubb is not the only insurance company handling the cost alone; the loss is spread out across various insurers, including Hiscox and Lancashire, which confirmed their participation in quarterly updates. Both companies acknowledged their exposure but anticipated it to be “manageable.” 

The implications of the bridge’s collapse extend beyond immediate financial concerns. The US Army Corps of Engineers has been actively involved in creating temporary water channels to mitigate the impact on maritime traffic. A permanent solution to remove the Dali is reportedly scheduled for May 10, though it could change as crews continue to clear debris and bring special equipment in.