Chubb to Pay $350 Million in Claims for Baltimore Bridge Collapse

Chubb, the insurance provider for the Francis Scott Key Bridge in Baltimore, has agreed to a $350 million payout after the bridge’s collapse in March led to the deaths of six people and significant disruptions at the Port of Baltimore. The decision, as reported by The Wall Street Journal, comes as the insurer aims to quickly resolve claims without the prolonged costs of detailed assessments typically seen in such large-scale disasters. Henry Daar, head of US property claims at WTW, the bridge’s broker, expressed confidence in Chubb’s commitment to covering the full limits of liability.

This payout represents the initial financial response to a disaster that analysts believe could result in total insurance claims of up to $3 billion, marking it potentially the largest single maritime insurance loss ever. The collapse, caused by the Dali container ship striking the bridge, not only led to tragic loss of life but also an estimated economic impact of $15 million a day due to the shutdown of vital port operations.

Chubb, along with the state of Maryland and families of the victims, is expected to pursue legal action against the Dali’s owners, seeking further compensation for the extensive damages caused by the incident. This move underscores the complex web of legal and financial recovery efforts following major infrastructural failures.