A recent incident involving a massive cargo ship crashing into Baltimore’s Francis Scott Key Bridge is expected to result in billions of dollars in liability claims. The repercussions of this event will have significant financial implications, with marine insurance companies likely bearing a substantial portion of the costs.
The complex nature of the situation, involving multiple owners and companies, as well as navigating maritime laws that date back many years, will make determining responsibility and addressing damages a challenging task. According to John Miklus, the president of the American Institute of Marine Underwriters, the potential liability claims could exceed a billion dollars, and the ensuing litigation process is anticipated to be lengthy.
As the extent of the damages and the cost of rebuilding are still being assessed, estimates suggest that the value of the bridge alone could surpass $1.2 billion. Loretta Worters, a spokesperson for the Insurance Information Institute, highlighted that in addition to the bridge reconstruction costs, there will be expenses related to liability suits, medical bills for survivors, clean-up operations, and other associated expenditures.
Analysts at Barclays have projected that insurance claims stemming from the bridge collapse could range between $1 billion and $3 billion. They anticipate that claims related to the bridge damage could amount to approximately $1.2 billion, with additional liabilities for wrongful death expected to fall within the range of $350 to $700 million. The analysts also foresee the likelihood of business interruption claims that will further contribute to the overall financial impact of the incident.
