The recent cargo ship crash into Baltimore’s Francis Scott Key Bridge is expected to result in billions of dollars in liability claims, with marine insurance companies bearing a significant portion of the costs. The complex nature of the incident, involving multiple owners and companies, as well as navigating through maritime laws that date back to before the Titanic sinking, will make determining responsibility and addressing damages a challenging task.
As the process unfolds, it remains unclear how much the final bill for damages and reconstruction will amount to. However, it is certain that insurers will be required to cover a substantial portion of the expenses.
The vessel involved in the crash, the Dali ship, is owned by Grace Ocean Private, a Singapore-based company, and insured by the Britannia Protection and Indemnity Club. Britannia is part of the International Group of P&I Clubs, a consortium that offers marine liability coverage for the majority of ocean freight and pools liability claims among its members.
These insurance companies are further supported by reinsurers, with approximately 80 different reinsurers providing around $3 billion in coverage to the insurers of the Dali ship. Moody’s analyst Brendan Holmes noted that due to the distribution of losses among numerous insurers, it is unlikely to result in bankruptcy for any of the companies or lead to a significant increase in insurance premiums.
