The state of Maryland is set to receive a $350 million insurance payment from Chubb for the collapse of the Francis Scott Key Bridge. The payment will come from a policy brokered by WTW, with the amount being the limit on the policy. While the payment will help cover some of the damages, it is only a fraction of the billions in damages and cleanup costs associated with the collapse caused by a cargo ship crashing into a support column.
Efforts to remove the wreckage and debris from the site have been ongoing, with 3,000 tons already removed and an estimated 50,000 tons still needing to be cleared. A unified government command has deployed over 350 workers from various agencies to Baltimore for the recovery and salvage efforts, along with 553 contract specialists involved in operations such as diving and crane work. The accident had initially closed much of the operations at the Port of Baltimore, but temporary channels have since been reopened to allow some ship traffic to resume.
The city of Baltimore has filed a legal claim against the owners and managers of the ship, Grace Ocean Private Limited and Synergy Marine PTE LTD, accusing them of providing an incompetent crew that lacked proper skills and training. The city is seeking unspecified damages from both companies, and Chubb may also file suit to seek reimbursement for the insurance payment it will be making to the state. The cause of the accident has yet to be officially determined, with a preliminary report from the National Transportation Safety Board expected next week, but a final report may take longer.
Chubb’s planned payment to Maryland was first reported by the Wall Street Journal, signaling that the insurance company will be honoring its policy for the bridge collapse. The payment will be made sooner rather than later, speeding up the process rather than waiting for the construction of a new bridge to begin. Despite the significant insurance payment, it will only cover a small portion of the total costs associated with the collapse, highlighting the massive scale of the damage and cleanup efforts needed following the incident.
