Baltimore Bridge Collapse: Estimated Insurance Loss Could Reach $3 Billion
A devastating bridge collapse in Baltimore, USA, has prompted predictions of the largest single marine insurance loss in history, according to statements from a British insurance marketplace.
Following a tragic incident where a ship collided with the bridge, leaving six people presumed dead and two bodies recovered by divers, experts estimate the damages could soar as high as $3 billion (£2.3 billion).
John Neal, CEO of Lloyd’s of London, emphasized the magnitude of the disaster, stating, “I would say it’s certainly going to be one of the largest marine losses in history.” He assured that while the financial impact is substantial, the affected port and ship are insured, providing a mechanism for compensation and claims settlement.
The Maryland Department of Transportation has urgently requested $60 million in emergency funds from the Biden administration to facilitate debris removal and cleanup efforts in the aftermath of the collapse.
However, the repercussions extend beyond the bridge’s collapse. The closure of the shipping lane, essential for global commerce, could incur additional losses of up to $15 million (£11.8 million).
Analysts at Barclays project that insurance claims from the incident might range from $1.2 billion for bridge damages to hundreds of millions for wrongful death fees, potentially totaling $3 billion.
With the Port of Baltimore ranking as the 14th largest in the US and handling significant foreign cargo valued at billions of dollars annually, the closure could disrupt global supply chains.
President Joe Biden has pledged federal support for the bridge’s reconstruction, acknowledging the critical need to restore operations swiftly. Maryland transportation officials have assured the public of ongoing efforts to expedite the bridge replacement process, emphasizing the importance of restoring normalcy to the affected community and port operations.
