Insurance Industry Readies for Historic Losses From Baltimore Bridge Tragedy

Insurance Journal
03/29/2024

It’s very early in the recovery process and already the numbers are large.

Insured losses for the tragic collapse of the Francis Scott Key Bridge in Baltimore could be as much as $2 billion to $4 billion, according to Morningstar.

S&P Global Ratings estimates $3 billion, which would still make this tragedy the largest marine insurance loss ever recorded.

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Joshua Gold, a leader of the marine insurance practice for the law firm Anderson Kill, agrees that given the navigational problems evident from the videos, the ship owner is likely to be scrutinized but adds that all parties probably will be targeted.

Gold also thinks there could be some infighting before all is said and done.

“It is likely that the insurance and reinsurance companies will be jockeying over ultimate responsibility for the losses. Given the early reports of engine / power issues when the crew signaled mayday, the charterer may allege the fault lies with the vessel and its owners. Conversely, the owner may try to lay the fault with the pilot/captain/crew,” Gold told Insurance Journal.

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While the estimates of losses are running high, Anderson Kill attorney Gold told Insurance Journal he believes it is likely that the potentially culpable parties and their insurance companies will “explore the filing of limitation of liability lawsuits” to cap their exposure given the enormous cost of this “allision.” He uses the term allision which is the nautical term referring to when a vessel crashes or runs into another vessel that is stationary.

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Cyber Insurance Recovery Attorney | Anderson Kill P.C.
Joshua Gold
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New York

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