Baltimore Bridge Collapse Update: Insurer Chubb Preparing $350M Payout, But Is This Enough?

By Giuliano De Leon

May 02 2024, 15:47 PM EDT

It has been over a month ever since the Baltimore Bridge collapse happened. The bridge's insurer is preparing to make a million-dollar payout to Maryland. But is this enough?

Baltimore Bridge Collapse Update: Insurer Chubb Preparing $350M Payout, But Is This Enough? — US President Joe Biden arrives to speak about the collapse of the Francis Scott Key Bridge after it was struck by the container ship Dali, in Baltimore, Maryland, on April 5, 2024. BRENDAN SMIALOWSKI/AFP via Getty Images

Baltimore Bridge Collapse Update: Chubb Prepares To Make Payout

Gizmodo reported that Francis Scott Key Bridge's insurer, Chubb is preparing for a $350 million payout. Once it pushes through, it would be the first large payout in the debate over who has to settle for the incident.

The insured losses of the Baltimore Bridge are estimated to be between $2 billion and $4 billion. This is higher than the $1.5 billion insured losses of the Costa Concordia wreck in 2012.

Although Chubb's payout is less than half of Francis Scott Key Bridge's estimated insured losses, the insurer's effort was still commended.

"I give Chubb kudos for recognizing that this is clearly going to be a full-limits loss," said Baltimore Bridge broker WTW's Property Head Henry Daar via The Wall Street Journal.

About the Baltimore Bridge Collapse

According to The New York Times, the famous Baltimore Bridge collapsed on Mar. 26 after a giant container ship accidentally struck it down.

The DALI is owned by Grace Ocean Private and operated by Synergy Marine Group. Because of this, Maryland is planning to sue the container ship's owner and operator for the losses incurred by the bridge collapse.

In addition to the $350 million payout, Chubb is reportedly taking a proactive stance. The insurer is planning to assist the state in initiating legal action against Synergy Marine Group and Grace Ocean Private, further demonstrating its commitment to resolving the aftermath of the Baltimore Bridge collapse.