The state of Maryland is set to receive a $350 million insurance payment related to the collapse of the Francis Scott Key Bridge. The payment will come from insurer Chubb, which has a $350 million limit on the policy it had written on the bridge. This payment will be made soon rather than waiting for the construction of a new bridge to begin, which could take years. This policy will cover only a small fraction of the billions in damages and clean-up costs associated with the bridge collapse caused by a cargo ship, the Dali.
Efforts to remove wreckage and debris from the collapse site are ongoing, with 3,000 tons already removed for disposal or recycling. An estimated 50,000 tons of wreckage still need to be cleared from the site. More than 350 uniformed and civilian workers from 53 federal, state, and local agencies are deployed to Baltimore for recovery and salvage efforts, along with 553 contract specialists involved in various operations related to dive, crane, and vessel operations.
The accident temporarily closed much of the operations of the Port of Baltimore, with ships trapped in the port. Four temporary channels have since been reopened to allow some resumption of ship traffic, with 171 commercial vessels having transited the alternate channels as of a week ago. The city of Baltimore has filed a legal claim against Grace Ocean Private Limited and Synergy Marine PTE LTD, the companies that own and manage the ship involved in the collision, accusing them of providing the vessel with an incompetent crew.
The cause of the accident has yet to be officially determined, with a preliminary report from the National Transportation Safety Board expected to be released soon. A final report could take more than a year to complete. Chubb, the insurer, may also file a suit seeking reimbursement for the money it will have to pay the state. The planned payment from Chubb was first reported by the Wall Street Journal.
In conclusion, the insurance payment of $350 million from Chubb will provide some financial relief to Maryland for the damages and clean-up costs associated with the bridge collapse. Efforts to remove wreckage from the site are ongoing, with hundreds of workers and specialists involved in the recovery and salvage efforts. The city of Baltimore has filed a legal claim against the companies that own and manage the ship involved in the accident, seeking unspecified damages. The cause of the accident has yet to be determined, with a preliminary report expected soon. Chubb may also pursue legal action to recover the money it will pay to the state.
