Billions in damage caused by bridge collapse in the port of Baltimore: Insurers face a challenge

Billions in damage caused by bridge collapse in the port of Baltimore: Insurers face a challenge

Experts estimate that many large insurers will share the foreseeable billions in damage caused by the bridge collapse in the port of Baltimore. Credit rating agency DRBS Morningstar says the insured loss could be between $2 billion and $4 billion, assuming the port company is insured against business interruption losses. Morningstar analysts emphasize that the damage is manageable for insurance companies because it is borne by a large number of companies.

Estimates suggest that rebuilding the Francis Scott Bridge alone will cost $1.2 billion. This could lead to rising prices for marine policies that are already burdened by previous events. The exact cause of the accident has yet to be determined, according to the Britannia P&I Club. Liability issues are likely to take years to resolve, as marine liability insurance covers damage caused by ships to fixed or floating objects.

The Port of Baltimore plays an important role in the auto industry, handling approximately 800,000 cars and light trucks last year. The impact of the bridge collapse could disrupt supply chains and impact business interruption policies. Although ship collisions have become less frequent in recent years, such events can still cause significant damage.