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Insurer Chubb Readies $350M Payout Tied to Baltimore Bridge Collapse

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Chubb, which had insured Baltimore’s Francis Scott Key Bridge, is getting ready to pay $350 million to the state of Maryland, in what could be the first major payout tied to the collapsing of the bridge in March.

The payment is expected to be authorized within weeks, a spokesperson for WTW, the broker for the bridge’s insurance policy, confirmed on Thursday.

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The payout is likely to be the first of many related to the disaster that analysts have said might cost insurers up to $4 billion, making it a record shipping insurance loss.

Related: Lloyd’s Insurers Don’t Expect Large Claims From Baltimore Bridge Collapse

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During a call last month with analysts to discuss first quarter earning, Chubb CEO Evan G. Greenberg said of the bridge collapse: “Yeah, of course we had exposure.” He said the exposure is “within what [the insurer] would contemplate, and there is nothing outsized to us.”
“Another unfortunate claim. That’s all there is to it.”

The tragedy that killed six people occurred after a Singapore-flagged container ship collided with the landmark bridge.

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The FBI has also launched a criminal probe into the incident that led to the closure of one of the busiest U.S. ports

Plans for the $350 million payout were first reported by the Wall Street Journal, which said Chubb, along with Maryland and the families of the victims of the crash, will likely sue the ship owner and others to recoup losses from the crash.

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Chubb declined to comment to a Reuters request for comment.

The mayor and city council of Baltimore filed a lawsuit against the owner and operator of the ship last week, accusing them of negligence.

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Photo: The collapsed Francis Scott Key Bridge lay on top of the container ship Dali, Monday, April 15, 2024, in Baltimore. (AP Photo/Julia Nikhinson)

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