Hiscox and Lancashire Expect Minimal Insured Losses from Francis Scott Key Bridge Collapse

Hiscox and Lancashire, two Lloyd’s of London insurers, do not expect significant insured losses from the Francis Scott Key Bridge collapse in Baltimore in March. The collapse caused widespread disruption, but Hiscox stated that it was not directly affected by the business interruption policy for the port or the title insurance for the bridge. Both insurers believe that their potential exposure to the event is within their expectations.

Some estimates suggest that the total insured loss from the bridge collapse could be in the billions of dollars due to the loss of life, the cost of repairing the bridge, and rerouting traffic. However, both AXA and Lancashire, primary underwriters of the marine reinsurance policy, do not expect significant damage from the collapse. The owner of the Dali container ship that struck the bridge is looking to limit their liability to $43.6 million in a filing made on April 1.

Chubb, the insurer of the bridge, is preparing to pay $350 million to the state of Maryland. However, the spokesman for WTW, the broker of the bridge’s insurance policy, stated that Chubb declined to comment on the matter. Overall, insurers like Hiscox, Lancashire, and AXA do not anticipate major losses from the bridge collapse event, although the full extent of the financial impact is still uncertain.

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