Britannia Investigates Collapse of Francis Scott Key Bridge in Baltimore

Britannia, the insurer of the container ship Dali, is collaborating with the ship’s owner and U.S. authorities to investigate the collapse of the Francis Scott Key Bridge in Baltimore. The bridge collapsed after the Dali experienced a power outage and collided with a mast, causing significant disruption to the port. This incident is expected to lead to industry-wide insurance losses worth billions of dollars, potentially becoming the largest single loss in marine insurance.

Marine liability insurance, provided by protection and indemnity insurers like Britannia, covers damage and injury to the marine environment. The International Group of P&I Clubs, which collectively insures around 90% of the world’s maritime tonnage, has reinsurance protection up to $3.1 billion to handle claims. Reinsurers in the London market and major European players are likely to face claims related to the bridge collapse, with European reinsurers and Bermuda’s reinsurance market being at the most significant risk.

The disruption caused by the bridge collapse has led to over 30 ships being stranded in the port of Baltimore, with at least 10 commercial vessels waiting to enter. Tradepoint Atlantic’s terminal for car shipments has resumed full operations, with the first cargo arriving after the accident. The situation is being closely monitored by insurers and industry sources to determine the extent of the impact and potential liabilities for the involved parties.

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