Baltimore bridge cost could hit US$4 billion
- BTN News
- Thursday, 25 April 2024
Companies involved in the Dali container ship/Baltimore bridge collapse lawsuit in the US reportedly want to use a law passed in 1851* to limit their liability.
As we reported on April 20, the City of Baltimore intends to seek damages relating to the cost of replacing the bridge, clearing the Patapsco River and loss of taxes, among other expenses.
The collision that brought down Baltimore's Francis Scott Key Bridge on March 31 killed six bridge workers and left the Dali and its cargo tangled in the bridge wreckage.
The case has been called 'possibly the most expensive incident involving a ship collision for insurers in modern history'.
Brian Schneider of Fitch Ratings’ North America says he expects the Dali collision total cost to be between US$2-US$4 billion in insured losses.
Brian Schneider of Fitch Ratings’ North America says he expects the Dali collision total cost to be between US$2-US$4 billion in insured losses.
The insurance cover is complex. One firm is responsible for the bridge damage and any negligence by the Dali (through marine liability reinsurance cover for the vessel).
The Dali hull damage, pollution costs and cargo losses were insured separately as property cover.
Separate insurance products that cover business interruption costs for third parties also could add to totals - and the families of the six bridge workers who died could file their own lawsuit over the incident.
* There is an 1851 US maritime law called the Limitation of Liability Act that caps a ship’s liability to the post-accident value of the boat and its cargo.
Famously, the act was used by Titanic owner the Star Line to limit its payout after that ship sank in 1912.
In the Dali/Baltimore case, a post-accident Dali value as low as US$45 million has been mentioned.
