Chubb prepares $350M payout for state of Maryland over bridge collapse

Chubb, the insurer of Baltimore’s Francis Scott Key Bridge, which collapsed in March, is preparing to issue a $350 million payout to the state of Maryland, as Rueters citing the Wall Street Journal on Thursday.

According to Henry Daar, head of property claims North America for WTW, the bridge’s broker, this payment is anticipated to be approved within the coming weeks.

This $350 million payout is speculated to be just the beginning of a series of payouts related to the disaster.

Analysts suggest that the total cost to insurers could reach up to $4 billion, marking it as a historic loss in shipping insurance.

The tragic event, resulting in the loss of six lives, unfolded when a Singapore-flagged container ship collided with the iconic bridge.

Chubb, alongside Maryland and the families of the victims, is likely to pursue legal action against the ship owner and other parties to recover losses incurred from the crash, according to the WSJ report.

Chubb refrained from commenting on the matter, while WTW has yet to respond to a request for comment from Reuters.