Although it’s too early to determine the complete financial losses in conjunction with Tuesday’s bridge collapse in Baltimore, insurance companies are bracing for several billion dollars in claims. Underwriters will likely process claims across multiple product lines, including marine, cargo, property, trade credit, liability and contingent business interruption.
“While the total cost of the bridge collapse and associated claims will not be clear for some time, it is likely to run into the billions of dollars,” said Mathilde Jakobsen, senior director, analytics at insurance ratings agency AM Best.
The state of Maryland will also incur significant financial losses, perhaps up to $28 million in just one month, according to an IMPLAN analysis.
“The economic disruption and pain felt by businesses and individuals in Maryland and the Baltimore economic area will be widespread and likely take years to fully comprehend and compensate those affected,” said Julien Horn, partner, Ports & Terminals and Logistics, at insurance broker McGill and Partners.
