Lewis Campion, president and CEO of the Maryland Motor Truck Association, discusses the impact of the Francis Scott Key Bridge collapse on trucks and transportation routes on “The Bottom Line.”
Total insurance claims payable as a result of the Francis Scott Key Bridge collapse in Baltimore will likely reach billions of dollars, ultimately making it the largest marine insurance payout in history, surpassing the 2012 Costa Concordia disaster. It could be the amount. $1.5 billion was paid.
Insurance claims procedures are expected to become more complex, involving a variety of parties, and who is responsible will be an important factor in determining who receives what payment.
8 construction workers, all from hometowns Central America, The Singapore-flagged container ship Dali collided with a bridge, causing it to collapse and plummeting into the sea. Two people were rescued after the collapse. Divers recovered the bodies of two others, and the remaining four are presumed dead.
Could a protective fence have prevented the Baltimore Bridge from collapsing?
Francis Scott Key Bridge and Dali Freighter, photographed March 29, 2023. (Kevin Dietsch/Getty Images/Getty Images)
Experts say that while these deaths and injuries form one pathway for claims, the collapse itself, including the economic ramifications of rebuilding or destroying the bridge, forms another multi-layered claims pathway. It is said that it will be done.
The port, which was closed due to the fatal crash, is the busiest in the U.S., handling more than 750,000 vehicles in 2023, according to data from the Maryland Port Authority. It is also the largest port in the United States, handling not only agricultural products but also agricultural and construction equipment.
It handled a record amount of cargo last year, ranking it as the nation’s 20th largest port by gross tonnage, according to the Bureau of Transportation Statistics.
According to Transportation Secretary Pete Buttigieg, about 30,000 vehicles used to cross the bridge each day. He told America’s Newsroom on Wednesday.Interstate 695, which once crossed the bridge, connected Washington, Baltimore, Philadelphia and New York, so its closure affects vehicle traffic and trucking.
Global credit rating agency Morningstar DBRS said the tragedy could result in insurance claims of up to $4 billion, nearly three times the amount of the Concordia disaster.
Adrian Azer of the Washington, D.C.-based law firm Haynes & Boone told Fox News Business that damages for the Baltimore tragedy could easily rival those for the Concordia. He said there are various factors and issues that need to be resolved.
“At this point, it’s really unclear whether it will match Concordia. It could certainly be more, but it’s probably too early to estimate the amount,” Azel said. “There are a lot of insurances that could be involved. It takes years to resolve the insurance. It’s a long process. It’s not just about property damage, it’s going to be a question of sharing liability… for bodily injuries. for [of the victims]. ”
Baltimore Bridge Collapse: Economists Predict Inflation Will ‘Pinch’ American Consumers
Debris of the Francis Scott Key Bridge in Baltimore, Maryland, March 26, 2024. (Michael A. McCoy of The Washington Post via Getty Images/Getty Images)
“Construction companies will argue that they are not actually responsible for the fatal accident because it was not their fault. The boat was struck and they were not the ones who actually caused the injury. body,” Azel added.
Many shipping companies pool their insurance through P&I clubs, a group structure that shares the risk of loss, Azel said. According to the club’s website, the P&I Club accounts for approximately 90% of the world’s ocean-going tonnage and covers virtually every type of ship. Members reinsure each other by sharing insurance proceeds of over $10 million. Fox News reached out to the P&I Club for comment on whether Dalli is part of the group, but did not immediately receive a response.
The international group of P&I clubs collectively insure approximately 90% of the world’s oceangoing tonnage. IG Group declined to comment.
“What’s also interesting is that President Biden came out and said that there will be federal funding to rebuild the bridge,” Uzel said. “That’s another complicating factor and it’s going to present arguments that people will have to make. Well, if the government is going to pay the bill to rebuild this, do we really need insurance? If there is an insurance company there, I would argue that the insurance company should contribute that amount, but that will be determined by the court system.”
Transportation Secretary Pete Buttigieg said those deemed responsible for the tragedy still need to be held financially accountable. (Taylor Glasscock/Bloomberg via Getty Images/Getty Images)
Buttigieg said the government would help with funding, but those deemed responsible for the tragedy still need to be held financially accountable.
Buttigieg said Wednesday: “If the investigation finds that private entities are responsible, there is no question that they will be held accountable. But we cannot just wait for that to happen.” Stated. “We have to make sure we work now today to put this bridge back together and reopen this port.”
Mr. Azel, who has represented clients in high-profile insurance cases such as sexual abuse allegations against the Boy Scouts of America, said the outcome of the investigation is critical in determining who is owed what. He says it will be very important.
“The insurance company is going to look into this and ask if there is any third party to which they can shift liability, so part of the investigation process will be to determine the cause,” Azel said. . “Was it a defective machined part, was it a fuel issue, was some other third party responsible? There are many questions about whose problem this really is and who will pay for the damages. There will be debate about the dollar amount. ”
Azell also noted that a lawsuit could be filed even before the National Transportation Safety Board (NTSB) investigation determines causation.
“Families can go out tomorrow and file a lawsuit, and the companies that are sued have to respond to the charges,” Azel said. “So, in a sense, the NTSB investigation is not an impediment to pursuing any claims, but this investigation will definitely shed light and provide guidance as to who the responsible parties are. ”
A U.S. Army Corps of Engineers boat passes over the wreckage of the Dali cargo ship Wednesday, March 27. (Reuters/Mike Seeger/Reuters Photo)
Azel said the family could sue multiple parties, depending on who they say is responsible.
“It’s going to get very complicated because people are going to pursue their rights and then there’s going to be companies fighting over liability, which are going to fight over insurance companies’ liability,” Azar said. “This creates not only primary disputes between plaintiffs and potential responsible parties, but also disagreements among responsible parties as to who is actually responsible and who bears the lion’s share of the blame. become.”
Click here to read more on FOX Business
He said the parties typically end up settling before a lawsuit is filed.
“In our judicial system, most cases result in settlements rather than trials,” Azel said. “As long as there is a negative trial or judgment or verdict, it could go through a whole appellate process, which can take years.”
FOX News’ Bradford Bentz and Reuters contributed to this report.
