Insurance broker and risk advisor Marsh is launching $50m port blockage insurance facility, covering shipping ports and terminals around the world in wake of the Baltimore bridge disaster.
To remind, the Singaporean-flagged container vessel Dali allided earlier this year with the Francis Scott Key Bridge, which connects Hawkins Point and Dundalk, Maryland, resulting in the bridge’s collapse into the lower Patapsco River. This incident brought all maritime traffic in and out of the Port of Baltimore to a standstill.
The insurance facility offered by the business of Marsh McLennan, Marsh, aims now to provide cover for loss of revenue caused by third-party accidents such as a vessel sinking in a channel, a vessel impact resulting in a waterway closure, or a natural catastrophe.
It was created by Marsh after the collapse of the Francis Scott Key Bridge and the subsequent disruption at the port of Baltimore.
The facility, which can be purchased independently or used to supplement existing cover, is backed by a panel of Lloyd’s of London and London market A+ rated insurers, and offers capacity of $50 million, with higher limits being available on a case-by-case basis.
Port blockage is a growing concern for businesses operating in the maritime industry and can result in significant disruptions to global supply chains and loss of revenue.
Louise Nevill, chief executive officer, UK Marine, Marsh Specialty, said: “Port blockages around the world are increasing with frequency and severity, and are resulting in debilitating consequences for businesses involved in international trade.
“As global trade continues to expand, this new facility offers clients a rapidly available layer of insurance cover to protect operations and recovery in the event of port and terminal disruptions.”
