Marsh launches $50 million port lock insurance facility

Marsh, the insurance broker and subsidiary of Marsh McLennan, has announced the launch of a first-of-its-kind $50 million insurance policy covering ports and shipping terminals worldwide.

Created by Marsh following the collapse of the Francis Scott Key Bridge and subsequent disruption in Baltimore Harbor, the insurance facility can be purchased independently or used to supplement existing coverage.

Available to Marsh customers globally, it is specifically designed to provide customers with coverage for loss of income caused by third party accidents such as a ship sinking in a channel, a ship impact resulting in a lane closure waterways or a natural disaster.

The facility, which is backed by a group of Lloyd’s of London qualified insurers and the London A+ market, offers a capacity of $50 million, with higher limits available on a case-by-case basis.

Port blockages are a growing concern for businesses operating in the maritime industry and can lead to significant disruptions to global supply chains and loss of revenue. Facility wording can be tailored to meet the specific needs of individual clients, meaning coverage can be aligned to specific risk exposures and operational requirements.

“Port blockages around the world are increasing in frequency and severity and have debilitating consequences for businesses involved in international trade,” Louise Nevill, CEO, UK Marine, Marsh Specialty, commented in a statement. “As global trade continues to expand, this new facility provides customers with a rapidly available layer of insurance to protect operations and recovery in the event of port and terminal disruption.”

Source: Marsh

Photo: The collapsed Francis Scott Key Bridge is shown sitting on top of the Dali container ship, Monday, April 15, 2024, (AP Photo/Julia Nikhinson)

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