Baltimore bridge collapse causes swamp harbor to be blocked

Insurance broker Marsh has announced the launch of what it says is the first of its kind, worth $50 million, covering ports and shipping terminals around the world.

The insurance facility can be purchased independently or used to supplement existing coverage and was created following the late March collapse of the Francis Scott Key Bridge and subsequent disruption in Baltimore Harbor.

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.

Louise Nevill, CEO of UK Marine, said port blockages are “increasing in frequency and severity”, which can lead to significant disruption to the global supply chain and loss of revenue. The formulation of the unit can be customized to meet the specific needs of individual customers.

“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 disruptions,” Nevill added.

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

Related: The insurance industry is bracing for historic losses from the Baltimore bridge tragedy

Photo: The collapsed Francis Scott Key Bridge was above the Dali container ship in Baltimore. (AP Photo/Julia Nikhinson)