Marsh launches $50m port blockage insurance facility following Baltimore Bridge collapse

Marsh, the insurance broker, risk advisor and a subsidiary of Marsh McLennan, is launching a first-of-its-kind $50 million port blockage insurance facility, covering shipping ports and terminals globally.

Following the collapse of the Francis Scott Key Bridge and subsequent disruption at the Port of Baltimore, Marsh created this insurance facility.

It is specifically designed to cover loss of revenue caused by third-party accidents such as a vessel sinking in a channel, a vessel collision leading to a waterway closure, or a natural catastrophe.

This coverage can be purchased independently or used to supplement existing policies.

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.”

The facility is backed by a panel of Lloyd’s of London and London market A+ rated insurers, and initially offers capacity of $50 million, with the possibility of higher limits 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, according to Marsh.

The facility’s terms can be customised to meet the specific needs of individual clients, allowing coverage to be tailored to particular risk exposures and operational requirements.

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