Insurance broker Marsh announced the launch of what it said is a first of its kind $50 million port blockage insurance facility, covering shipping ports and terminals around the world.
The insurance facility can be purchased independently or used to supplement existing cover, and was created following the late March collapse of the Francis Scott Key Bridge and subsequent disruption at the Port of Baltimore.
Available to Marsh clients globally, it is specifically designed to provide clients with 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.
Louise Nevill, CEO of UK Marine, said port blockages “are increasing with frequency and severity,” which can result in significant global supply chain interruptions and revenue loss. The facility’s wording can be customized to meet the specific needs of individual clients.
“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,” Nevill added.
The facility 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.
Related: Insurance Industry Readies for Historic Losses From Baltimore Bridge Tragedy
Photo: The collapsed Francis Scott Key Bridge lay on top of the container ship Dali in Baltimore. (AP Photo/Julia Nikhinson)
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