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The insurer of Baltimore’s Francis Scott Key Bridge has reached a $350 million settlement with the owner and operator of the container ship Dali.
ACE American Insurance Company, part of Chubb, confirmed the agreement during a federal court hearing in Baltimore.
The amount matches the $350 million the insurer paid to the state of Maryland less than two months after the bridge collapsed in March 2024, which was the full limit of the state’s insurance policy.
The collapse happened after the Dali lost power and hit the bridge, causing it to fall and leading to the deaths of six construction workers.
Details of the settlement were not shared in court. The case, however, is far from over. Several parties, including the city of Baltimore, the state of Maryland, local businesses and families of the victims, are still pursuing claims against the ship’s owner, Grace Ocean Private Limited, and its manager, Synergy Marine Group.
The total cost of rebuilding the bridge is now expected to go beyond $5 billion, and the completion timeline has been extended from 2028 to 2030.
The main issue in the upcoming trial is whether the shipowner and operator can limit their liability to around $44 million under an old maritime law. They have been trying to cap their liability at this amount for years.
On the other side, claimants are seeking damages worth billions.
A bench trial to decide this will begin on June 1, with a pre-trial hearing scheduled for May 5. U.S. District Judge James Bredar has told all parties that they must be ready for trial even if more settlements are reached.
Earlier, Grace Ocean and Synergy Marine also agreed to a $102 million settlement with the U.S. Department of Justice.
Investigators from the National Transportation Safety Board found that a loose wire caused electrical failure on board the Dali, but those findings cannot be directly used in court.
Legal experts said the insurer’s settlement removes one major claim from the case, but the bigger fight over liability is still ahead.
At the same time, Maryland officials say work on the new bridge is moving forward. The design is about 70% complete, which they say is faster than usual for such projects. The Port of Baltimore has also recorded its second-best year on record since the collapse.
State officials have said the project is progressing at speed without affecting safety or design standards.
References: cbsnews, wbaltv
Insurer Secures $350M Settlement With Dali Owner Over Baltimore Key Bridge Collapse
