On March 6, the cargo ship MV Dali hit the support pylon of the Francis Scott Key Bridge in Baltimore, Maryland, and took down the 47-year-old bridge that spanned the Patapsco River, killing six.

From 1960 to 2015, there were 35 major bridge collapses worldwide due to ship or barge collisions, with a total of 342 people killed, according to a 2018 report from the World Association for Waterborne Transport Infrastructure. Eighteen of those collapses happened in the U.S.

In response to past collapses, improvements in the design rules for protecting bridges from impact were issued in the 1993 International Association for Bridge and Structural Engineering's “Ship Collision with Bridges" guide and the 1991 American Association of State Highway and Transportation Officials' “Guide Specification and Commentary for Vessel Collision Design of Highway Bridges."

While these design rule changes came into effect after the construction of the Key Bridge, it remains to be seen whether the collapse of the Key Bridge will have any long-term implications on the architects & engineers insurance market.

“In the short term, there will be implications for the A&E market with additional underwriting scrutiny, pricing increases and even some reductions in coverage and added exclusions are all possible," says Kevin Collins, A&E practice leader at Victor. “However, in our view, for as horrific as that accident was, the design community continues to design successful projects and, for that reason, over the long term, I think we will reach an equilibrium in which the market recognizes the higher risk and exposures for bridge projects through their pricing that will level out the issues overall."

Further, when it comes to changes impacting the future design of bridges, “engineers are smart people and, if the past is prologue, the design process will continue and improvements will be made to try and address these new risks," Collins says.

The collapse of the Francis Scott Key Bridge is a complicated issue—one that is likely to include marine hull, liability and cargo losses, as well as business interruption claims. It also remains to be seen if the bridge was structurally deficient. 

Nevertheless, to date Chubb Insurance has agreed to pay $350 million to the state of Maryland, as insurers start to cover the losses that are expected to cost the insurance industry between $2 billion and $4 billion, making it the largest marine insurance claim ever.

As the investigation into the collapse continues, “it is important for independent agents within the A&E market to work with a broker who is knowledgeable and experienced placing all types of A&E accounts," says Manny Cho, executive vice president, executive lines, Risk Placement Services (RPS). “It's easy to place smaller firms, but the more complex entities—civil engineer, construction and design-build risks—need a specialist broker to work with the retailers and their insureds to design the right programs."

Specialized agents offering this line of business can offer the best service to clients through:

Understanding clients' needs. “Getting up to speed on the changing needs of A&E firms requires time and study, but for those that take that time, they will find success," Collins says. “Positioning your sales and service team to align with the unique issues facing the industry will pay off."

Working with experienced carriers. “Some sectors, such as geotechnical and structural engineers, have always been challenging due to the potential severity of claims," Cho says. “Agents play a key role in helping carriers “understand the insured and their controls in order to craft the right coverage and to provide the proper terms and conditions for the long term."

It is essential to “establish partnerships with carriers and managing general agents (MGAs) that have a strong presence in the marketplace and a demonstrated history through market cycles," Collins adds.

Olivia Overman is IA content editor.