Insured losses arising from the collapse of the Francis Scott Key Bridge after it was struck by a container ship and disruption to the Port of Baltimore could total up to $4 billion, Morningstar DBRS said in a report issued Wednesday.

The loss could add upward pricing pressure to marine insurance rates globally, the rating agency said.

Total insured losses could surpass the 2012 Costa Concordia disaster that resulted in a record marine insurance loss of around $1.5 billion, Morningstar said.

Depending on the length of the blockage of the port and the nature of the business interruption coverage it carries, “insured losses could total between $2 (billion) and $4 billion,” the report said.

Despite the potential for outsized losses Morningstar expects they will remain manageable for the global insurance industry as claims will be ultimately paid by a large and diversified pool of insurers and reinsurers.

“In our view, these losses will add to the woes of marine insurers who have been facing recent challenges due to the Houthi rebels’ attacks in the Red Sea,” said Marcos Alvarez, managing director at Morningstar.

The bridge collapse could affect multiple insurance policies, including marine liability and hull, property, cargo and business interruption.

Property insurance policies are also likely to be triggered as it is understood the bridge was insured, Morningstar said.

The property policy of the Port of Baltimore could also include business interruption coverage that would protect the owner against financial losses due to the decrease in shipping traffic.

“We anticipate that litigation will immediately ensue to determine legal responsibility for the involved parties and their insurers,” Morningstar said.

Subrogation among insurers is likely to follow and if courts determine that the ship owner is liable for the accident, “then insurers of the bridge and the port can recover insured losses from the liability insurers of the ship,” the report said.

Given the potential legal liability of the container ship Dali's operator in the loss of life, physical damage to the bridge and business interruption to the port for a relatively extended period of time, protection and indemnity liability insurance will play a crucial role, the report said.

London-based marine mutual insurer The Britannia P&I Club confirmed Tuesday that the Dali is insured by the club for protection and indemnity liabilities. 

Reinsurers participating in the International Group of P&I Clubs’ reinsurance pool will bear most of the insured losses of this event, Morningstar said.

At least six construction workers are presumed dead after the Singapore-flagged Dali, owned by Grace Ocean Pte Ltd., collided with one of the pillars of the bridge, at around 1:30 a.m. ET Tuesday while being piloted.