Court Rules That Sunken Barge Damage Must Be Covered By Insurer

 Tuesday, February 11, 2020

 Risk & Insurance

During repairs to the Coney Island Steeplechase Pier, a spud barge sank and damaged the pier further. The court had to decide if the insurer was responsible for the barge’s damages.

Hurricane Sandy battered the East Coast in late 2012, causing hundreds of thousands of dollars in damage.

The Coney Island Steeplechase Pier, which sits on the southern side of the island, was substantially damaged from the hurricane. The City of New York sought to repair the damage, and Coastal Environmental Group was subcontracted to complete the repairs.

When Coastal began its work, the company-chartered MIKE B, a spud barge, from Sterling Equipment Inc. was used to lower spuds into the sea floor. These spuds would then be welded onto the barge’s deck and the bottom of the barge to prevent the structure from moving horizontally.

By chartering the MIKE B, Coastal was obligated to secure both hull insurance and protection and indemnity insurance covering third-party claims.