In early 1913, Steffansson filed by far the largest claim for financial compensation made against the White Star Line, for the loss of a single item of luggage or cargo as a result of the disaster.

[4] According to the testimony of Hugh Woolner at the United States Senate Inquiry into the disaster, he and Steffansson were in the first class smoking room at the moment of impact with the iceberg.

After putting on their lifebelts, the two men went on deck and began helping crew members fill the lifeboats with women and children, in what they initially believed was a precautionary exercise.

Once the seriousness of the situation was understood, Woolner recounted, he and Steffansson helped the crew physically remove a number of men who had forced their way into lifeboat C, ahead of women and children.

[5] After the disaster, Steffansson joined a survivors' committee which formed to award medals and a cup to the Captain, officers, and crew of the rescue ship RMS Carpathia.