Both-To-Blame Collision Clause
Categories: Insurance
A both-to-blame collision clause is a piece of an ocean marine insurance policy that places loss and blame on both parties...should boats collide.
The owners of the boat and the people who own the cargo on the boat must share the losses in proportion with the monetary values of their cargo (or interests) before the collision. Both owners of cargo and the company that owns the boat are required to pay for the losses. Obviously, boats don’t get into fender-benders often, but the clause also covers other issues:
- A ship sinking, capsizing or being stranded
- Fire, piracy, jettisoning (heaving stuff overbarod to save other stuff)
- Barratry (fraud, or an illegal act by a ship's captain and/or crew)
Damage due to wear and tear, dampness, decay, mold, and war are not included in the coverage. It’s only for the really interesting events, like mid-ocean fender benders and piracy (Jack Sparrow-related or otherwise.
