Both-to-Blame Clause
Updated: 11 March 2024
What Does Both-to-Blame Clause Mean?
A both-to-blame clause is a clause in an ocean marine insurance contract that states that, due to their negligence, both parties involved must pay for losses when two ships collide at sea. This can include the owners as well as the shippers of the vessels involved in the accident.
Insuranceopedia Explains Both-to-Blame Clause
Despite modern technology, shipping accidents still occur at sea. When they do, both ship captains can be at fault. For example, if each captain left the helm of the ship unattended and the ships crashed into each other, then both parties could be responsible for causing the accident. If both parties have ocean marine insurance policies with both-to-blame clauses, then each party will burden a portion of the losses from the accident.
Related Definitions
Related Terms
Related Articles
Insuring Air and Sea Cargo: What You Need to Know Before You Ship
Commercial Marine Insurance 101: How the Oldest Insurance Works Today
Insurance Industry Careers: What They Are and How to Get Them
Boat and Watercraft Insurance: The Basics
25 Key Business Insurance Terms You Should Know and Understand
The Future of Insurtech: How Technology is Transforming the Insurance Industry
Related Reading
Revealing the Most And Least Popular U.S. Insurance Companies
How to Get Into the Insurance Industry With a Finance Degree