Both-To-Blame Collision Clause

DEFINITION of 'Both-To-Blame Collision Clause'

Part of the Ocean Marine Insurance policy that states that if a ship (vessel) collides with another ship due to the negligence of both, owners and shippers of both vessels must share in the losses in accordance with the monetary values of their cargo and interests before the collision. The owners of the cargo and company responsible for shipment are both required to pay for losses.



BREAKING DOWN 'Both-To-Blame Collision Clause'

As globalization grows, the shipping industry also grows. In the event of a collision the company's liabilities, and thus risk, will be limited with ocean marine insurance. An Ocean Marine Insurance provides coverage against losses for ships. It provides protection in the event of damage or destruction of a ship's hull and/or the ship's freight.


Some protections also provided under this insurance include:
- Collision of the ship with another ship or object
- A ship sinking, capsizing, or being stranded
- Fire, piracy, jettisoning (throwing overboard of property to save other property)
- Barratry (fraud or an illegal act by a ship's master or crew)


Damage due to wear and tear, dampness, decay, mold and war are not included in the coverage.

RELATED TERMS
  1. Valued Marine Policy

    A type of insurance coverage that places a specific value on ...
  2. Open Cover

    A type of marine insurance policy in which the insurer agrees ...
  3. Bottomry

    When the owner of a ship borrows money and uses the ship itself ...
  4. HARPEX Shipping Index

    The container ship index of ship brokers Harper Petersen & ...
  5. Associate In Marine Insurance Management ...

    An IIA program for insurance professionals is designed to expand ...
  6. Collision Insurance

    A type of auto insurance coverage. Collision Insurance will reimburse ...
Related Articles
  1. ETFs & Mutual Funds

    Are Shipping Stocks Due For A Rally?

    Several bullish catalysts are lining up in favor of shipping companies. Their current cheapness may not last for long, though, so the time to buy is now.
  2. Markets

    Bulk Shipping Companies Struggle As Markets Soften

    The "soft" dry bulk shipping market that confronts shipping companies is a result of lower demand from China, and an excessive amount of bulk ships.
  3. Personal Finance

    Is Free Shipping Worth It?

    Should you buy more just so you can save on shipping?
  4. Markets

    Major Companies That Lose Money On Shipping (AMZN)

    We look at some of the big companies in the home delivery business that have high shipping costs and how they mitigate this.
  5. Personal Finance

    7 Tips For Avoiding Shipping Costs When Shopping Online

    Before clicking on that purchase, make sure you're getting the best deal possible.
  6. Personal Finance

    Amazon’s Minimum Purchase Increase Alienates Shoppers (AMZN)

    Amazon’s increased spend for free shipping from $35 to $49 will increase Prime members but cost the company occasional shoppers.
  7. Markets

    Target Discovers the Power of Free Shipping (TGT, AMZN)

    What may have been obvious to you and me is apparently a revelation to Target (NYSE: TGT): Give consumers something for free, and they jump at the chance to get it. Internet Retailer reports ...
  8. Personal Finance

    Cruise Ship Health Check: What to Know Before You Set Sail

    Cruise-travel health tips that can save money, discomfort, worry – and maybe even your life.
  9. Personal Finance

    The History Of Insurance

    The first written policy appeared in Hammurabi's Code. Find out how it evolved from there.
  10. Personal Finance

    5 Car Insurance Add-Ons You Don't (Always) Need

    We'll look at the types of car insurance that you can avoid to save some money on your monthly premium.
RELATED FAQS
  1. What kinds of costs are included in Free on Board (FOB) shipping?

    Find out about free on board shipping, the obligations of parties involved and the costs parties must assume in free on board ... Read Answer >>
  2. What determines if an international trade is Ex Works (EXW) or Free on Board (FOB)?

    Find out more about the Incoterms rules and what determines if an international trade agreement is an ex works or free on ... Read Answer >>
  3. How Do I fill out a Master Bill of Lading?

    Learn the key elements behind proper accounting, descriptions and procedures when filling out a master bill of lading for ... Read Answer >>
  4. What statements can be used on a Bill of Lading?

    Read about statements that can appear on a bill of lading for items shipped by ocean, land and air as well as some financial ... Read Answer >>
  5. What is the difference between CIF and FOB?

    Learn about the differences between FOB and CIF international trade agreements and the advantages and disadvantages for sellers ... Read Answer >>
  6. When do you buy CIF and when do you buy FOB?

    Making the decision to buy CIF or FOB depends on the experience of the buyer in international trade. Each is convenient depending ... Read Answer >>
Hot Definitions
  1. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  2. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  3. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  4. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  5. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  6. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
Trading Center