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.