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. Inchmaree Clause

    A clause found in maritime insurance policies which provides ...
  2. Assailing Thieves

    Individuals who are not members of a ship's crew who steal a ...
  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 & Co. ...
  5. Open Cover

    A type of marine insurance policy in which the insurer agrees ...
  6. York Antwerp Rules

    A set of maritime rules that outline the rights and obligations ...
Related Articles
  1. Investing

    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. Investing

    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.
  3. Investing

    Bulk Carrier Vs. Container Vs. Tanker: Exploring the 2016 Shipping Market (C)

    Read about the divergent fates of oil tankers, dry bulk carriers, container ships and other seafaring vessels in the 2016 shipping market.
  4. Investing

    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.
  5. Investing

    Hanjin Shipping Bankruptcy Disaster: Literally Stranded at Sea

    When Hanjin Shipping filed for bankruptcy protection, the South Korean company left dozens of ships and the people on board stranded without port access.
  6. Investing

    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 ...
  7. Personal Finance

    Do You Make More Money Than a Cruise Ship Captain?

    As the cruise-ship industry continues to grow, ship captains are in demand, but it's a strenuous and demanding path to the top.
  8. Investing

    Shipping Container Homes: The Costs and Benefits

    Homes made from storage containers are environmentally friendly and can cost a fraction of a traditional home.
  9. Investing

    Alphabet, Inc. Helps Crack Down On Illegal Fishing

    Google has partnered with non-profits to use a big data approach to solve the illegal fishing problem.
  10. Insurance

    Explaining Insurance

    Insurance is a form of contract between an individual and an insurance company that spreads risk in exchange for premium payments.
RELATED FAQS
  1. What is the difference between Cost and Freight (CFR) and Free on Board (FOB)?

    Learn about some international Incoterms, and find out about the difference between free on board shipping and cost and freight ... Read Answer >>
  2. What are the legal regulations on delivery duty paid?

    Understand the legal requirements for delivery duty paid, as well as how responsibilities can shift between buyers and sellers ... Read Answer >>
  3. When should I send my master Bill of Lading?

    A master bill of lading firms up the shipment details between the shipper of goods and the transportation provider or the ... 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. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  3. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  4. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  5. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  6. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
Trading Center