Both-to-Blame Clause

What Does Both-to-Blame Clause Mean?

A both-to-blame clause is a provision in an ocean marine insurance contract that states that both parties involved in a collision at sea must bear the costs of losses due to their respective negligence. This applies to both the owners and the shippers of the vessels involved in the accident.

Insuranceopedia Explains Both-to-Blame Clause

Despite advancements in technology, shipping accidents still occur at sea. When they do, it is possible for both captains of the ships to be at fault. For example, if each captain leaves the helm of their ship unattended and the vessels collide, both parties may share responsibility for the accident. If both parties have ocean marine insurance policies that include both-to-blame clauses, each party will bear a portion of the losses resulting from the incident.

The both-to-blame clause is one of several provisions typically found in commercial marine insurance policies that determine how collision losses are divided. Shippers concerned about cargo damaged in a shared-fault collision may also want to look into freight insurance for additional protection.