Both to Blame Collision Clause
The both to blame collision clause requires the cargo insured to reimburse the carrying vessel's owner for part of the damages it pays to the cargo owner where both vessels are found jointly at fault in a collision.
- Clause type
- Condition
- Origin/Market
- London Market (LMA/NMA/Lloyd’s)
- Favours
- Insurer
- Negotiability
- Market standard
Purpose
Under US maritime law, an owner of cargo damaged in a collision between two vessels can, in certain circumstances, recover the full amount of the loss from the carrying vessel even where that vessel was only partly responsible (“both to blame”). The carrying vessel then has a recourse claim against the cargo owner for the share it overpaid because of its own vessel’s fault; the both to blame collision clause in the bill of lading obliges the cargo owner to satisfy that recourse claim, and the corresponding clause in the cargo policy ensures the cargo insurer picks up this obligation.
Effect and limits
The clause is essentially a response to a peculiarity of US law and is of lesser practical relevance in other jurisdictions that apportion liability according to degree of fault. As no dedicated marine cargo coverage currently exists in the register, cov-yachtversicherung is referenced here as the nearest available object, even though the clause was originally developed for commercial sea transport under US bills of lading.
Negotiation and practice
For shipments with a destination port or transit route in the United States, shippers and their insurers should check whether the clause is included in the underlying bill of lading, since otherwise it can unexpectedly trigger a recourse obligation going beyond the ordinary collision liability.