Both-to-Blame Collision Clause

Definition

A both-to-blame collision clause is a provision in marine insurance policies and bills of lading that requires the parties affected by a ship collision to share financial responsibility when negligence is found on both sides. Losses are apportioned between the vessels’ owners and cargo interests according to agreed terms—often in proportion to the monetary value of each party’s cargo or interest immediately before the collision.

Purpose

The clause protects carriers and shipowners by:
* Preserving contractual defenses available under international rules (e.g., Hague-Visby Rules) when they have exercised due diligence to make a ship seaworthy.
* Providing a contractual mechanism for contribution and indemnity between colliding parties so that liability is divided rather than imposed in full on one side.

How it works

• The clause applies when both vessels are at least partially negligent in causing a collision.
• After fault is allocated (by agreement, arbitration, or court), each party bears the share of loss that corresponds to its degree of blame or to the agreed apportionment method (such as values of cargo and other interests).
• The clause is typically incorporated into bills of lading and marine insurance policies so cargo owners, carriers, and shipowners have a pre‑agreed method of sharing losses.

Legal and practical considerations

• International rules: Under instruments like the Hague‑Visby Rules, carriers who exercised due diligence to provide a seaworthy ship may have limited liability for some collision claims. The both‑to‑blame clause helps preserve that contractual protection by allocating loss between cargo and other vessel interests.
• Tort and contribution claims: Cargo interests may bring tort claims against the other vessel. In some jurisdictions, the successful party against one owner can seek contribution from the other owner or carrier, which the both‑to‑blame clause addresses by establishing contractual apportionment.
• Limitations: The clause only applies where mutual fault is established. It relates to collision and marine perils; it does not cover losses excluded from marine insurance (e.g., normal wear and tear, decay, or war risks unless specifically insured).

Example

Ship A collides with Ship B. Cargo on Ship A is damaged. A court or arbitrator finds each vessel 50% at fault. Under a both‑to‑blame collision clause:
* The owner of Ship B may be liable initially for damage to Ship A’s cargo.
* Because fault is apportioned 50/50, the owner of Ship B can claim half of that liability from the owner of Ship A (or pass half back through the carrier), so the ultimate loss is shared equally between the parties according to the clause.

Key takeaways

• A both‑to‑blame collision clause allocates collision losses when both vessels are negligent.
• It is commonly used in bills of lading and marine insurance to preserve carriers’ contractual defenses and to provide a clear mechanism for contribution and indemnity.
• The clause applies only when mutual fault is established and does not expand coverage for perils specifically excluded from marine insurance.