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What is the Additional Perils Clause and Its Importance in Marine Insurance?
Definition & Meaning
The additional perils clause is a provision commonly found in marine insurance policies. It offers coverage for specific risks that may arise due to the negligence of the crew or hidden defects in the vessel's machinery. This clause ensures that losses stemming from these factors are covered, provided that the vessel owner has exercised due diligence to maintain a seaworthy ship. The additional perils clause is also referred to as the Inchmaree clause, named after the British ship Inchmaree, which sank in 1884, leading to legal disputes that established this type of coverage.
Table of content
Legal Use & context
This term is primarily used in the context of marine insurance law, which governs the coverage of ships and maritime activities. The additional perils clause is relevant for shipowners, insurers, and maritime lawyers. It provides a legal framework for addressing claims related to negligence and machinery defects. Users can manage related documentation and claims through legal templates available on platforms like US Legal Forms, which offer resources drafted by experienced attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A shipowner files a claim under the additional perils clause after a crew member's error leads to a collision with another vessel. The claim is valid because the owner maintained a seaworthy ship and the incident was due to crew negligence.
Example 2: A ship experiences engine failure due to a latent defect that was not apparent during routine inspections. The owner can claim damages under the additional perils clause, as they took reasonable steps to ensure the vessel's seaworthiness. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Variation
California
Specific regulations on crew training and vessel inspections may affect claims.
Florida
Florida law may impose additional requirements for proving due diligence.
New York
New York courts may interpret negligence standards differently in maritime cases.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Differences
Inchmaree clause
A specific type of additional perils clause.
Focuses on negligence and latent defects.
Standard hull policy
Covers physical damage to the vessel.
Does not include negligence or latent defects.
Common misunderstandings
What to do if this term applies to you
If you believe the additional perils clause applies to your situation, consider the following steps:
Review your marine insurance policy to understand the coverage details.
Document any incidents or damages that may qualify for a claim.
Consult with a maritime lawyer if you have questions about your rights or responsibilities.
Explore US Legal Forms for templates and resources that can assist you in managing claims effectively.
For complex matters, professional legal assistance may be necessary.
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