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What is the Sistership Clause? A Comprehensive Overview
Definition & Meaning
A sistership clause is a provision included in a hull insurance policy that benefits the assured, or the policyholder. This clause allows the assured to receive the same rights and coverage for multiple vessels that are owned by them. In the event of a collision between two vessels owned by the same assured, the sistership clause ensures that the assured is treated as if each vessel were insured separately, providing essential protection and rights in such situations.
Table of content
Legal Use & context
The sistership clause is primarily used in maritime law and insurance practices related to hull insurance. It is relevant when assessing liability and coverage in incidents involving multiple vessels owned by the same entity. Users can manage related forms and procedures through resources like US Legal Forms, which offers templates drafted by legal professionals to assist in navigating insurance claims and maritime regulations.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: If a shipping company owns two cargo ships and one collides with the other, the sistership clause allows the company to file a claim for damages as if each ship had its own policy, rather than being limited to a single claim.
Example 2: A yacht owner with two vessels involved in a minor accident can utilize the sistership clause to ensure both yachts are covered under their insurance policy, facilitating smoother claims processing. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Notes
California
Commonly includes sistership clauses in marine insurance policies.
Florida
Similar protections are recognized, but specific policy language may vary.
New York
Enforcement of sistership clauses may depend on specific insurance terms.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Hull Insurance
Insurance covering physical damage to a vessel.
The sistership clause is a specific provision within hull insurance.
Joint Ownership Clause
A clause addressing ownership of multiple parties.
The sistership clause specifically pertains to vessels owned by the same assured.
Common misunderstandings
What to do if this term applies to you
If you own multiple vessels and are concerned about coverage in case of a collision, review your hull insurance policy to ensure it includes a sistership clause. If it does not, consider discussing this with your insurance provider. For assistance, you can explore ready-to-use legal form templates available through US Legal Forms, which can help you manage your insurance needs effectively. If your situation is complex, seeking professional legal advice may be beneficial.
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Application: Multiple vessels owned by the same entity
Coverage: Separate claims for each vessel
Key takeaways
Frequently asked questions
A sistership clause is a provision in a hull insurance policy that allows the assured to claim damages for multiple vessels as if they were insured separately.
It provides broader coverage and rights in the event of a collision between vessels you own, ensuring that you can file separate claims for each vessel.
No, not all policies include this clause. It's important to check your specific policy and discuss it with your insurance provider.
It may be possible to add this clause, but you should consult your insurance provider for options and any potential changes to your premium.
Review your insurance policy, and if a sistership clause is included, you can file separate claims. Consider seeking legal advice if needed.