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⚓ '''Collision liability''' — also known as the running-down clause (RDC) — is a component of [[Definition:Marine insurance | marine hull insurance]] that covers the shipowner's legal liability when the insured vessel collides with another ship and causes damage to that other vessel, its cargo, or associated interests. While the term might suggest a connection to automobile collision coverage, collision liability in insurance parlance is firmly rooted in [[Definition:Ocean marine insurance | ocean marine]] practice and operates under principles quite distinct from those governing [[Definition:Auto insurance | auto insurance]].

🔧 Under a standard [[Definition:Hull and machinery insurance | hull and machinery]] policy, the collision liability clause indemnifies the insured shipowner for sums the owner becomes legally obligated to pay the other vessel's interests as a result of a collision at sea. Coverage customarily extends to three-fourths or four-fourths of the liability, depending on the policy form. The remaining quarter, if not covered under the hull policy, is typically picked up by the shipowner's [[Definition:Protection and indemnity (P&I) insurance | protection and indemnity (P&I) club]]. Importantly, the clause generally covers only ship-to-ship collisions; damage to fixed or floating objects such as docks, buoys, or offshore platforms falls outside its scope and is instead addressed by P&I coverage or separate [[Definition:Liability insurance | liability]] arrangements.

🌊 For marine underwriters and shipowners alike, collision liability provisions represent a critical intersection of [[Definition:Hull insurance | hull]] and [[Definition:Liability insurance | liability]] coverage. Disputes over fault allocation in maritime collisions can involve complex [[Definition:Admiralty law | admiralty law]] proceedings across multiple jurisdictions, and the financial exposure from a major collision — including damage to cargo, [[Definition:Pollution liability | pollution cleanup]], and [[Definition:Wreck removal | wreck removal]] — can dwarf the value of the vessels involved. Underwriters must carefully coordinate the collision liability clause with [[Definition:Protection and indemnity (P&I) insurance | P&I]] and [[Definition:Excess liability insurance | excess liability]] placements to avoid both gaps and overlaps, making this one of the more technically demanding areas of [[Definition:Marine underwriting | marine underwriting]].

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Hull and machinery insurance]]
* [[Definition:Protection and indemnity (P&I) insurance]]
* [[Definition:Marine insurance]]
* [[Definition:Ocean marine insurance]]
* [[Definition:Admiralty law]]
* [[Definition:Running-down clause]]
{{Div col end}}

Definition:Collision liability - Revision history

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