Legal Definitions - running-down clause

Running-Down Clause

A running-down clause is a specialized provision found within a marine insurance policy, specifically one that covers the hull of a vessel (the main body of the ship). This clause provides coverage for a portion of the financial damages that the insured vessel might cause to another ship during a collision. In simpler terms, if your insured ship collides with and damages another vessel, and your ship is found to be responsible, this clause ensures that your hull insurer will contribute to paying for the repairs or losses sustained by the other ship.

• Example 1: Commercial Vessel Collision

  Imagine a large cargo ship, the "Ocean Voyager," is navigating a busy shipping lane. Due to a navigational error, it collides with a smaller chemical tanker, the "Aqua Spirit," causing a significant dent in the tanker's side and damaging some of its internal piping. The "Ocean Voyager" has a marine insurance policy that includes a running-down clause.

  How it illustrates the term: Because the "Ocean Voyager" was at fault, its hull insurer, under the terms of the running-down clause, would pay a specified proportion of the repair costs and other damages incurred by the "Aqua Spirit." This clause protects the "Ocean Voyager's" owner from bearing the full cost of the damage caused to the other vessel.

• Example 2: Recreational Boating Accident

  Consider a scenario where a private yacht, the "Sea Breeze," is participating in a local regatta. During a turn, the skipper misjudges the distance and scrapes the side of another competitor's yacht, the "Wind Dancer," tearing its sail and damaging its rigging. The "Sea Breeze" is insured with a policy containing a running-down clause.

  How it illustrates the term: The running-down clause in the "Sea Breeze's" insurance policy would activate. It would cover a portion of the expenses for repairing the "Wind Dancer's" damaged sail and rigging, as the "Sea Breeze" was responsible for the collision.

• Example 3: Port Maneuvering Incident

  A passenger ferry, the "Harbor Queen," is attempting to dock in a crowded port. Due to an unexpected strong current, it drifts slightly off course and bumps into a stationary tugboat, the "Port Guardian," which was waiting nearby. The impact causes structural damage to the tugboat's stern. The "Harbor Queen" has a marine insurance policy with a running-down clause.

  How it illustrates the term: In this situation, the running-down clause in the "Harbor Queen's" insurance policy would ensure that its hull insurer contributes to the costs of repairing the damage sustained by the "Port Guardian," even though the "Harbor Queen" itself might only have minor damage.