Legal Definitions - touch and stay

Touch and Stay is a term used in marine insurance. It refers to a specific clause within an insurance policy that grants a vessel explicit permission from its insurer to stop and remain at certain designated points during its voyage. This permission is critical because, under standard marine insurance principles, a vessel is generally expected to follow a direct and continuous course to its destination. Any unauthorized deviation from the agreed-upon route or unapproved stops can potentially invalidate the insurance coverage.

The "touch and stay" clause provides a pre-approved exception to this rule, allowing for necessary or agreed-upon pauses without jeopardizing the insurance. However, the vessel must strictly adhere to the terms of this permission. If the vessel deviates from the permitted activities or stays longer than allowed at the designated point, it could still lose its insurance protection.

• Example 1: Operational Refueling Stop

  A large container ship is insured for a voyage from Singapore to Los Angeles. The insurance policy includes a "touch and stay" clause specifically permitting the vessel to stop at Honolulu, Hawaii, for refueling and to allow for a scheduled crew change. This stop is a standard operational requirement for such a long journey.

  This example illustrates "touch and stay" because the stop in Honolulu, while not directly on the shortest path, is a pre-approved and necessary pause for the vessel's operation. Without this clause, the insurer might consider the stop an unauthorized deviation, potentially voiding the policy. The clause ensures that the vessel can perform its essential operational tasks without losing coverage, provided it only refuels and changes crew as permitted.

• Example 2: Scientific Research Expedition

  A marine research organization insures its specialized vessel for an expedition to study ocean currents in the South Pacific. The insurance policy contains a "touch and stay" provision allowing the vessel to make multiple stops at pre-defined coordinates to deploy and retrieve scientific instruments, collect water samples, and conduct on-board experiments. These stops are integral to the research mission.

  Here, the "touch and stay" clause is vital because the very nature of the voyage involves numerous planned stops that are not direct port-to-port travel. Each stop for scientific purposes would otherwise be considered a deviation. The clause ensures that these essential research activities are covered, but the vessel must strictly confine its activities at these points to scientific work; for instance, using a research stop to engage in unauthorized commercial fishing would violate the terms of the permission.

• Example 3: Mandatory Port Entry Procedures

  A bulk carrier is insured for a voyage from Brazil to the Port of Rotterdam. The insurance policy includes a "touch and stay" clause allowing the vessel to stop at the designated pilot station outside the harbor to pick up a local pilot and then proceed to a specific anchorage for a mandatory customs inspection before docking. These are standard, legally required procedures for entering the port.

  This scenario demonstrates "touch and stay" by explicitly permitting the vessel to make necessary stops for regulatory compliance. These pauses, while not the final destination, are unavoidable steps in the voyage. The clause ensures that the vessel's adherence to international and local maritime regulations does not inadvertently void its insurance. If, however, the vessel were to anchor at the pilot station and, while waiting, engage in an unauthorized transfer of goods to a smaller boat, this would exceed the scope of the permitted "touch and stay" activities and could lead to a loss of insurance protection.