perils clause

Written by

The Information Architects of Encyclopaedia Britannica

Last updated

July 23, 2026

Quick Summary

The perils clause in marine insurance specifies the types of risks covered for a vessel and its cargo. Historically, this clause, originating from a 1779 Lloyd's of London form, listed various dangers such as perils of the sea, fire, enemies, pirates, and losses from the actions of the master or crew.1

While it appears to be an all-risk agreement, courts have interpreted it to cover only explicitly mentioned perils, primarily those "of" the sea, excluding perils "on" the sea unless specifically listed. War risks are typically covered by separate war risk insurance.1

A modernized version was proposed in 1978, aiming to clarify coverage by restricting losses from poor packing, placing the burden of proof for seaworthiness on the shipper, and excluding losses from carrier insolvency. However, this revised form has not been universally adopted by insurers.1

Summary created from Britannica articles using AI. AI can make mistakes, so verify using Britannica articles.

2 Britannica Sources

Ask Britannica AI about this topic

Britannica doesn't have a full article on this topic, so we've curated a list of our relevant coverage.

insurance
Perils clause
Until 1978 the main insuring clause of modern ocean marine policies was preserved almost unchanged from the original 1779 Lloyd’s of London form. The clause is as follows:
Read More
Until 1978 the main insuring clause of modern ocean marine policies was preserved almost unchanged from the original 1779 Lloyd’s of London form. The clause is as follows:
Read More