Running down clause

{
  "id": "MLC-T-INS-003007",
  "term": "Running down clause",
  "field": "Insurance and risk management",
  "definition": "A provision in a marine hull insurance policy that covers the insured vessel owner's legal liability for physical damage caused to another ship by a collision. It specifically addresses damage to the other vessel's hull and machinery, but excludes liability for personal injury, pollution, or damage to cargo or fixed objects like piers. Coverage under this clause is traditionally limited to three-fourths of the insured value of the policyholder's vessel, with the remaining one-fourth covered by Protection and Indemnity (P&I) insurance.",
  "url": "https://mlchart.com/terminology/insurance/running-down-clause/"
}