Barratry

Category: legal

An unlawful or fraudulent act committed intentionally by a ship's master or crew to the detriment of the shipowner.

Barratry includes acts like stealing the ship, smuggling contraband, or intentionally running the vessel aground for a payout. Marine hull policies must explicitly state whether the peril of barratry is covered, as it represents a severe moral hazard outside the owner’s control.

Common Examples

• The underwriter investigated whether the captain’s unauthorized deviation into illegal waters constituted an act of barratry.
• Modern marine contracts protect shipowners by including barratry as a named peril within standard hull and machinery coverage.