Inherent Vice (Marine Exclusion)

Category: legal

The tendency of certain cargo to deteriorate or self-destruct due to its internal nature, rather than external perils.

Examples include iron rusting naturally, fruit rotting, or milk souring. Marine cargo insurance has a strict, universal exclusion for inherent vice. The insurer will not pay for ruined cargo unless an *external* force (like a reefer failure or hull leak) caused the damage.

Common Examples

• The claim for grain spoilage was rejected under the inherent vice exclusion because the loss was due to natural moisture levels inside the crop.
• Underwriters analyze cargo packaging to ensure it insulates the product against its own natural tendencies toward inherent vice.