Inherent vice is a natural characteristic, internal defect, or built-in weakness of cargo that causes it to deteriorate, spoil, leak, break, rust, ferment, or damage itself without an external accident. In cargo insurance and shipping claims, inherent vice is important because insurers often exclude losses caused by the nature of the goods rather than by covered transit events. Examples may include fruit ripening, metal corroding, liquids evaporating, poorly cured materials cracking, or fragile goods failing because of their own condition.
Inherent vice is the natural tendency of goods to deteriorate, decay, or damage themselves without any external cause. Cargo insurance policies exclude losses caused by inherent vice because the loss would have occurred regardless of the care taken during transport.
Common Examples
- Fresh produce ripening and rotting due to its biological nature
- Metal goods rusting due to their inherent tendency to oxidize
- Glass cracking under temperature changes due to its physical properties
- Grain fermenting during long voyages
When selecting cargo insurance, discuss the nature of your goods with your broker. Some policies offer limited inherent vice coverage for specific commodities such as refrigerated cargo.
For related logistics context, see glossary entries on Cargo Insurance, All-Risk Coverage, FCL, and LCL.
