What happens when inherent vice is present in an insured item?

When inherent vice is present in an insured item, it indicates that the item has certain characteristics or traits that make it susceptible to damage or deterioration without any external cause. This intrinsic nature of the item means that it is predisposed to fail, spoil, or degrade over time simply due to its own qualities.

In insurance terms, when an item possesses inherent vice, it often leads to complications regarding coverage. Insurers typically do not cover losses that arise directly from these inherent conditions. For example, perishable items, fragile materials, or products with built-in defects may experience loss or damage due to their inherent vice. As a result, they do not meet the criteria for full coverage or may be limited in the scope of insurance.

This understanding is crucial in risk assessment and managing insurance claims since inherent vice affects the insurance company’s liability. Thus, it's essential for both insurers and insured to be aware of these characteristics when evaluating coverage opportunities.