What does Inherent Vice refer to?

Inherent Vice refers to the characteristics of an item that may make it susceptible to loss or damage regardless of external circumstances. This concept is often applied within insurance contexts to describe natural weaknesses in materials or goods that could lead to their deterioration, even without any outside interference.

For example, delicate fabrics may weaken over time simply due to their nature, or certain types of artwork might be prone to fading. Insurers recognize that these inherent qualities are not typically covered under general property insurance policies since the damage arises from the object’s own characteristics rather than an external event. Understanding inherent vice is crucial for both insurers and policyholders to determine what types of losses can reasonably be protected against.