If a design fault and a storm both caused damage to Ian's speedboat, what is the insurer’s liability under his marine insurance policy?

The insurer’s liability under Ian's marine insurance policy hinges on the principles of causation and the nature of the perils covered by the policy. In cases where both a design fault and an external event, such as a storm, contribute to the damage of the insured property, the principles of marine insurance generally favor coverage for losses associated with the fortuitous events – in this case, the storm.

If the storm was a significant contributing factor to the damage that occurred, the insurer would typically be liable for the claim in full, assuming that the storm itself is a peril covered by the policy. Marine insurance generally protects against risks such as storms, and if these events cause physical damage, the insurer should honor the claim, regardless of the underlying design fault. This is based on the idea that an external peril that contributes to loss entitles the insured to recover, even if the loss would not have occurred without the pre-existing problem (the design fault).

The other choices do not align with standard maritime insurance principles. Denying the claim outright due to the design fault ignores the impact of the storm, while paying only for partial damage based on the storm disregards the full extent of the damage caused by the insured peril. The option of covering the damage after