Legal Definitions - liberty of the globe

Definition: Liberty of the Globe is a term used in marine insurance. It refers to a license that is included in a marine policy, which allows the vessel to travel to any part of the world, instead of being restricted to a specific port of destination.

Example: A ship owner purchases a marine insurance policy that includes the Liberty of the Globe clause. This means that the vessel is free to sail to any port in the world, without any restrictions. For instance, if the ship is transporting goods from China to the United States, but the owner receives a more profitable offer to transport the same goods to Europe, they can do so without violating the terms of the policy.

Explanation: The Liberty of the Globe clause gives the ship owner the freedom to change the destination of the vessel without having to worry about violating the terms of the insurance policy. This is particularly useful in situations where the owner receives a more profitable offer or needs to change the destination due to unforeseen circumstances such as bad weather or political unrest.