What is meant by the term inherent vice?

The term "inherent vice" refers to the qualities of an object or item that cause it to be susceptible to damage or loss simply due to its natural characteristics, independent of external factors. This means that certain items are prone to degradation or deterioration because of their inherent properties, such as a painting that can fade over time due to exposure to light or food that can spoil because of its composition.

Understanding this concept is crucial within the realm of insurance, as policies often exclude coverage for losses resulting from inherent vice. This helps insurers limit their liability for claims that arise from the natural vulnerabilities of specific items. Therefore, recognizing that some loss is inevitable due to an object's fundamental nature is key to assessing risk and determining appropriate coverage in insurance policies.