Owners should recognize the potential liability this poses. Further, an aggressive insurer may attempt to deny coverage for the loss of or damage to a vessel caused by crew fatigue, where the owner allowed the vessel to sail knowing the crew was fatigued, or knowing the vessel was not manned adequately to enable the crew to get adequate rest during the voyage. A boatyard seriously damaged a yacht during a lift, when its crane's wire snapped, dropping the yacht. The federal appeals court having jurisdiction over Alaska held that governing admiralty law does not permit a company to shield itself contractually from liability for gross negligence. The court held that the boatyard's failure properly to test and certify the crane before the lift, together with other considerations, might well constitute gross negligence.
Similar clauses appear in maritime contracts in Alaska.
It is now clear that they do not afford complete protection to the clause's intended beneficiary, or a complete bar to compensation for an injured party.