The American cases interpreting piracy clauses in insurance contracts are not completely consistent but there are certain factors that the cases generally agree are indicia of piracy. However, there are still several loose ends under American law that the courts have not addressed. Because the British law of marine insurance is more developed in this area and marine insurance contracts are commercial documents used in international trade, American courts should apply British law in those areas where no American precedent exists.rnHowever, the inconsistencies in the case law and the multitude of non-insurance definitions of piracy invite confusion. Therefore, insurers should seriously consider defining "piracy" and "pirates" in their insurance policies using the factors described above. Both the insurer and the insured can better price risk if they fully understand exactly what their insurance contracts cover.
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