Answer
Collision Liability Clause is an H&M clause covering the shipowner’s liability to another vessel following a collision. Traditionally H&M covers three-fourths of collision liability and P&I covers the remaining one-fourth, although modern H&M policies may provide four-fourths cover.”
It refers to the legal responsibility of a vessel owner for damages caused by their ship in a collision with another ship or property. E.g. if ship A collides with ship B & ship A is found at fault then ship A’s collision Liability Insurance will cover the damage to ship B & its cargo