bottomry bonds, no contract was allowed to be prosecuted in the
Section 12 was of particular significance, in that it prohibited societies and partnerships from 'assuring Ships or merchandise at sea or for lending money upon
bottomry' unless chartered.
(15) Although
bottomry agreements were in common use in the trading centers of Italy before the year 1000, the Lombard merchants of northern Italy developed marine insurance coverages in the city of London by the end of the twelfth century.
Bottomry, as it's called, was very risky, so to reduce his risk Cato sought out many partners and invested his profits in land, preferring land offering natural resources like minerals, timber, fish ponds, and pasturage--assets that could not be "ruined by Jupiter," as crops and ships could be.
(172) An example of this type of construct can be seen in the increased use of the unincorporated joint stock company form even though the law appeared to be hostile to it after the passing of what was officially entitled An Act for Better Securing Certain Powers and Privileges, Intended to Be Granted by His Majesty by Two Charters, for Assurance of Ships and Merchandise at Sea, and for Lending Money upon
Bottomry; and for Restraining Several Extravagant and Unwarrantable Practices therein Mentioned 1720, 6 Geo 1, c 18, but is now more commonly known as the Bubble Act 1720.
They had a habit of engaging in "
bottomry." In the context of insurance coverage, it was not a reference to the carnal pleasures for which Greeks were known, of course, but the transfer of risk.