Particular Average
Updated: 23 November 2024
What Does Particular Average Mean?
Particular average is a marine insurance provision that holds the shipper responsible for losses incurred to the ship or its cargo when the ship is exposed to a specific danger. This contrasts with the cargo owner being held liable and required to pay for the losses.
Insuranceopedia Explains Particular Average
Significant losses to ships or their cargo are not uncommon. For instance, a fire might break out on a ship, it could capsize, or improperly secured cargo could fall overboard. Therefore, it is crucial for the ship owner to understand their liabilities. A particular average provision helps clarify this by specifying that if the ship owner is responsible for the cargo, they cannot expect the cargo owner to cover the damages.
