What Does Particular Average Mean?
A particular average is a marine insurance provision that holds a shipper responsible for losses that are incurred to the ship or to the ship's cargo when the ship is exposed to a danger. This is opposed to the cargo owner being held responsible and being forced to pay for the losses.
Insuranceopedia Explains Particular Average
Significant losses to ships or their cargo are not unheard of. A fire might break out on a ship, for example, or the ship may capsize, or improperly secured cargo could simply slide off and land overboard. For this reason, it is important for the ship owner to know exactly what their liabilities are. A particular average provision that clarifies this. If a ship owner is responsible for the cargo, they cannot expect the cargo owner to pay for damages.