Particular Average

Particular Average is a core term in marine cargo insurance, referring to a partial loss of cargo directly caused by natural disasters or accidents during a voyage that affects only a single cargo owner's interest, as opposed to General Average. Its key feature is that the loss is borne solely by the affected party, without contribution from the shipowner or other cargo owners. It typically applies when insuring against With Average (WA/WPA) or All Risks, where the insurer compensates for Particular Average, subject to deductibles and coverage limitations. The difference from General Average is that General Average involves a deliberate and reasonable sacrifice or expenditure to avoid a common peril to ship and cargo, shared proportionally by the beneficiaries, while Particular Average is an accidental loss borne by one party. Note: Under Free from Particular Average (FPA), Particular Average is generally not covered unless the vessel has been stranded, sunk, burnt, or involved in a collision. Foreign trade practitioners should choose appropriate coverage based on cargo characteristics and route risks, and clarify the conditions for Particular Average compensation in the insurance terms.