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⚓ '''Particular average''' is a [[Definition:Marine insurance | marine insurance]] term for a [[Definition:Partial loss | partial loss]] that falls entirely on a single party's interest — the cargo owner, the shipowner, or the freight interest — rather than being shared among all parties to the voyage. It contrasts sharply with [[Definition:General average | general average]], where a deliberate sacrifice (such as jettisoning cargo to save a vessel) triggers a proportional contribution from every stakeholder. The distinction is one of the oldest in insurance law, tracing back centuries to maritime trade customs, and it remains central to how modern marine [[Definition:Claim | claims]] are classified and settled.

🔧 In practice, a particular average claim arises when goods are damaged by perils of the sea — heavy weather, seawater ingress, shifting cargo — without any voluntary act to protect the common venture. The [[Definition:Claims adjuster | surveyor]] or adjuster assesses the extent of damage, and the [[Definition:Insurance carrier | insurer]] indemnifies the claimant based on the policy's terms. Some older or more basic marine policies are written on a "free of particular average" (FPA) basis, meaning the insurer is not liable for partial losses at all unless caused by a specified event like stranding, sinking, or fire. Broader forms such as the Institute Cargo Clauses (A) cover particular average without such restrictions, giving the [[Definition:Policyholder | policyholder]] wider protection. The policy's [[Definition:Deductible | franchise]] or deductible threshold also plays a role, as small partial losses may fall below the trigger point.

📋 For marine [[Definition:Underwriting | underwriters]], correctly distinguishing between particular average and general average is essential because the claims-handling process, legal obligations, and [[Definition:Reinsurance | reinsurance]] implications differ markedly. A general average event can involve months of complex apportionment calculations and multiple stakeholders, whereas a particular average loss is typically resolved between the claimant and their own insurer. Cargo importers and exporters benefit from understanding this distinction when selecting policy forms, as opting for coverage that excludes particular average may reduce [[Definition:Premium | premiums]] but leaves the insured exposed to the most common type of partial damage encountered during transit.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:General average]]
* [[Definition:Marine insurance]]
* [[Definition:Partial loss]]
* [[Definition:Institute cargo clauses]]
* [[Definition:Hull insurance]]
* [[Definition:Free of particular average (FPA)]]
{{Div col end}}

Definition:Particular average - Revision history

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