Particular Average
Published: October 27, 2026 · Last reviewed: October 27, 2026 · Est. reading time 5 minutes
What this button does
Get the right coverage answer the first time you search. Add Total CSR as a preferred source, and our expert-written coverage resources will show up higher in your search results.
In plain language: Particular average means part of a shipment or a ship got damaged, and only the owner of that damaged property bears the loss. Whether insurance pays depends on the marine policy's average terms.
Technical definition: Particular average is a partial loss to a specific cargo or vessel caused by an insured peril and not shared with other voyage interests. Ocean marine policies do not always cover this damage, and cargo coverage usually handles it under separate average provisions.
Particular Average at a Glance
The table below summarizes where particular average sits in an ocean marine program.
| Attribute | Detail |
|---|---|
| Also known as | PA |
| Category | Ocean marine loss concept |
| Lines of business | Cargo insurance, hull coverage |
| Industries most affected | Importers, exporters, vessel owners |
| Who bears the risk | Owner of the damaged property |
| Common solution | WA or all risks cargo terms |
| Also interacts with | General average, FPA clause, Institute Cargo Clauses |
Key Takeaways
- Particular average is a partial loss to one owner's cargo or vessel from a sea peril, not shared with others in the voyage.
- Account managers must check whether a marine cargo policy pays partial losses, because many importers assume every loss is covered.
- Clients often confuse one owner's damaged goods with a shared voyage loss, where every party pays toward a deliberate sacrifice.
- Agencies should confirm the average terms in writing on every certificate and quote before goods ship.
What Is Particular Average in Insurance?
Particular average is damage that falls only on the owner of the affected goods or ship. The Marine Insurance Act 1906 defines it as a partial loss caused by a peril insured against that is not a general average loss. Marine law uses "average" to mean partial damage, and "particular" means the loss stays with one interest.
Carriers write average terms to control frequent small claims, such as minor wetting or breakage. Under FPA terms, the insured absorbs most of these losses. With average (WA) terms pay partial losses from covered perils, sometimes above a percentage franchise.
Here is a worked example. A consignee insures 1,000 cartons of shoes at an insured value of $200,000. Seawater ruins 100 cartons during a storm. That $20,000 of damage is particular average, and payment depends on the average terms in the insurance policy.
How Does Particular Average Work?
- The voyage. Cargo owners or shipowners buy a marine insurance policy, either a voyage policy or annual ocean marine insurance, that names the covered perils.
- The damage. A covered peril, such as one of the perils of the sea, fire, sinking or stranding, damages part of the insured property.
- The survey. Survey reports and a claim statement document the damaged share, and average adjusters may compare sound and damaged arrived value to calculate the payable share of the cargo loss.
- The settlement. Policy average terms decide the settlement amount, from full payment of the damaged share to nothing under FPA terms.
Claim Examples Involving Particular Average
Seawater cargo damage paid under the insuring clause
An importer ships coffee under WA terms. Rough weather conditions force seawater into one hold and spoils 15% of the bags. Heavy weather is a named peril in the policy, so the importer recovers the value of the spoiled bags.
Particular average loss on a hull after a collision
A vessel collides with another ship in a harbor and needs bow repairs, but no one sacrificed property for the common good. Hull insurance treats the repair cost as particular average, so the shipowner's policy pays it, less any deductibles.
Free of particular average terms leave a heavy-weather partial loss unpaid
An exporter accepts FPA American conditions to save premium. Rough seas break part of the machinery, but the ship never strands, sinks, burns or collides. The policy pays nothing, and the exporter absorbs the full cost.
Particular Average vs. General Average: What Is the Difference?
Particular average is damage borne by one owner. General average is a deliberate sacrifice or expense made to save the whole maritime venture, shared by the ship and every cargo interest under the York-Antwerp Rules. The table below compares particular average and general average.
| Comparison area | Particular average | General average |
|---|---|---|
| Primary use case | Accidental partial loss to one interest | Intentional sacrifice to save the voyage |
| Who pays | Owner of the damaged property, or its insurer | Ship and every cargo interest, by contribution |
| Governing rules | Policy average terms | York-Antwerp Rules and contracts of carriage |
| Who is most affected by errors | Importers on FPA terms | Shippers without marine insurance |
| Common mistakes | Assuming all partial losses are covered | Treating a contribution demand as optional |
What Are the Most Common Mistakes With Particular Average?
- Quoting FPA without explaining it. A client on FPA terms who loses part of a shipment learns the gap only at claim time, which creates E&O exposure.
- Mixing up English FPA and American FPA. English conditions can pay for damage if the vessel stranded, sank, burned or collided, while American conditions require one of those events to cause it.
- Ignoring franchise percentages. WA terms may apply a percentage threshold, so small partial losses go unpaid.
- Missing policy exclusions. Improper handling, poor packing and inherent defects can defeat a cargo claim even under all risks terms.
Sources and References
- International Risk Management Institute (IRMI). Particular Average.
- International Risk Management Institute (IRMI). Free of Particular Average, American Conditions.
- legislation.gov.uk. Marine Insurance Act 1906, Section 64: Particular average loss.