Average – A term in marine cargo insurance signifying loss or damage to merchandise. General average – A loss arising out of a voluntary sacrifice made of any part of a shipment or cargo to prevent loss of the whole and for the benefit of all persons concerned. FPA – Free of particular average – a provision in a marine cargo insurance policy that no claim shall be paid for damage to goods in the course of a voyage unless a loss is sustained that totals or exceeds a certain percentage of the value as specified in the policy. The object of such a provision is the avoidance of petty claims. Open Policy – A contract between an insurance company and the exporter by which all shipments made by the assured are automatically protected from the time the merchandise leaves the initial shipping. Particular average – A partial loss or damage of merchandise caused by a peril insured against, but which is not a general-average loss.
