free of particular average clause

The "free of particular average" (FPA) clause is an insurance provision, primarily used in marine insurance, that limits an insurer's liability for partial losses. It means the insurer is not responsible for particular average losses, which are partial losses to the insured property (like cargo or a vessel) that are not shared by other interests.12

Under an FPA clause, the insurer typically only covers total losses or partial losses that result from specific major events such as stranding, sinking, burning, or collision. Smaller, partial losses below a certain percentage of the insured value are excluded from coverage, reducing the insurer's exposure to numerous small claims. This contrasts with general average, where losses incurred voluntarily to save the entire voyage are shared among all insured interests.13