OUR SERVICE - Insurance Services

» Institute Cargo Clauses (free of particular average)

in insurance parlance, the words "free of" mean the insurer (the insurance company) is not liable for whatever follows the words "free of". The words "particular average" mean partial loss. As such, the words "free of particular average" mean excluding partial loss. The free of particular average (f.p.a.) is the narrowest form of coverage. It covers against total loss. When partial loss is specifically covered in the policy, it is recoverable from the insurer only if the loss is the result of the carrying vessel being stranded, sunk or burnt, on fire, or in collision.