Free of Particular Average (FPA)
Insurance that provides coverage for loss or damage if the damage exceeds a certain percentage or threshold.
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Al Sharqi Shipping is a leader in the logistics industry with more than 30 years of experience in guiding and moving freight across the globe.
What does Free of Particular Average (FPA) refer to?
Free of Particular Average (FPA) is a clause in a marine insurance policy that specifies that the insurer is not responsible for covering losses or damages to the cargo that are caused by partial losses, such as breakage, leakage, or pilferage, unless the loss exceeds a certain percentage of the total insured value. This clause is typically used in policies that cover goods that are shipped in bulk or that have a low unit value.
Related Glossary terms
→ Free Days
→ Free In and Out (FIO)
→ Free In (FI)
→ Free of Capture and Seizure (FC&S)
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