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Free of Particular Average
A provision in maritime transport insurance stating that the insurer is not responsible for losses up to a certain percentage of the value of the covered products. The specific percentage varies according to the insurance agreement. Free of particular average provisions normally occur if the covered products are likely to sustain minor losses in transport. This allows the insurer to only be liable for catastrophic losses resulting from transport; for example, the insurer will be liable if the ship sinks or all the products catch fire. It will not be liable if some of the products break in transit, up to a certain percentage of the total value.
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