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FrançaisFree of particular average (FAP)
A type of marine cargo insurance providing minimal coverage. It corresponds to the Institute of London Underwriters “C” clauses. Free of particular average covers:
- Total or partial loss from stranding, sinking, burning or collision.
- Total loss from errors in vessel management, boiler bursting, defects in hull or machinery and explosion,
This coverage is usually inadequate for shipments of goods of more than nominal value. Nevertheless, both the current versions of Incoterms and ICC´s Uniform Customs and Practice for Documentary Credit (UCP 600) accept minimum-cover insurance as the seller´s compliance with its obligation to insure in the absence of any agreement to the contrary. See London Institute of Underwriters Clauses.
