Define: Free Of All Average

– “Free of All Average” means that the insurance policy does not cover partial losses or damage to the cargo. It only covers total losses.

– No, “Free of All Average” and “All Risks” coverage are not the same. “All Risks” coverage provides broader protection, including coverage for partial losses, while “Free of All Average” does not.

– Yes, you can add coverage for partial losses by purchasing additional insurance, such as a “Particular Average” policy.

– Partial losses, such as damage to the cargo, are not covered under a “Free of All Average” policy. Only total losses, such as the complete destruction of the cargo, are covered.

– The premium for a “Free of All Average” policy is typically lower than for a policy that covers partial losses, as it provides less coverage.

– Yes, you can switch to a different policy that provides coverage for partial losses, but it may result in a higher premium.

– Some insurance policies may have specific exceptions or limitations to the “Free of All Average” coverage, so it’s important to review the policy carefully.

– If you experience a partial loss, you may need to file a claim under a separate insurance policy that covers partial losses, or seek compensation from the carrier or other parties involved.

– Yes, you may be able to negotiate the terms of the policy with the insurer, such as adding endorsements or adjusting the coverage limits.

– “Free of All Average” coverage is not required for all marine shipments, but it may be recommended for certain types of cargo or shipping routes. It’s important to assess the specific risks and insurance needs for each shipment.