Cargo Insurance Risks Coverage - Comparison

Loss Caused By or Resulting From:	All Risks	FPA with Average (Basic Risk)	FPA* (Total Loss)
Stranding	Yes	Yes	Yes
Sinking	Yes	Yes	Yes
Burning	Yes	Yes	Yes
Collision	Yes	Yes	Yes
Faults or errors in management of the vessel	Yes	Yes	Yes
Bursting of boilers	Yes	Yes	Yes
Latent defects in hull; or machinery	Yes	Yes	Yes
Explosion	Yes	Yes	Yes
Jettison	Yes	Yes	Yes
Heavy weather	Yes	Yes	No
Seawater as a result of heavy weather	Yes	Yes	No
Freshwater	Yes	No	No
Improper stowage by the carrier	Yes	No	No
Hook damage, mud and grease	Yes	No	No
Theft of an entire shipping package	Yes	No	No
Non-Delivery of an entire shipping package	Yes	No	No
Pilferage	Yes	No	No
Leakage	Yes	No	No
Breakage	Yes	No	No

* FPA: Free of Particular Average, without Average

Sometimes, due to the nature of a product or shipping conditions, only limited coverage can be obtained. Free of Particular Average is a limited coverage that usually applies to used merchandise, waste materials and goods shipped subject to an on-deck bill of landing. It covers partial and total losses due to FPA perils. While FPA is not as complete as "All-Risks" coverage, it is better than having no insurance at all.

Policy Written for FPA Conditions Loss Caused by or Resulting from:	Partial Loss Coverage
1. heave weather, lightening, barratry of the Master of Mariners, assailing theives except:	Not Covered	Covered
While on deck, if a direct result of stranding, sinking, burning, fire or collision	Covered	Covered
While under deck, if the vessel strands or is burnt during the insured voyage or if loss or damage can reasonably be attributable to fire or collision	Covered	Covered
2. Fire or explosion	Covered	Covered
3. Vessel of craft being stranded sunk or burnt	Covered	Covered
4. Collision or upset to an air or land conveyance	Covered	Covered
5. Collision or contance of a water borne conveyance with any external object (ice included) other than water	Covered	Covered

Get FREE Quotation