General Average

10 months ago

Insurance Glossary Team

1 minute

Plain English Definition: General average is a maritime law principle where all cargo owners share losses from a voluntary sacrifice to save a ship.

What General Average really means for someone with an insurance policy

Marine insurance policies may require cargo owners to contribute to losses from sacrifices made to ensure the ship’s safety during a perilous journey.

General Average Real World Examples

Jettisoning cargo to stabilize a sinking ship.
Damaging containers to access emergency repair parts.
Compensating for shared losses in marine shipping accidents.