Marine Cargo Insurance – FPA (Free of Particular Average)
When it comes to marine cargo insurance, the FPA (Free of Particular Average) is a clause that states that no claim will be paid for any damage to goods during a voyage unless the loss totals or exceeds a certain percentage of the value specified in the policy. The purpose of such a clause is to avoid having to pay out for small claims that could easily be resolved without insurance.
- For logistics companies, the FPA can be a valuable way to protect their bottom line from unexpected damages that may occur during shipping.
- By having this clause in place, they can rest assured knowing that they will not have to bear the full cost of any damages that may occur.
- This can save them a significant amount of money in the long run, and help to keep their business running smoothly.
If you are a logistics company owner or manager, it is important to understand the FPA and how it can impact your business. By having this knowledge, you can make sure that you are adequately protected against unexpected losses that could occur during shipping.
Free of Particular Average (FPA)
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