Category: Insurance & liability
General Average
Also known as: GA
Definition
A maritime principle where all cargo owners share the loss when some cargo is sacrificed to save the voyage.
General average is an ancient rule of the sea: when the master deliberately sacrifices part of the cargo or incurs extraordinary expense to save the ship and remaining cargo from a common peril, all parties with property at risk contribute proportionally to the loss.
When declared, cargo can be held until owners post a general-average bond or guarantee, which is where marine cargo insurance proves vital — the insurer covers the contribution. It can arise from events like fire, grounding, or jettison.
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