ANM Maritime Solutions Group P.A.

The exposure of property to risk at sea.

Partial loss or damage.

Average Adjuster
Appointed by the shipowner to prepare General Average Statement.

Average Clause
The clause in marine policy which sets out the coverage provided in the event of partial loss.

Average Irrespective of Percentage
Indicates that partial losses will be paid regardless of any franchise or percentage.

The right of an underwriter, in the event of a breach of good faith or delay in commencement of an insured voyage to step aside from the insurance contract and to treat it as though they had never accepted the risk.

A criminal or wrongful act by the ship's master or crew causing loss or damage to the ship or cargo.

Benefit of Insurance Claim
A clause by which the bailee of goods claims the benefit of any insurance policy effected by the cargo owner on the goods in care of the bailee. Such a clause in a contract of carriage issued in accordance with the Carriage of Goods by Water Act is void at law.

Blue water

Commonly referred to when determining the navigational territory of your vessel; refers to waters over five miles from land.

Bottom Limit
The maximum value at risk per shipment/sending/aircraft.

Brown water

Commonly referred to when determining the navigational territory of your vessel; refers to waters within five miles of the coast.

Charter Party
The contract evidencing the agreement of a shipowner to lease his vessel to another person or firm.

Where two or more parties share the same risk. A co-insurer is not obliged to follow the decision of another co-insurer, except where they have given authority for the other party to act on their behalf. Each co-insurance is a separate contract with the insured.

Physical impact between two or more ships or vessels used for navigation. In collision liability insurance, the term does not include contact of the insured vessel with anything other than a ship or vessel.

Contingency Insurance (Seller's Insurance)
A secondary insurance coverage which will protect an insured's financial interest if the primary insurance coverage effected by others does not respond for a covered loss.

This relates to situations where more than one party covers the risk. Each party is deemed to be liable for its portion of the loss. If the insured has recovered in full from one insurer, that insurer is entitled to recover from the other insurer that part of the loss which should have been paid by the latter. The term, as used in marine insurance, also applies to contributions paid by the insured in connection with salvage and/or General Average.

Contributory Value
The value of property saved as a result of a General Average Act which forms the basis for determining each party's contribution in General Average.

Cover Note
A non-negotiable document evidencing insurance which may or may not indicate the terms of coverage.

Custom Broker
A firm which specializes in clearing imported merchandise for transit to the interior. Normally responsible for obtaining and submitting all documents for clearing merchandise through customs and arranging inland transport as well as paying all charges related to these functions.

Customs Entry Form
A form required by Canada Customs for all merchandise entering Canada. It indicated country of origin, description of merchandise and amount of estimated duty to be paid before merchandise is released by customs.

Free of Particular Average, American Conditions (FPAAC)
Average clause which limits recovery of partial losses to those caused by fire, stranding, sinking or collision.

Free of Particular Average, English Conditions (FPAEC)
Same as FPAAC except that the partial losses referred to are recoverable if the vessel has stranded, sunk, burned, been on fire in collision, regardless of whether such losses were actually caused by any of these perils.

Like a deductible, but if the amount of the merchandise is met or exceeded, the loss is paid in full.

General Average
Loss arising through a voluntary sacrifice of any part of the ship or cargo, or an expenditure, to safeguard the ship and the rest of the cargo.

General Average Contribution
Such losses or expenditures are contributed to by all the interest at risk on the basis of their respective values.

General Average Bond
Document require of cargo owners, after a GA loss, obtaining their agreement to pay any contribution that may become due.
Throwing the cargo or ship's property overboard to save other property from a common danger.

Overage Additional Premium
All additional premiums charged on an open cover declaration where the carrying vessel is outside the scope of the classification clause. It may be applied, also, to additional premium charged for breach of navigational warranties (e.g., institute warranties) where the ship is more than 15 years old.

Particular Average
A particular loss caused by marine perils, other than a General Average loss.

Perils of the Sea
Hazards arising on navigable waters through natural forces such as abnormally heavy seas, high winds, etc.

The deliberate casting away or destruction of property to prevent greater loss. General Average sacrifice is for the common good and saved interests make good the sacrifice in proportion to the saving enjoyed.

Single Transit Policy
"One Off" insurance for those clients who require transit cover on an infrequent basis.

York/Antwerp Rules
An international code governing General Average.

​​* This is not a complete list of insurance terminology, but a helpful reference for some of the more common terms you’ll encounter while shopping for boat insurance. If you have any questions or concerns while obtaining your quote, please do not hesitate to ask your underwriter.

Terminology (Marine Terms)