In marine insurance, what term refers to a partial loss?

In marine insurance, a partial loss is specifically referred to as Particular Average. This term pertains to damage or loss of a portion of the insured property, where only some items are affected rather than the entire shipment. For instance, if a cargo ship encounters rough weather and a certain number of goods are damaged while the rest remain intact, the situation would constitute a Particular Average loss.

Particular Average is significant in marine insurance because it mandates that the owner or insured party must prove the loss and may lead to specific compensation terms under the policy. Unlike General Average, which refers to collective sacrifices made to save the entirety of a ship and cargo, Particular Average deals solely with individual losses that are not shared among parties.

Understanding this distinction is crucial for interpreting marine insurance contracts and claims processes, as it defines how partial losses are addressed and compensated.