Marine Insurance term; 'Average' in maritime commerce signifies the damages or expenses resulting from the accidents of navigation.
Average is either general or particular. General average arises when sacrifices have been made, or expenditures incurred, for the preservation of the ship, cargo and freight, from some peril of the sea or from its effects. It implies a subsequent contribution, from all the parties concerned, rateably to the values of their respective interests, to make good the loss thus occasioned.
Particular average is the opposite to this: it arises where damage is sustained by a ship, cargo, or freight but is borne only by the owner of the damaged property and not recompensed by contribution from all interests in the venture.