What term is used in marine insurance to describe physical damage to the insured property?

The term "particular average" is commonly used in marine insurance to refer specifically to physical damage to the insured property, such as a ship or its cargo, that has occurred due to a peril covered under the policy. This concept highlights instances of partial loss, distinguishing it from "general average," where the loss is shared among all parties involved due to a common peril that causes a significant loss.

Understanding "particular average" is crucial because it delineates the responsibilities of the insurer and the insured, indicating that the insurer is obligated to cover losses that are not due to the collective risks of all the stakeholders but rather to specific occurrences affecting only certain parts of the cargo or vessel.

Other choices relate to different aspects of marine insurance: "hull insurance" pertains to coverage specifically for the ship itself; "cargo loss" generally refers to losses of cargo but does not capture the broader concept of physical damage; and "honour policies" refer to agreements to pay losses based solely on the reputation of the parties involved, which is unrelated to the specific physical damage context provided by particular average.