In general, insurance covers loss of, or damage to, goods at sea. The merchandise owner with marine insurance is typically compensated for losses resulting from fire, shipwreck, piracy, and other causes that are more than those that can legally be recouped from the carrier. There are three main types of marine insurance coverage: "free of particular average" (f.p.a. ), "with average" (w.a. ), and "all risks coverage.".

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