Average adjuster
Category: Marine insurance · Reviewed by the Apex broking team · Last reviewed 2026-08-22 · ~4 min read
Category: Marine insurance
Also known as: average adjustment, general average adjuster, marine claims adjuster
Related concepts: general average, particular average, marine insurance
Definition
“Average” in marine insurance means loss or damage. An average adjuster is the professional who investigates a marine casualty, decides what falls to be allowed, values the interests involved and produces a statement — the adjustment — setting out who owes what to whom. The output is a document that the parties and their insurers can settle against without litigation.
The role is unusual because the adjuster is typically instructed and remunerated by one party, most often the shipowner, but does not act as that party’s advocate. The professional duty is to state the adjustment impartially and in accordance with the applicable law and rules. An adjustment is not binding in the way an arbitral award is; it can be challenged, and parties sometimes do challenge it.
General average and the York-Antwerp Rules
General average is the principle that where an extraordinary sacrifice or expenditure is intentionally and reasonably made for the common safety of a maritime adventure, the loss is shared rateably between all the interests saved. Working out that share is the classic task of the average adjuster: identifying which sacrifices and expenditures are allowable, valuing the contributing interests, and calculating each party’s contribution.
In practice the adjustment is normally made under the York-Antwerp Rules, an internationally used set of rules incorporated into bills of lading and charterparties by contract rather than applying automatically. Different editions of the Rules remain in circulation and produce different answers on some allowances, so which edition the contract incorporates is a live question on a real casualty rather than a technicality.
Particular average and other adjuster work
Not everything an average adjuster does is general average. Particular average — partial loss falling on the interest that suffers it, without contribution from others — is also stated by adjusters, as are salvage apportionments, sue and labour and general average security arrangements. On a substantial casualty the adjuster is often the party assembling the guarantees and bonds that allow cargo to be released before the adjustment is complete.
Adjusters are also used as expert advisers on marine policy interpretation, on collision liabilities and on the interaction between hull, cargo and liability covers.
The Association of Average Adjusters
In the United Kingdom the profession is organised through the Association of Average Adjusters, which was incorporated as a company limited by guarantee in 2019. The Association promotes standards through examinations, publishes Rules of Practice that establish uniform approaches to recurring adjustment questions, and maintains professional conduct standards for members.
Its qualification structure runs through Associateship, Senior Associate and Fellowship. Where a contract or a policy calls for an adjustment to be prepared by an average adjuster, membership of the Association is the usual practical benchmark.
How an average adjuster differs from a loss adjuster
The two titles sound similar and describe different jobs. A loss adjuster is normally appointed by an insurer to investigate a claim and advise on quantum and on whether the policy responds; the appointment is on the insurer’s side of the transaction. An average adjuster states an adjustment between multiple commercial interests and owes duties to all of them.
There is also a different sense of “average” that catches non-marine buyers out. In commercial property insurance, average is the condition that reduces a claim payment in proportion to underinsurance. That has nothing to do with average adjusters, who deal with marine adventures.
Why it matters
If your goods are on a vessel that suffers a casualty, general average can be declared and your cargo may not be released until security has been provided — even though you have done nothing wrong and your goods may be undamaged. Marine cargo insurance normally responds to general average contributions and to the provision of security, which is precisely why the cover is worth having and why the certificate details matter to the adjuster. Businesses that import or export on their own account, rather than relying on a carrier’s liability cover, should check that point before a casualty rather than after.
Frequently asked questions
What does an average adjuster do?
An average adjuster investigates a marine casualty and prepares a statement apportioning the loss between the interests involved. Most often that means a general average adjustment allocating sacrifices and expenditures between ship, cargo and freight, but adjusters also state particular average, salvage apportionments and general average security.
Is an average adjuster independent?
The adjuster is normally instructed by one party, usually the shipowner, but the professional duty is to act impartially towards everyone with an interest in the adventure. An adjustment is not binding like an arbitration award; parties who disagree with it can and sometimes do challenge it.
What is the difference between an average adjuster and a loss adjuster?
A loss adjuster is generally appointed by an insurer to investigate a claim under a policy and advise on quantum and coverage. An average adjuster states an apportionment between multiple commercial interests in a marine adventure and owes duties to all of them, not to the party paying the fee.
Does 'average' here mean the same as average on a property policy?
No. In marine insurance average simply means loss or damage. In commercial property insurance, average is the condition that scales down a claim payment in proportion to underinsurance. The two uses share a word and nothing else, and average adjusters deal only with the marine sense.
Related entries
This entry is part of the Apex Insurance Wiki. This entry is insurance information, not legal advice. It describes UK insurance law and market practice as at August 2026 and does not address the terms of any particular policy. Take advice on your own wording and your own facts before acting. Last reviewed 2026-08-22. Next review: 2027-02-22.
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This page is general information, not advice on a specific policy.