| average 1) A single number used to represent a set of numbers; mean. See: arithmetic mean, geometric mean, median.2) A method of sharing losses in property insurance to combat underinsurance. This is usually applied in an average clause in a fire insurance policy, in which it is stated that the sum payable in the event of a claim shall not be more than the proportion that the insured value of an item bears to its actual value. 3) A partial loss in marine insurance. |