How many types of cover are available for Marine Cargo Insurance?
There are three types of Marine Cargo Insurance:
1. Single Shipment – Premium rates and insurer approval will have to be sought with every shipment made. This type of policy is ideal for companies that do not ship or receive goods often. However, for companies with high shipping volumes, the below two policy types are recommended instead.
2. Open Cover – Marine Open Cover is an umbrella cover which is given to clients who are engaged in continuous and regular import and/or export of goods. An open cover is not a stamped document and thus it is not a policy of insurance. It is an agreement to provide insurance cover on all shipments of the insured at pre-agreed rates and terms. As and when shipments are declared the Insurer will issue specific policies or certificates of insurance which are stamped documents. The advantage of open cover is that it gives continuous and automatic protection to cover all shipments declared by the insured.
3. Annual Cover – Annual policy works almost similar to the open cover policy, except that the insurance period is for 12 months, and subjected to be renewed annually