Open Policy (Insurance)
An open policy is a type of marine insurance policy that provides continuous coverage for multiple shipments under a single agreement. Instead of arranging insurance separately for each shipment, the policy automatically covers all eligible cargo moved during a defined period. This makes it a convenient option for businesses that ship goods frequently. Coverage applies as soon as a shipment is declared under the policy.
Under an open policy, the insured party regularly declares shipment details such as value, route, and cargo type to the insurer. Premiums are calculated based on these declarations, either periodically or at the end of an agreed cycle. The policy outlines coverage limits, risks covered, and exclusions upfront. This ensures consistency and avoids gaps in insurance protection.
Open policies simplify insurance management and reduce administrative effort. They help maintain uninterrupted coverage, improve compliance, and support smoother cargo movement. For regular shippers, an open policy offers better control, predictable terms, and efficient risk management across ongoing logistics operations.
Frequently Asked Questions about Open Policy (Insurance)
Clear answers to the most common questions people have when learning about Open Policy (Insurance).
It is ideal for businesses that ship goods frequently and want continuous insurance coverage without arranging policies for each shipment.
Premiums are based on declared shipment values and risks and are usually settled periodically according to the policy terms.
Coverage depends on the policy agreement; some cargo types or risks may be excluded or require a special declaration.