Open Cover
Candlefocus EditorOpen Cover insurance policies provide coverage for international cargo shipments against loss or damage from sinking, piracy, loading/unloading damages, infestation, or contamination. Policies usually take either permanent or renewable forms, depending on the frequency of the policyholder’s shipping operations.
The insurer or policyholder is required to furnish all information about each shipment, the shipper, and the market conditions. The policyholder must also obtain and provide detailed certificates concerning the nature and value of each cargo to be shipped. These documents will ensure all risks are fully appreciated before any transactions can be approved.
Open Cover serves to mitigate risk and provide peace of mind for cargo shippers, carriers, and policyholders. Countries typically regulate and write national law governing the marine insurance industry; this includes all aspects of contracts, coverages and claims. These laws vary widely by country and by shipping lane. This means that policyholders must be familiar with the regulations of any waters they ship through.
Open Cover is a key technology that provides security to the international shipping industry and its participants. Businesses of all sizes use Open Cover to secure the safe arrival of their cargo and seek a predictable, reliable form of insurance to safeguard their shipments. It is considered to be an essential part of the logistics supply chain for shippers.