Table of Contents:
- Introduction
- Two Main Types of Marine Insurance Policies
- When You Need a New Policy for Every Shipment
- When One Policy Can Cover Multiple Shipments
- Benefits of Choosing the Right Policy Type
- How BTW IMF Guides You
- FAQs
Marine insurance is designed to protect goods from loss, theft, or damage during transportation. But shippers often ask “Do I need to buy a new policy every time I send goods?” The answer depends on how often you ship and what kind of coverage you purchase.
Two Main Types of Marine Insurance Policies
a) Single Transit Policy
- Covers cargo for one specific journey from origin to destination.
- Policy ends once goods reach the final destination.
- Best for occasional shippers.
b) Open Cover Policy
- Covers multiple shipments within a defined period (e.g., one year).
- Allows unlimited declarations of cargo under the same policy.
- Best for regular exporters, importers, or domestic distributors.
When You Need a New Policy for Every Shipment
You will need a fresh policy if:
- You ship infrequently.
- You do not have a running open cover agreement.
- The cargo value or risk is significantly different from your existing cover.
When One Policy Can Cover Multiple Shipments
One open cover policy can protect all trips if:
- Your shipments are frequent and consistent.
- You declare each shipment’s details under the policy.
- The insurer has approved your annual coverage terms.
Benefits of Choosing the Right Policy Type
- Cost Efficiency: Open cover reduces per-shipment cost.
- Convenience: No repeated paperwork for each trip.
- Comprehensive Coverage: Ensures no shipment is left uninsured between policies.
How BTW IMF Guides You
We help you:
- Identify the best policy type based on shipment frequency.
- Customize coverage to include multi-modal transport.
- Avoid coverage gaps between shipments.
- Negotiate better rates for bulk or annual coverage.
FAQs
Q1. Can a single marine insurance policy cover all my shipments for a year?
Yes, with an open cover agreement.
Q2. Is open cover cheaper than buying multiple single trip policies?
Generally, yes — it saves both time and cost for frequent shippers.
Q3. What happens if I forget to declare a shipment under my open cover?
It may not be covered, so timely declaration is essential.
