The Special Cargo Policy covers a single shipment of goods and must be negotiated and issued before each shipment is made.
The Open Cargo Policy is a continuous contract of insurance. It automatically coves all of the policyholder's goods in transit as long as the policy remains in force until canceled by either party (usually 30 days written notice of cancellation).
The Open Cargo Policy offers several advantages:
- It provides automatic protection on all shipments covered by the conditions of the policy and shipped at the Assured's risk. You don't need to be concerned that goods will inadvertently be shipped without insurance. Goods are insured from the moment they commence transit until they reach their destination.
- The policy is designed to suit your specific requirements. You have a complete understanding of the policy's coverage and can determine the cost of the insurance at the time the sale or purchase of goods is negotiated.
- An assured with an Open Cargo Policy with a favorable loss record will enjoy the benefit of lower rates compared to a shipper who arranges for special insurance on individual shipments.
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