Marine open policy versus single transit: stop buying cover per consignment
If goods move regularly, per-shipment certificates cost more, and one forgotten declaration is an uninsured loss.
A single transit certificate covers one movement. An open policy covers every movement in a period, with declarations made periodically against an agreed estimated annual turnover.
Why an open policy usually wins
- Lower cost per shipment
- No possibility of a consignment moving uninsured because nobody raised the certificate
- Consistent terms across every movement, rather than whatever was bought that day
- Simpler claim handling with the same wording each time
Where the sum insured should sit
Invoice value plus freight, plus a margin commonly taken as 10% to reflect the cost of dealing with a loss. Insuring at cost price leaves you short on the loss you actually suffer.
The exclusions that cause disputes
- Insufficient or unsuitable packing - the most common reason a cargo claim fails
- Delay, and loss of market caused by delay
- Inherent vice and ordinary leakage
At the point of delivery
Note damage on the carrier document before signing a clean receipt, photograph the packing before unpacking further, and give written notice to the carrier and the insurer immediately. A clean signed receipt makes recovery from the carrier very difficult.