Types of marine cargo insurance policies
Specific Policy: Covers the single specific shipment only during the policy period.
Open Policy: The agreement between a proposer and an insurer to insure all goods in transit falling within that agreement for a period of time or even indefinitely until the agreement is cancelled by either party. Full premium is collected in advance and adjusted on annual declared value of annual shipments.
Open Cover: is an agreement between the Proposer and the Insurer, the Proposer agrees to buy cargo insurance for all their cargoes whenever they have an obligation to insure and the insurer agrees to provide cargo protection for the Proposer. Premium is charged as declarations of shipments are made.