difference in conditions endorsement

(insurance) An open cargo marine insurance policy endorsement designed to “fill in the gaps” between coverage normally provided by the seller and the buyer in an international transaction. For example, an open cargo policy provides automatic coverage on those shipments which the assured is obligated to insure, and specifically excludes coverage on those shipments which the assured is not obligated to insure, such as those sold or purchased on CIF terms. However, the party responsible for insuring such a shipment might purchase insurance with more limited coverage than the assured would enjoy under his or her own open policy. The difference in conditions endorsement bridges the gap and gives the assured full coverage. See contingency insurance.

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