(insurance) A document indicating the type and amount of insurance coverage in force on a particular shipment. Used to assure the consignee that insurance is provided to cover loss of or damage to the cargo while in transit.
In some cases a shipper may issue a document that certifies that a shipment has been insured under a given open policy, and that the certificate represents and takes the place of such open policy, the provisions of which are controlling.
Because of the objections that an instrument of this kind did not constitute a “policy” within the requirements of letters of credit, it has become the practice to use a special marine policy. A special marine policy makes no reference to an open policy and stands on its own feet as an obligation of the underwriting company.
See special marine policy, insurance document, insurance declaration, bordereau, open policy.