open cover policy

(marine cargo insurance) An insurance policy that covers multiple shipments over a period of time. Open cover policies are by far the most commonly used policies in international trade. The policy can be set at a specific value that will require renewal once the insured amount reaches its limit. Or it can be positioned as a permanently “open” policy that will serve for an agreed-upon time (e.g., one year), but allowing for any number of shipping consignments during the period. Open cover policies have significant advantages over other policy types, especially for the active trader. Some open cover policies have been in effect for more than 100 years. See also voyage or specific policy, contingency policy.

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