Open Cargo Policy

A type of marine insurance policy primarily used to insure goods in transit. Once the policy is issued, it remains in force until canceled by either party. The policy usually indicates the types of goods to be insured, sets geographic limits, establishes a maximum limit of liability for any one shipment, and enumerates the perils insured against. Provisions also allow certificates of insurance to be issued by the insured, based upon the master policy. A monthly report of shipments is provided to the insurer, and it forms the basis for determining the premium