Marine Insurance Certificate

What Does Marine Insurance Certificate Mean?

A marine insurance certificate is a document provided by the insured to the shipper responsible for their cargo or other shipping-related activities. It verifies that the cargo is insured during transit and is accompanied by a copy of the insurance policy.

This document is also known as a special cargo policy or a cargo insurance certificate.

Insuranceopedia Explains Marine Insurance Certificate

The certificate pertains to an open policy (or open cover) insurance. An open policy specifies a period during which the insured’s marine business is covered by the insurer for shipments to a designated shipper or carrier. In essence, it informs the shipper that the shipping activity is insured. Open policies are common in commercial marine insurance because most cargo businesses move shipments too frequently to write a separate policy for each one.

Although the certificate is issued by the insured, it is supported by a copy of the insurance policy from the insurer, which may either accompany the certificate or be forwarded shortly thereafter. Businesses moving goods by land instead of by sea typically use freight insurance to cover cargo on trucks and trains.