Time Policy

What Does Time Policy Mean?

A time policy is a type of marine insurance that provides coverage for the insured for a specified period, typically up to twelve months. Once the designated insurance period expires, the policy lapses. Time policies are most often written under commercial marine insurance, where shipowners and operators want continuous protection across a defined window rather than coverage tied to a single trip.

Insuranceopedia Explains Time Policy

The closest equivalent to time policies is voyage policies, which provide coverage for the entire voyage, from departure to arrival. In contrast, time policies require the insured to determine the duration of coverage, which may be based on the estimated length of a single voyage or multiple planned trips over a specified period. Recreational vessel owners run into a similar fixed-term setup with boat insurance, which is usually written on an annual basis and renews each year. Additionally, mixed policies that combine elements of both time and voyage policies can also be purchased.