Why Every Exporter Needs an Open Marine Insurance Policy

Secure your cargo with an open marine insurance policy from BTW Financial Services, ensuring peace of mind for every exporter. Contact us at insurance@btwimf.com or call 9004389887.

Introduction For businesses engaged in regular international trade, securing shipments isn’t just a best practice—it’s a necessity. While a standard marine insurance policy can work for one-off consignments, exporters shipping multiple times a month need something more streamlined. That’s where Open Marine Insurance Policies come in.

This blog explains what an open policy is, why it benefits exporters, and how it offers cost-effective, continuous cargo protection.

What is an Open Marine Insurance Policy? An open marine insurance policy is a long-term agreement between an exporter and the insurer to cover multiple shipments over a defined period (usually 12 months). Instead of buying individual insurance for every consignment, exporters can declare each shipment under the same open policy.

Key Features of Open Marine Insurance:

• Period-based Coverage: Valid for a fixed duration, typically one year.

• Automatic Protection: All declared shipments are covered under agreed terms.

• Simplified Documentation: One-time underwriting process for the policy.

• Flexible Declarations: Shipments can be declared monthly or per consignment.

Why Exporters Should Opt for an Open Policy

1. Time-Saving Each consignment doesn’t require a new policy. This significantly reduces administrative tasks for logistics or export teams.

2. Cost-Effective Insurers often provide better premium rates for open policies due to the bulk nature of the agreement. It also reduces transaction fees associated with multiple single policies.

3. Consistent Coverage There is no risk of shipment going uninsured due to oversight. All shipments declared within the policy period are covered.

4. Better Claims Handling With an ongoing relationship between the business and insurer, claim processing is usually quicker and more efficient.

5. Suitable for High-Volume Exporters Businesses that ship regularly benefit the most. Whether you export machinery, textiles, pharmaceuticals, or FMCG goods, an open policy ensures uninterrupted protection.

Who Should Consider It?

• Exporters shipping 3 or more consignments per month

• Freight forwarders handling large volumes

• Traders and manufacturers with international clientele

What It Typically Covers:

• Loss or damage due to perils of the sea (storm, sinking, fire, etc.)

• Theft, pilferage, or non-delivery

• Loading and unloading damages

• Transit coverage via sea, air, rail, or road

Optional Add-Ons:

• War and Strike clauses

• Inland transit cover

• Warehouse-to-warehouse coverage

 In the dynamic world of international trade, exporters need insurance solutions that evolve with their volume and risk. Open Marine Insurance Policies offer flexibility, efficiency, and peace of mind, allowing businesses to focus on growth rather than paperwork.

Whether you’re scaling up exports or already managing high-frequency shipments, consider speaking to a certified marine insurance advisor about setting up an open policy.

Stay Protected. Ship Smart. Go Global.