Open cover cargo insurance
for regular shipments
An open cover for cargo is used when shipments are regular: similar lots are insured on the same terms throughout the contract period, without a separate policy for each. Under Art. 941 of the Russian Civil Code the assured must report every lot falling under the open policy to the insurer — within the period set in the contract, or, if none is set, as soon as it has the information.
ATF is not an insurer: we help collect the data for the insurance company, check that the contract covers the actual routes — the sea leg, transshipment in Vladivostok, the temporary storage warehouse and rail to your warehouse — and prepare declaration data for the shipments we handle.
Specification
Specification · Open cover for cargo. Standard terms · rates, limits and declaration procedure are fixed in the contract with the insurer
Service
- Type
- open cover for regular shipments
- Terms
- ICC A, B or C by cargo group
- Options
- war and strikes, warehouse storage
Terms
- Term
- usually 1 year, renewable
- Declaring
- per shipment or by periodic register
- Currency
- USD / RUB
Logistics
- Before signing
- proposal, routes, limits
- During the term
- declarations, per-lot certificates
- At the end
- premium adjustment, renewal
Price
- Base
- premium at the insurer's volume-based rate
- Extras
- survey, limit excess — on request
Service flow
- 01
Proposal and volume
We collect data on the flow: cargo types, routes and modes, annual volume, the maximum value of a lot on one vessel or train, packing, loss history.
1–3 days - 02
Contract terms
We agree with the insurer the terms by cargo group (ICC A, B or C), rates, deductibles, the per-conveyance limit, declaration procedure and deadline, and the deposit premium.
1–2 weeks - 03
Signing
The assured signs the open cover with the insurance company. We check the wording has no gaps: transshipments, storage at the temporary storage warehouse (SVKh), rail and road legs inside Russia.
before the first shipment - 04
Declaring shipments
Each shipment is declared within the deadline set in the contract; for shipments handled by ATF we prepare the declaration data. On request the insurer issues a policy or certificate for an individual lot — for the bank or a letter of credit.
per shipment - 05
Adjustment and renewal
At the end of the period the insurer adjusts the premium to the actual volume. We reconcile the bordereaux with actual shipments and prepare data for renewal.
once per period
Problems
With single policies one lot was left uninsured by mistake — and that was the one that arrived damaged.
The open cover sets the terms in advance; what remains is declaring shipments on time. For cargo handled by ATF we prepare the declaration data together with the dispatch.
Several containers sailed on one vessel and their combined value exceeded the per-conveyance limit — the loss above the limit is not covered.
We set the limit allowing for consolidation on one vessel or train and agree excess amounts with the insurer in advance for large lots.
The bank requires a policy for this particular lot under the letter of credit, while the importer only has the open cover.
We request from the insurer a policy or certificate for the individual lot under the open cover, with the details the letter of credit requires.
Documents
To conclude an open cover the insurer needs a picture of the annual cargo flow; after that documents are needed per shipment for the declaration. The delivery term decides which lots fall under the contract at all.
Incoterms
- FOB / FCA / EXW
- transit risk is on the buyer — shipments go under the importer's open cover
- CFR / CPT
- seller pays freight, buyer insures
- CIF / CIP
- the seller insures — such lots are usually excluded from the buyer's open cover
Documents
- Proposal form
- cargo types, routes, annual volume, packing
- Loss record
- losses in previous years, if any
- Declaration (bordereau)
- shipment register: cargo, value, conveyance, dates
- Invoice
- per lot — the basis of the sum insured
- Transport document
- B/L, SMGS, CMR, AWB — reference for the declaration
FAQ
It is a contract for a period, usually a year, under which all similar lots of cargo are insured on pre-agreed terms. No separate policy is issued per lot: the assured reports shipments to the insurer and they are covered. In the Russian Civil Code this is set out in Art. 941 "Insurance under a general policy".
Terms and rates are agreed once rather than per lot, so there is less paperwork and no risk of cargo travelling uninsured because a policy was forgotten. The rate reflects annual volume. An open cover makes sense for regular shipments; with a few shipments a year single policies are simpler.
The insurer may decline the claim for that lot or apply the consequences set out in the contract. The Russian Civil Code requires every lot within the open cover to be reported, even if it has already arrived safely. Selective declaring — only the risky lots — is picked up at reconciliation and treated as a breach.
A bordereau is a register of shipments the assured sends to the insurer: cargo, sum insured, conveyance, route, dates. It is used to calculate the premium and confirm cover for specific lots. Timing and format — monthly, per shipment or before departure — are set by the contract.
Yes. Under Art. 941 of the Russian Civil Code the insurer issues, at the assured's request, policies for individual lots falling under the open policy. Such a document is needed by a bank under a letter of credit or by a buyer under the contract as proof that this particular lot is insured.
It is the maximum amount the insurer covers for all of the assured's cargo on one vessel, train or aircraft. If several containers travel on the same voyage and their total value exceeds the limit, the excess is uninsured. For large lots the excess is agreed with the insurer in advance.