Cargo Insurance Certificate

Cargo Insurance Certificate

Cargo Insurance Certificate in International Trade

Meaning of Cargo Insurance Certificate, according to the Dictionary of International Trade (Global Negotiator): A document indicating the type and amount of insurance coverage in force on a particular shipment. Used to assure the consignee that insurance is provided to cover loss of or damage to the cargo while in transit. In some cases a shipper may issue a document that certified that a shipment has been insured under a given open policy, and that the certificate represents and takes the place of such open policy, the provisions of which are controlling. Because of the objections that an instrument of this kind did not constitute a “policy” within the requirement of letters of credit, it has become the practice to use a special marine policy. A special marine policy makes no difference to an open policy and stands on its own feet as an obligation of the underwriting company. Also called insurance certificate and special cargo policy. See bordereau; open policy; special marine policy. Model of Cargo Insurance Certificate.