19 Feb, 2022
Open policy (OP)
A type of insurance policy intended to cover an indefinite number of future individual shipments. The insurance contract remains in force until
cancelled. Under the open policy, individual successive shipments are periodically reported or declared to the insurer and automatically covered on or after the inception date. Open policies can provide efficiency and savings for all parties concerned, especially when the insured conducts a significant volume of highly-similar transactions.