Marine Open Cover Vs Single Transit Policy

When you are transporting goods within the UAE or around the world, you need marine cargo insurance that caters to your logistic and financial requirements. But now the question arises: Do you go for a Marine Open Cover Policy or for a Single Transit Policy? Both insurance choices protect your valuables in transit from loss, theft, and damage.

This blog talks about the difference between insurance and helps you choose the best one that suits your business.

Understand Your Shipping Frequency

If your business handles frequent shipments, whether . It is a long-term contract between the insurer and the insured, which takes effect automatically and stays in place as long as there are pre-agreed terms, allowing you to avoid the inconvenience of buying insurance for each individual shipment.

A Single Transit Policy, on the other hand, caters to businesses that are infrequent shippers or are exploring new routes and markets. The policy is acquired individually for every shipment, meaning that exposure can be customised according to the type of load, route, and mode of transport.

Ease of Administration
One of the most impressive characteristics of Marine Open Cover is that it reduces a significant amount of paperwork. with minimal intervention from your team. This solution is designed to be set and forgotten.

More admin With a Single Transit Policy there is just more admin involved – there are admin tasks on each shipment, including documentation, assessing risk and issuing the policy. It can be a bit more labour-intensive but allows for per-shipment control.

Cost Implications

For frequent shippers, Marine Open Cover may result in cost benefits. Insurers monitor you for volume and risk over time, and you may eventually pay reduced premiums and predictable costs on an annual basis.

In comparison, Single Transit Policies can be more expensive per shipment, especially if you only ship a few times each year. But for infrequent shippers with unusual or high-value cargo, it may be affordable.

Scope of Coverage

Both policies can protect against common risks, such as fire, theft, and natural disasters. They are generally subject to Cargo Clauses, War Risk Extensions, and Warehouse-to-Warehouse covers. Marine Open cover policies are included in the overall policy. Single Transit Policies are usually more restrictive as a standard, with cover typically available for specific extensions or high-risk areas at an additional cost.

Flexibility and Risk Appetite

Marine Open Cover stands for stability, flexibility, and reliability; it is ideal for business owners who operate in a stable manner and trade on a regular basis. Whereas Single Transit is ideal for customised consignments. Only need it once, only cover. Experimenting with an export market involves various types of risks.

Final Words

Whether Marine Open Cover or Single Transit Insurance is right for your business needs and goals. The right cargo insurance depends on how you move goods and how often. If you want to protect your cargo and ensure worry-free shipping without unexpected financial setbacks, reach out to the experts at CoverB today, who are leading  insurance service providers in the UAE.