[O025]

open policy

An insurance contract designed to cover shipments fluctuating in number and value with varying amounts of insurance, requiring the insured periodically to report details of those shipments to the insurer. An initial deposit premium is required at the inception of the policy, with premiums due calculated after the reports are received by the insurer. The open policy does not specify an expiration date, which is another feature of its open and continuous nature. Ocean marine cargo policies are generally written on this basis.

(See reporting policy (or form).)