A cargo insurance certificate is evidence that stated cargo insurance coverage applies to a specified shipment under a policy or open cover. It summarizes coverage details for the shipment but must be read with the policy terms, exclusions and claims conditions.
What information does the certificate show?
- Insured party and insurer
- Certificate and policy references
- Goods, voyage and conveyance
- Insured value and currency
- Coverage clauses and deductible
- Issue date and claims contact
When is it required?
A buyer, bank, carrier or contract may require the certificate as evidence of coverage. Documentary trade-finance terms can specify the insured amount, risks, date and party to whom claims are payable.
Certificate vs. policy
The policy or open cover sets the governing insurance terms. The certificate evidences coverage for a particular shipment. A certificate with a shipment value does not by itself establish that every cause of loss is insured.
What should be checked?
Compare the insured parties, goods, route, dates, conveyance, value and currency with the commercial documents and contract. Review exclusions, deductible, geographic limits and claims-notification requirements before relying on the certificate.
