Blanket Policy

A Blanket Policy is a special form of policy in cargo transportation insurance, in which the insurer and the insured agree on an overall insured amount and coverage scope, automatically covering multiple shipments of goods within a certain period (usually one year) without the need for individual declarations or issuance of separate policies. It is commonly used by enterprises with long-term, frequent export business, as it simplifies insurance procedures, avoids under-insurance, and enjoys preferential rates. Points to note: the insured must periodically declare the details of actual shipments to the insurer, and the premium is settled based on the actual shipped amount; the policy usually stipulates a maximum compensation limit per vessel/shipment, and any excess must be covered separately. Differences from Specific Policy and Open Policy: a Specific Policy covers a single shipment and involves cumbersome procedures; an Open Policy also provides automatic coverage but usually requires individual declarations and may have an overall limit, whereas a Blanket Policy emphasizes 'blanket' coverage, has a more flexible declaration cycle, and a different premium settlement method. Foreign trade practitioners should ensure accurate declarations to avoid claim disputes caused by under-declaration.