Floating Insurance

Floating Insurance is a special arrangement in foreign trade insurance, mainly used for scenarios involving partial shipments or long-term continuous supply. Its core features are: the insured and the insurance company agree on a total insured amount and coverage scope, but the specific shipment time, quantity, vessel name, and other details of each batch of goods are not yet determined at the time of insurance. The insurer collects premiums in advance based on the total insured amount, and after each batch of goods is actually shipped, the insured declares to the insurance company (Declaration), and the insurance company calculates and adjusts the premium accordingly. This term is similar to 'Open Cover', but Floating Insurance emphasizes more the 'floating' insured amount and declaration mechanism, and is often used under trade terms such as FOB and CIF, with the buyer or seller arranging unified insurance. Precautions include: each batch of goods must be declared truthfully, otherwise claims may be affected; the declaration deadline and premium settlement method must be clarified; avoid confusion with 'Floating Policy', which usually refers to insurance covering multiple voyages of a single vessel. Using Floating Insurance can simplify the procedures for insuring each shipment, reduce the risk of missed insurance, and is suitable for long-term, multi-batch export business.