Documentation
Certificate of Insurance
A document evidencing that cargo insurance is in place for a specific shipment, stating the sum insured, the cover conditions, and where claims are to be presented.
In depth
The certificate is the shipment-level proof of cover, usually issued under a wider open policy that the insured holds. It matters most under CIF and CIP, where the seller is contractually obliged to insure for the buyer's benefit and must hand over evidence that lets the buyer claim directly. The detail worth reading is the clause set: Institute Cargo Clauses (A) is all-risks, while (B) and (C) are named-perils covers that exclude a great deal. A certificate can be perfectly valid and still leave a buyer uncovered for the loss that actually occurs.
Key points
- Shipment-level evidence of cover, usually under an open policy
- Required from the seller under CIF and CIP
- Clauses (A) is all-risks; (B) and (C) are restricted named-perils
- Check the sum insured is at least 110 percent of invoice value