Commercial Maritime Law

In an open-cover insurance policy, the insured shall be obligated to notify the insurer of the following shipments for which the insurer agrees to provide coverage: 1. All shipments made for the benefit of the insured, or in implementation of purchase or bill of sale where insurance is mandatory. Coverage of such shipments shall automatically take effect if exposed to the insured risk, provided that the insured gives notice thereof within the period specified in the insurance policy. 2. All shipments made for the benefit of a third party on whose behalf the insured seeks insurance, provided that the insured has an interest in such shipment, in his capacity as a commission agent, a trustee of the goods, or otherwise. Insurance of such shipments shall only come into effect as of the date the insurer is notified thereof.