Marine Insurance: Types, and Policies

CHECK PRICEOPEN APP

Marine insurance is financial protection that includes various types of coverage and policy forms for risks related to cargo shipment, vessel damage, loss of freight income, and legal liability during marine operations.

Marine insurance is generally differentiated by the insured object and the form of the policy. The insured objects include cargo, vessel hull, freight, and third-party liability. The policy forms include voyage policies, time policies, mixed policies, as well as floating policies or blanket policies for repeated shipments. In this article, a floating policy refers to a declarative policy for repeated shipments, while a blanket policy is used as a term for collective coverage over many shipments within one period.

Marine insurance enables shipping operators, cargo owners, and logistics companies to choose a combination of coverages that matches cargo value, shipment frequency, and claim risks. The right combination of policies helps companies reduce losses when cargo is damaged, vessels experience incidents, or third-party claims arise during sea transport.

What is Marine Insurance?

Marine insurance is an insurance contract under which the insurer is obliged to indemnify the insured for losses resulting from maritime perils during a sea voyage, in accordance with the terms stated in the policy. In legal terms, marine insurance protects a legitimate interest against maritime risks. The interest may attach to the vessel, cargo, freight, as well as third‑party legal liability during the sea voyage. Financial losses arising from sinking, collision, fire on board, extreme weather, or other similar maritime perils can be transferred to the insurer through claim payments.

Marine insurance works by first assessing the interest to be insured and the maritime risk profile. After the risk assessment, the insurer prepares a policy that sets out the insured object, covered perils, sum insured, and the obligations of each party. During the insurance period, the insured pays premiums to the insurer. If a covered loss occurs, the insured has the right to file a claim so that the insurer pays compensation based on the principle of indemnity and the existence of insurable interest at the time the loss occurs.

What are the types of marine insurance policies available?

The types of marine insurance policies available are essentially distinguished by how the coverage period and voyage scope are determined, so that shipowners, cargo owners, and business operators can align protection with their operating patterns and shipment frequency. Five main policy types most commonly used are voyage policies, time policies, mixed policies, floating policies, and blanket policies. Each policy type has a different structure for duration, level of flexibility, and method of shipment declaration.

• Voyage Policy: A Voyage Policy is a marine insurance policy that provides cover for a single specified voyage from one port of origin to one port of destination. Cover under a voyage policy is only active while the vessel is on the route stated in the policy.
• Time Policy: A Time Policy is a marine insurance policy that covers the vessel or the insured interest for a specified period, for example 6 or 12 months, without being tied to a single route. The type of policy is suitable for merchant vessels operating continuously with a dense sailing schedule.
• Mixed Policy: A Mixed Policy is a marine insurance policy that combines elements of a voyage policy and a time policy. The policy covers the insured object for a specified period as well as for specified voyages under a single contract, so that protection is more flexible in following vessel operations.
• Floating / Open Policy: A Floating Policy / Open Policy is a marine insurance policy arranged for shippers who dispatch cargo on a regular basis. One umbrella policy is agreed in advance, then each subsequent shipment only needs to be declared with its value and voyage details, without the need to issue a new policy for each voyage.
• Blanket Policy: A Blanket Policy is a marine insurance policy that provides cover for many shipments or fleet units in a single package of insurance. The total sum insured includes many objects at once, and monitoring of compliance with the sum insured is carried out at the aggregate level agreed in the contract.

Summary of policy types and their uses

The range of policy types gives shipping companies, exporters, and cargo owners in Indonesia room to choose the coverage structure that is most efficient for their business patterns, from one‑off project voyages to daily logistics operations with high shipment volumes.

What is a Voyage Policy in Marine Insurance?

A voyage policy in marine insurance is a policy that provides coverage for a single specified voyage from the port of origin to the port of destination. The port of origin and the port of destination must be expressly stated in the policy. In a voyage policy, the risk is covered from the time the vessel commences the voyage from the port of departure and ends when the vessel or cargo arrives at the port of destination. Thus, the protection only applies to one shipping route that has already been specified in the policy.

Voyage policies are commonly used to insure cargo or vessels in incidental shipments, for example project shipments or specific contracts that are not carried out every month. A common example of using a voyage policy is a one‑time coal shipment from Jambi to Cirebon. Another example is a one‑time container export from Tanjung Priok to a port in East Asia. For exporters or importers who do not ship regularly, voyage policies are usually more efficient than time policies. The premium is paid for one voyage only, so the insurance cost follows the actual shipment frequency.

What is a Time Policy in Marine Insurance?

A time policy in marine insurance is a policy that provides coverage for a vessel or the insured object for a specified period of time without being tied to a single sailing route. The duration of a time policy is usually up to 6 or 12 months, depending on the agreement between the insurer and the insured. In a time policy, the risk is covered from the date and time stated in the policy and ends on the date and time the coverage period expires. Every voyage made by the vessel during that period remains within the scope of the insurance.

Time policies are widely chosen by owners of merchant vessels that operate on a routine basis. The time‑based protection structure provides continuous cover for the hull and machinery throughout the year without the need to purchase a new policy for each voyage. Some time policies also contain special clauses, for example the Full Premium if Lost Clause, which is a provision that requires the premium to still be paid in full for one year even if a total loss occurs to the vessel or cargo. For the insurer and the insured, a time policy provides certainty regarding premium obligations throughout the year. The limits of coverage are also clearly defined for the entire period during which the policy is in force.

What is a Mixed Policy in Marine Insurance?

A mixed policy in marine insurance is a policy that combines the characteristics of a voyage policy and a time policy. Coverage under this policy is still limited by a specific period agreed upon at the outset. In practice, a mixed policy protects against marine risks that occur while the vessel is within the agreed coverage period and operating on the specified voyage routes. The scope applies both when the vessel is at sea and when it is in port during that time frame.

Mixed policies are usually used when the operational structure of the vessel does not fully fit either a pure voyage policy or a pure time policy. For example, a chartered vessel that performs several consecutive voyages within a certain period, or a medium‑term transportation project with fixed schedules and routes. In this context, the insurer will assess the combination of the period duration, the number of voyages, and the risk profile of the routes to determine the premium and any special clauses. The approach gives shipowners or cargo owners greater flexibility of protection without having to issue a new policy for each voyage, while still maintaining a clear coverage period limit.

What is a Floating Policy in Marine Insurance?

A floating policy in marine insurance is a policy that provides coverage for many shipments under one master policy during a specified period. Each shipment is declared to the insurer within that period. In a floating policy, the insurer and the insured first agree on the maximum sum insured. Each time there is a new shipment, the insured must submit a declaration containing the type of cargo, vessel name, destination, and cargo value so that the shipment is recorded as part of the coverage.

A floating policy is designed for exporters, importers, and logistics operators with a high shipment frequency because it eliminates the need to issue a new policy for every separate shipment and reduces the administrative burden. As long as the accumulated value of declared shipments has not exceeded the coverage limit and declarations are made honestly in accordance with statutory provisions, this policy provides automatic cover for all eligible shipments. In this way, the risks of damage, loss, or theft of goods during sea voyages can be managed more efficiently within a single continuous protection scheme.

What is a Blanket Policy in Marine Insurance?

A blanket policy in marine insurance is a policy that covers all cargo shipments or a group of insured objects under a single aggregate sum insured. All shipments made during the policy period are automatically included in the coverage without the need for shipment‑by‑shipment declarations. A blanket policy is different from a floating policy because the insured is not required to report the details of each shipment individually. All cargo moved during the policy period is directly protected based on the terms, limits, and premium rates agreed at the start of the contract.

A blanket policy is a marine insurance policy that provides protection for many shipments or fleet units in a single package of insurance. This policy can also be extended to warehouse stock as agreed with the insurer. A blanket policy is very suitable for companies with very high shipment volumes, such as major exporters, national distribution companies, or logistics operators handling hundreds of shipments per month, because this policy structure reduces the need for per‑shipment administration while providing consistent protection certainty across the entire shipment chain.

In Indonesia, policies with blanket characteristics are generally issued by general insurance companies registered with the Financial Services Authority (OJK). The risk coverage clauses usually refer to the New Marine Policy Form (NMPF) for international shipments or the Indonesian Standard Marine Cargo Policy (PSAPBI) for domestic shipments.

What is Marine Cargo insurance?

Marine cargo insurance is an insurance product that provides indemnity for loss of or physical damage to goods during the transportation process from the place of origin to the place of destination. The coverage may include carriage by sea, land, and air as part of a single logistics journey. Marine cargo insurance functions to protect the interests of cargo owners against risks that are beyond the insured’s control. The protection applies when goods change hands through ports, vessels, containers, and intermediate modes of transport until the goods are received by the consignee.

Marine cargo insurance covers loss of and physical damage to goods due to risks during transit. The breadth of coverage is determined by the choice of Institute Cargo Clauses (ICC) agreed in the policy, ranging from ICC A, which covers all risks except explicit exclusions, ICC B, which covers specified risks such as fire, stranded vessel, and sea‑water damage, to ICC C, which only covers limited risks such as fire, explosion, and vessel collision.

In Indonesia, this coverage is available through general insurance companies licensed by the Financial Services Authority (OJK). Domestic policies generally refer to the Indonesian Standard Marine Cargo Policy (PSAPBI), while international policies refer to the standard New Marine Policy Form (NMPF).

What are the Types of Marine Cargo Insurance Coverage?

The types of marine cargo insurance coverage are determined by the choice of coverage clauses agreed in the policy. Three main clauses that serve as the international standard are Institute Cargo Clauses (ICC) A, B, and C. In Indonesia, these correspond respectively to Jaminan 1, Jaminan 2, and Jaminan 3 under the Indonesian Standard Marine Cargo Policy (PSAPBI).

• ICC A (Jaminan 1): ICC A is the clause with the broadest coverage, protecting cargo against all risks of loss and physical damage during transit, except for risks that are expressly excluded in the policy. Examples include flood, cyclone, theft, and damage due to cargo‑handling equipment.
• ICC B (Jaminan 2): ICC B is a clause with intermediate coverage that insures against all risks covered under ICC C, plus several additional risks. The additional risks include earthquake, volcanic eruption, lightning, ingress of seawater into the vessel or container, washing overboard, and total loss of any package lost overboard or during loading and unloading.
• ICC C (Jaminan 3): ICC C is the clause with the narrowest coverage, insuring only against risks specifically named in the policy. Examples of such risks include fire, explosion, stranded vessel, sinking, collision of land conveyance, collision between vessels, and jettison (discharge of cargo overboard to save the vessel).

These three ICC clause options allow cargo owners in Indonesia to align insurance coverage with cargo value and risk tolerance. In general, high‑value or fragile cargo is better suited to ICC A, while bulk cargo or lower‑value goods are often adequately covered under ICC C for premium efficiency, as long as the risks faced remain within the clause’s coverage.

What risks are Covered under Marine Cargo Insurance?

Marine cargo insurance covers loss of or physical damage to goods that occurs unexpectedly during the course of transit. The types of risks covered depend on the ICC clause selected in the policy.

The basic risks that are generally covered under ICC C, and are also included in ICC B and ICC A, include fire or explosion, vessel running aground or sinking, capsizing, collision of the conveying vehicle, jettison (discharge of cargo overboard), discharge at a port of distress, as well as general average and related salvage charges.

In addition to these basic risks, ICC B adds cover for earthquake, volcanic eruption, lightning, ingress of sea water into the vessel or container, washing overboard, and total loss of any package due to falling during loading or unloading. ICC A includes all risks covered under ICC B and also other risks such as theft, damage due to rough handling, and malicious acts of third parties, provided they are not within the policy’s list of exclusions.

Several groups of risks are not covered by any of the ICC clauses, including ICC A. Examples include damage resulting from the inherent vice of the goods themselves, ordinary leakage or weight/volume loss during transit, and damage due to delay. Losses arising from war, strikes, and civil commotion are also not covered, unless expressly extended by war clauses and strike, riot, and civil commotion (SRCC) clauses.

What is Marine Boat Insurance?

Marine boat (hull) insurance is an insurance product that provides indemnity for physical damage to or loss of the vessel’s hull, machinery, and equipment. Coverage applies to navigational risks that occur while the vessel is operating at sea or in other waters. In Indonesian practice, marine hull insurance is known as hull and machinery (H&M) insurance. The policy is usually arranged as a valued policy, so that cover is provided based on a value agreed between the insurer and the insured at the start of the contract (agreed value or insured value), which is stated in the schedule of insurance and becomes the basis for calculating indemnity for both partial and total loss.

Marine hull insurance differs from marine cargo insurance because the insured object is the vessel itself, not the goods carried on board. As a result, the policyholder is typically the shipowner or fleet operator, not the cargo owner or exporter. Hull insurance is also different from protection and indemnity (P&I) insurance. Hull insurance covers physical damage to the vessel’s hull and machinery caused by collision, fire, grounding, storm, and piracy. By contrast, P&I insurance covers legal liability to third parties, for example, crew injury, damage to other vessels, and marine pollution arising from the operation of the insured vessel.

What does Boat Insurance Cover for Vessel Owners?

Marine hull insurance covers loss of and physical damage to the vessel’s hull, machinery, and operational equipment caused by perils of the sea and navigational risks, including collision with another vessel or a fixed object, grounding, heavy weather, fire, explosion, piracy, and damage arising from unintentional negligence of the master or crew. In addition to physical damage, hull insurance with the standard Institute Time Clauses Hull (ITC Cl. 280) also covers general average contributions, salvage charges, and sue and labour charges. This policy also typically provides cover for up to three‑quarters of collision liability to another vessel, so that the shipowner obtains protection for both partial damage and total loss under a single policy.

In Indonesia, hull insurance is generally issued on the basis of an agreed value set at the inception of the contract, in line with Section 27 of the Marine Insurance Act 1906. This means that the indemnity amount is fixed before any claim occurs and does not depend on the vessel’s market value at the time of loss. The agreed value approach provides financial certainty for shipowners. The cost of partial repairs and total loss replacement is paid based on the value stated in the policy, rather than on an estimate of the vessel’s value that continuously declines due to depreciation during its operational life.

How does Insuring a Boat differ from Cargo Insurance?

Marine hull insurance and marine cargo insurance mainly differ in the object insured and the party holding the policy. The differences also appear in the types of risks they focus on and how the policies are structured to follow patterns of operations at sea. Marine hull insurance is designed to protect the economic value of the vessel as the shipowner’s physical asset. Cargo insurance focuses on protecting goods owned by exporters, importers, or other cargo owners during transportation.

The comparison of these dimensions between hull insurance and cargo insurance shows that shipowners need hull insurance to protect the value of their fleet assets, while cargo owners need cargo insurance to protect their shipments. The two policies can operate simultaneously on the same sea voyage without overlapping, because the objects and interests insured are indeed different. In Indonesian practice, merchant vessels carrying export cargo typically carry both protections at once. The shipowner arranges the hull policy, while the exporter or importer arranges the cargo policy separately.

What Factors Affect a Boat Insurance Quote?

Marine hull insurance offerings are influenced by the vessel’s technical characteristics, how the vessel is used, its trading area, and its risk history. All these elements determine how likely claims are to arise during the policy period.

• Vessel size and value: The vessel’s physical size, gross tonnage, and insured value are primary premium drivers because larger and more expensive vessels can generate larger financial losses when an incident occurs. As an illustration, small recreational boats may be charged close to the lower end of premium ranges, while high‑value vessels sit toward the upper end of annual premium ranges.
• Location and trading area: The vessel’s port of mooring and the trading area permitted under the policy affect the rate because waters with severe weather, heavy traffic, or high piracy risk are viewed as more hazardous. Vessels operating routinely on routes prone to tropical storms or in regions with a serious accident record tend to attract higher premiums. Conversely, vessels that only operate in calm waters or on relatively sheltered lakes and rivers usually obtain lower rates.
• Vessel use: The vessel’s purpose of use, whether for private recreation, passenger transport, commercial cargo, offshore support, or other special purposes, changes the profile of daily risk exposure. Vessels used for intensive commercial operations, long‑distance voyages, or high‑risk activities such as heavy towing and offshore services are usually charged higher premiums than recreational craft with limited operating hours. The reason is that exposure frequency to marine perils and claim potential is much higher.
• Vessel age and condition: The vessel’s age and maintenance quality directly affect the probability of structural damage or machinery failure, so older vessels with poor maintenance records tend to be categorized as higher risk. Many insurers apply higher rates or even decline full cover for very old vessels, whereas newly built vessels with good class, supported by regular dock surveys with satisfactory results, can obtain more competitive premiums.

The four factors shaping hull insurance offerings help shipowners understand why two vessels that appear similar can be quoted very different premium rates. Improvements in safety, maintenance, and the choice of safer routes can reduce the perceived risk from the insurer’s perspective.

What is the Classification of Marine Insurance?

Classification of marine insurance is the grouping of types of cover based on the object insured, the coverage period, and the value stated in the policy. The aim is for every participant in the maritime logistics chain to identify the product that best matches their interests and risk exposure. In Indonesia, this classification generally refers to four main categories based on the insured object and the function of the protection.

• Marine Cargo Insurance: Marine Cargo Insurance is a type of marine insurance that protects goods or cargo during transportation from the place of origin to the place of destination. Its risk coverage refers to ICC A, B, or C clauses according to the policyholder’s choice and the type of commodity shipped.
• Marine Hull Insurance: Marine Hull Insurance is a type of marine insurance that protects the vessel’s hull, machinery, and equipment against physical damage or loss caused by perils of the sea, fire, collision, grounding, and other navigational risks. The basis of cover is generally an agreed value determined at the inception of the contract.
• Freight Insurance: Freight Insurance is a type of marine insurance that protects shipowners or carriers against the loss of freight income that should have been received when the cargo carried is damaged or fails to arrive at the destination due to risks insured under the policy. Indemnity is generally paid proportionally to the portion of freight lost.
• Protection and Indemnity (P&I) Insurance: Liability Insurance is a type of marine insurance that covers the shipowner’s or operator’s legal liabilities to third parties. The coverage includes injury and death of crew or passengers, damage to other vessels caused by collision, liability for damaged cargo, and marine pollution arising from vessel operations.

The four marine insurance classifications do not stand alone in maritime practice. Commercial merchant vessels generally require a combination of hull insurance to protect the fleet, cargo insurance to protect cargo owners’ interests, and P&I insurance to cover legal liabilities to third parties. Understanding this classification is an important foundation for designing a comprehensive protection program.

Why is Marine Insurance Important for Shipping and Trade?

Marine insurance is important for shipping and trade because it acts as a risk‑mitigation mechanism that transfers the potential for large losses from incidents at sea from businesses to insurers. The system allows companies to continue export–import and goods distribution activities with a higher degree of certainty. Around 80% of global merchandise trade by volume is carried by sea. At this scale, marine insurance becomes a financial foundation that protects ships, cargo, and freight income from the impact of accidents, extreme weather, theft, and other unpredictable logistics disruptions.

From a financial protection perspective, marine insurance provides indemnity when cargo damage or loss, vessel damage, or third‑party liability claims occur. In this way, a single major incident does not immediately disrupt the cash flow and business continuity of shipowners, exporters, or importers. In addition, adequate insurance policies often become a prerequisite for banks and finance institutions to issue letters of credit or trade finance facilities. Marine insurance not only protects assets but also enables international trade transactions to take place more smoothly and with greater mutual trust between the parties.

What are the Advantages of Different Marine Insurance Policies?

The advantages of the various marine insurance policies lie in each policy’s ability to tailor protection to different operating patterns, shipment frequencies, and business scales. There is no single policy type that fits every shipping situation.

A voyage policy offers significant cost advantages for businesses with infrequent shipments because the premium is paid only for one specific route without any obligation to purchase annual cover. Voyage policy is most efficient for one‑off project shipments or first‑time export consignments.

A time policy offers operational convenience for shipowners whose vessels operate year‑round. The vessel remains protected even when it is berthed, under repair, or changing routes, without the need to arrange a new policy for each voyage.

A floating policy offers flexibility and administrative efficiency for exporters and importers with high shipment volumes. Each new shipment only needs to be declared under the master policy with no need to renegotiate terms and rates, so shipping operations are not delayed by the issuance of individual policies.

A blanket policy offers the highest advantage in simplifying the management of the shipping portfolio because all cargo within a policy period is automatically covered without per‑shipment declarations. For logistics companies handling hundreds of shipments per month, this structure makes risk management and insurance budgeting much easier and more predictable.

How to choose the right Marine Insurance Policy?

Choosing the right marine insurance policy starts with understanding the specific risk profile of the shipment or vessel operations, because the policy suitable for a merchant shipowner will differ from that suitable for a one‑off exporter or a distribution company with hundreds of shipments per month. There are six steps that can help shipowners, exporters, and logistics operators in Indonesia select the most efficient policy for their needs.

1. Determine the object that needs protection before comparing products, because shipowners need hull insurance to protect their fleet while cargo owners need cargo insurance, and both can run in parallel on the same sea voyage without overlapping.
2. Identify shipment frequency, because shippers making fewer than 10 shipments per year are more efficient using a voyage policy per shipment, while regular exporters and importers with more than 10 shipments per year are generally better off with an annual floating or blanket policy.
3. Consider commodity value and voyage route to determine the breadth of clauses required, because high‑value or fragile cargo on high‑risk routes requires ICC A, whereas low‑value bulk cargo on stable domestic routes is often adequately covered by ICC C with lower premium rates.
4. Set an accurate sum insured, because underinsurance will result in insufficient indemnity at claim time, while overinsurance means paying more premium than necessary.
5. Compare at least three quotations from insurers licensed by the OJK, looking not only at premiums but also at claim reputation, survey speed, and the completeness of exclusion clauses, so you are not surprised later when filing a claim.
6. Consult a marine insurance broker, because an experienced broker can design policy structures tailored to the specific risk profile of the fleet or commodity, help negotiate premium rates, and assist in the claims process so that protection is adequate in coverage and efficient in cost.

The six steps for choosing the right marine insurance policy apply both to purchasing a first policy and to annual policy reviews, and shipowners or exporters who follow this process consistently tend to obtain more precisely targeted protection structures than those who choose policies based solely on the lowest premium.

What is the Difference between Floating Policy and Blanket Policy in Marine Insurance?

The difference between floating policies and blanket policies in marine insurance mainly lies in how coverage is determined and how shipments are recorded. The differences also appear in the level of administrative flexibility granted to cargo owners or logistics operators. A floating policy manages coverage based on shipment declarations made from time to time. A blanket policy provides automatic protection for all shipments that meet the criteria within an agreed aggregate sum insured limit.

In practical terms, exporters and importers who want tighter control over each shipment and have diverse commodities are better suited to a floating policy. Companies with uniform shipments in very high volumes are usually better served by a blanket policy because there is no recurring administrative burden of declarations. Both are available in Indonesia through general insurers licensed by the OJK. The choice between them should be made after consulting a marine insurance broker who can evaluate the company’s risk profile and actual shipment volumes.

How does a Marine Insurance Policy claim Process Work?

The claims process for marine insurance policies in Indonesia proceeds through a series of structured stages that the insured must follow sequentially, from initial notification through to indemnity payment. The completeness of documentation is the key factor determining the speed and success of a claim. Incident notification must be made as soon as the loss is discovered. Many policies set a specific reporting deadline (for example, several working days), and unjustified delay can be grounds for the insurer to challenge the claim.

1. Report the incident to the insurer as soon as possible after the loss is discovered (ideally within 24–72 hours, in line with policy terms). Include the policy number, date of occurrence, location, and an initial description of the damage or loss so that the insurer can immediately appoint an independent surveyor to attend the site.
2. Secure the condition of the damaged cargo or vessel and do not move, discard, or repair the claimed object before the survey is carried out. Such actions can destroy evidence that the surveyor needs to verify the cause of loss and confirm whether the claim is consistent with the policy clauses.
3. Submit a formal claim or notice of recovery to any party suspected of being responsible, such as the shipping line, forwarder, or port operator, if there are indications of third‑party negligence causing the damage. The claim correspondence and responses from the carrier are among the mandatory documents in a claim submission.
4. Complete the claim documents in line with the list required in the policy or by the insurer. In general, these documents include a fully completed claim form, the original policy or insurance certificate, the bill of lading, commercial invoice, packing list, survey report, letters of claim to the carrier and their replies, and photographs of the damage. Claims not supported by complete documentation risk being delayed or rejected.
5. Follow the survey and investigation process conducted by the surveyor or loss adjuster appointed by the insurer. They are responsible for inspecting the physical condition of the cargo or vessel, identifying the cause of loss, and calculating the indemnity amount based on the policy and the agreed sum insured.
6. Receive the claim decision and payment after the insurer completes its evaluation of the surveyor’s report. For well‑documented claims, marine cargo insurance payments in Indonesia generally take from a few weeks to several months from the date complete documents are received, depending on case complexity and claim size.

The overall claims process will run faster and more smoothly when the insured has prepared shipping documentation neatly, even before the voyage begins. Well‑organised invoices, bills of lading, packing lists, and insurance certificates enable insurers and loss adjusters to verify the loss value more quickly without repeated requests for additional documents.