Final answer:
Contingency cargo insurance is most valuable when shipping high-value goods, as it provides financial protection in case of loss or damage. Even when using a reliable carrier, accidents can still happen and insurance coverage is necessary. However, when shipping low-value goods or over short distances, the need for such insurance may be less significant.
So option (A) is correct.
Step-by-step explanation:
Contingency cargo insurance is valuable when shipping high-value goods. In situations where the goods being transported have a significant monetary value, it is important to have insurance coverage to protect against potential loss or damage. Shipping high-value goods without insurance can be risky and result in financial losses.
Even if a reliable carrier is used, accidents and unforeseen events can still occur during transportation. In such cases, contingency cargo insurance provides financial protection to cover any potential losses.
On the other hand, when shipping low-value goods or over short distances, the need for contingency cargo insurance may be less significant as the potential financial risk is lower.