Question

A shipper wants to obtain insurance coverage on both outgoing and incoming shipments while in transit. This type of coverage is called:

(A) Cargo coverage

(B) Freight coverage

(C) Hull coverage

(D) Liability coverage

Answer 1

Cargo coverage is the correct answer, providing insurance for goods in transit whether importing or exporting.

Step-by-step explanation:

The insurance coverage that a shipper would want to obtain for both outgoing and incoming shipments while in transit is known as Cargo coverage (Option A). Cargo coverage is designed to insure the goods being transported, regardless of the mode and means of transport. This type of insurance is critical for businesses that rely on importing and exporting goods, as it protects their financial investment against loss or damage of merchandise during transportation. In contrast, Freight coverage (B) typically refers to the charges paid for transport, Hull coverage (C) is related to the ship itself, and Liability coverage (D) involves legal liabilities.