Final answer:
Cargo insurance is the Inland Marine policy that protects against loss of goods in transit, ensuring compensation for the insured party in case of such financial loss.
Step-by-step explanation:
The type of Inland Marine policy that protects the shipper or receiver of goods against loss to goods in transit is known as cargo insurance. This insurance is an application of an insurance method where policyholders make regular payments to an insurance entity, and in turn, the insurance company compensates the insured party if there is a significant financial loss due to events that the policy covers, such as damage or loss of goods in transit.
A money-back guarantee is related but different, as it is a promise that the seller will refund the buyer's money if specific conditions are met. On the other hand, moral hazard refers to the diminished incentive to protect oneself from a risk when one is insured against it. Lastly, the practice of collateral is another form of securing an entity against unforeseen, detrimental events, which can be comparable to the insurance principle of safeguarding financial interests.