Question

Coverage can be purchased for a variety of losses. Identify three types of losses that might be insured by owners of cargo.

Answer 1

Cargo owners can purchase insurance to cover theft, damage, and loss of goods. These types of insurance offer protection against financial losses that could arise from incidents such as theft, natural disasters, or total loss of cargo at sea.

Step-by-step explanation:

Owners of cargo can insure against a variety of losses to protect their financial interests. Three types of losses that might be insured by cargo owners include:

• Theft of cargo, where the insurance would cover losses arising from stolen goods.
• Damage to goods, which covers instances of physical damage to the cargo, for example, due to accidents or natural disasters.
• Loss of cargo, which encompasses situations where the goods are completely lost, such as from sinking or capsizing at sea.

Insurance provides a safeguard against significant financial losses for businesses involved in the transportation of goods.