Final answer:
Aircraft Liability insurance covers an airline's liability for loss or damage to goods of others during transport. It is distinct from insurances covering ground incidents or manufacturing defects.
Step-by-step explanation:
The type of insurance that insures an airline's liability for loss or damage to goods of others being carried on it is Aircraft Liability. This type of insurance specifically relates to the risks an airline faces when it comes to the responsibility of transporting cargo. If the cargo is damaged or lost during transit, Aircraft Liability insurance would come into play to cover the financial damages that the airline is liable for. Unlike Hangarkeeper's Liability, which covers damage to aircraft while they are stored on the ground, or Aviation Product Liability, which pertains to manufacturers of aviation products and parts, Aircraft Liability insurance is directly related to the operational aspect of air transportation.