What is cargo insurance?

• A. Insurance coverage for buildings used to store goods.
• B. Insurance coverage for goods in transit against loss or damage.
• C. Insurance for employees' personal belongings.
• D. Insurance that covers only domestic shipments.

Answer: (B)

Cargo insurance protects goods while they are in transit, providing coverage against loss or damage during shipment. This is the best answer because it specifically targets the movement of goods from origin to destination, rather than insurance for storage facilities (which would be warehouse or property insurance) or for a person’s personal belongings. It also isn’t limited to domestic shipments; many cargo policies cover international moves across different transport modes, such as truck, ship, plane, or rail. In practice, this type of insurance helps buyers and sellers manage the risk that goods may be lost, damaged, or stolen while they are en route, with terms that can vary from all-risk to perils-specific coverage.