What type of Ocean Marine insurance covers goods while they are in transit over water?

Cargo insurance is specifically designed to protect goods while they are in transit over water. It provides coverage for loss or damage to cargo due to various risks such as sinking, capsizing, damage from rough seas, theft, and other maritime perils. This type of insurance is essential for businesses that ship goods internationally or across bodies of water, as it ensures that their investment is safeguarded against unforeseen events that could result in significant financial loss.

In contrast, hull insurance covers physical damage to the ship itself rather than the cargo it carries. Freight insurance pertains to the income loss for the shipping company if the cargo is damaged, rather than providing direct coverage for the goods. Liability insurance, while important in the maritime context, focuses on legal liabilities incurred from damages to third parties or their property rather than insuring the goods themselves. Understanding these distinctions helps clarify why cargo insurance is the appropriate coverage for goods transported over water.