Cargo insurance provides financial protection against loss or damage to goods while they are being transported from one location to another. It covers shipments moved by sea, air, rail, or road, safeguarding the interests of importers, exporters, and logistics providers. Transportation involves various risks such as accidents, theft, fire, rough handling, bad weather, or natural disasters—all of which can result in partial or total loss of cargo. Cargo insurance ensures that if such incidents occur, the owner or shipper receives compensation based on the insured value of the goods.