Which type of insurance might a business purchase to cover losses in transportation due to marine incidents?

• A. Marine insurance
• B. Property insurance
• C. Business interruption insurance
• D. General liability insurance

Answer: (A)

A business would purchase marine insurance to cover losses incurred during the transportation of goods over water or other marine environments. Marine insurance specifically addresses the risks associated with the shipping and transportation of cargo, including damage or loss due to various marine incidents such as sinking, weather hazards, or theft while the goods are in transit.

This type of insurance is tailored to the unique challenges and exposures that come with maritime operations, making it the most appropriate and effective means of protection for businesses involved in transporting goods via water. Property insurance, while useful for covering physical assets, does not typically encompass the specific risks associated with marine transportation. Similarly, business interruption insurance focuses on income losses due to disruptions in operation rather than direct damages to goods in transit, and general liability insurance mainly protects against claims arising from bodily injury or property damage not specifically related to marine activity. Thus, for a business seeking coverage for losses during transportation due to marine incidents, marine insurance is the ideal choice.