This covers risk of damage or loss to cargo whilst being transported from one place to another. The mode of transport used defines the name of the insurance, such as Marine Cargo, Air Cargo, Land Transit etc. The coverage may extend from place of manufacture up to place of final delivery, depending on the clients requirements.
Also, extent of coverage varies from Clause A (also sometimes called All risks), to Clause C. Additionally banks will require client to purchase War & SRCC cover. Depending on the terms fixed between the supplier & purchaser, goods may be valued in different ways such as C&F, CIF, FOB etc.