Cargo losses coverage is made obvious by its name, but needs some clarification. Its other commonly used name is freight insurance.

Cargo loss or freight insurance protects against damage or loss to anything shipped. It covers every means of shipping the cargo, land, sea or air, as well as the causes of the damage or loss. 

It pays the customer for the company negligence which caused the loss or damages. The coverage also pays regardless of the specific, actual cause of the damage. Import and export businesses, any other business dependent upon shipping, and the consuming public purchase this protection.