What does freight insurance cover for shipping businesses?

Freight insurance is specifically designed to protect shipping businesses from financial loss associated with the transportation of goods. It typically covers the value of the goods being shipped, ensuring that in the event of damage, loss, or theft during transit, the business can recover its investment.

The correct choice highlights that freight insurance can address profit loss tied to shipping costs, as it provides coverage not just for the physical cargo but also supports the financial stability of the business when shipments do not go as planned. By safeguarding against the potential financial setbacks stemming from shipping mishaps, this insurance enables shipping businesses to maintain their operations and profitability.

In contrast, costs of cargo delivery, loss of business income, and passenger injury claims fall outside the typical purview of freight insurance. Cargo delivery costs are operational expenses not covered by freight insurance; loss of business income pertains to broader operational disruptions rather than specific shipping incidents; and passenger injury claims are usually associated with other types of liability insurance, especially in the context of transportation services that involve passengers.