What is the basis for coverage in an annual transit policy?

The annual transit policy is designed to provide comprehensive coverage for all shipments conducted throughout the year, making it ideal for businesses that regularly transport goods. This type of policy simplifies the insurance process by allowing the policyholder to have continuous coverage for multiple shipments without needing to obtain insurance for each individual shipment.

The key aspect of this coverage is that it encompasses all in-transit shipments for the duration of the policy, ensuring that goods are protected from various potential risks while they are being transported. This can include damage from theft, accidents, or other unforeseen events that may occur during transit. As a result, businesses can operate with greater peace of mind, knowing that all shipments are covered under a single policy for the entire year.

Other options refer to different types of coverage that are either more limited or specific. The open covering all risks during transit choice would imply a more extensive coverage but is not specifically related to the structure of an annual policy. The specific risks associated with transit and named peril basis choices indicate limited or defined coverage which does not align with the comprehensive nature of an annual transit policy that intends to cover all shipments throughout the year.