What type of insurance covers the risks associated with international trade?

Marine insurance is specifically designed to cover the risks associated with international trade and transportation of goods over water. This type of insurance provides protection against a variety of potential losses, including damage to the cargo and liabilities related to shipping operations.

In the context of international trade, marine insurance plays a critical role because goods often have to be transported via sea, exposing them to unique risks such as rough seas, shipwrecks, and theft. This coverage is tailored to address the complexities and risks that arise not just from the movement of goods, but also from the legal requirements and potential liabilities that could arise during transit.

Property insurance generally covers damage to physical assets but does not specifically address the unique risks of marine and international trade. Casualty insurance primarily protects against liability for injuries or damages to third parties, while life insurance is focused on the life and health of individuals rather than the risks associated with goods in transit. Therefore, marine insurance is the most relevant and appropriate type of coverage for international trade risks.