Definition - What does Freight Insurance mean?
Freight insurance is a policy that protects the policyholder from the loss of goods during shipment.
It is also known as cargo insurance.
Insuranceopedia explains Freight Insurance
Freight insurance protects the owner or consignor of goods for possible physical loss or damage from outside causes during shipping. The insurer would reimburse the policyholder for the value of the goods if they incur damage or perish while in the hands of the shipper. It is often available from the shipping company itself, or it may be purchased from a third party insurer as well.