Does cargo insurance cover loss or damage from external sources for adequately packaged cargo?

The correct response acknowledges that cargo insurance does provide coverage for various risks that can affect cargo, including contamination and infestation. Cargo insurance is designed to protect against a wide range of potential dangers that can occur during transit. This includes damages or losses arising from external sources, such as contamination from environmental hazards or pest infestation, as long as the cargo is adequately packaged.

Although cargo insurance can have specific exclusions, standard policies generally offer broader coverage that encompasses these risks. Therefore, if cargo is properly packaged, the insurance would typically cover incidents that result from factors outside the control of the shipper, including exposure to contaminants and infestations that may occur during transportation.

The other choices present more limited interpretations of cargo insurance coverage. Certain exclusions or limitations regarding external contamination, theft, or spoilage might apply, but they do not reflect the typical coverage offered by standard cargo insurance policies, thus making them less accurate in this context.