What might cargo that is susceptible to damage during transportation face regarding insurance coverage?

Cargo that is susceptible to damage during transportation typically faces breakage exclusions or deductibles in insurance coverage. This is due to the higher risk associated with such items, which may be fragile or prone to damage from various risks during handling and transit.

Insurers often consider the nature of the cargo when determining coverage terms. For items that are more vulnerable to being damaged, policies may include specific exclusions related to breakage or may impose deductibles—meaning that the insured party must cover a certain amount of the loss before the insurance kicks in. This helps insurers manage their risk exposure associated with higher-value or more fragile goods.

In contrast, the other options do not accurately reflect the common practices regarding insurance for vulnerable cargo. Full coverage with no exclusions is rare for items that pose a higher risk of damage. Higher premiums might indeed be applicable, but they typically go hand-in-hand with the presence of exclusions rather than being the sole consideration. Automatic insurance approval is not a standard practice, as insurers need to assess risks before providing coverage. Thus, recognizing the specific challenges and terms associated with insuring cargo that is susceptible to damage is crucial for effective risk management in transportation.