Why is transportation insurance so important?

Why is transportation insurance so important?

In overseas trade the geographical gaps are great, and the transport is multi-modal,that is to say,we must combine road,rail,sea and air in almost all cargo movements to some extent. Similarly the time lag is great between production and consumption. In bridging these two gaps,serious risks have to be run. And it is in this framework that the insurance underwriters operate to carry the risks which otherwise would have to be undertaken by the producers.