An annual transit policy specifically covers insurance for incoming or outgoing shipments of goods. This type of policy is designed to provide coverage for the loss or damage of goods while they are in transit, whether they are being shipped to or from a location. This can include items moving via various modes of transportation such as trucks, ships, or planes. The comprehensive nature of an annual transit policy makes it suitable for businesses or individuals who frequently ship goods over the course of a year, providing peace of mind against potential risks during transportation.
In contrast, the other options do not align with the primary purpose of an annual transit policy. Liability for personal injuries during transport concerns a different aspect of insurance—liability insurance—rather than property in transit. Property insurance for residential buildings pertains to real estate rather than the movement of goods. Coverage for transportation of pets does not fall under the specifics of a transit policy aimed at commercial shipments, highlighting the specialized nature of transit insurance for goods rather than personal property like pets.