Can You Explain The Importance Of Insurance In Commerce?

This is particularly important when the value of a product being exchanged between two parties represents a significant amount of labor, material, and intellectual property used in creating the product.   Insurance for loss, theft, or damage would provide "financial" protection to both parties to the transaction at a point in time during the transaction.   The premise is insurable risk.   When you own something (you take possession of product) you have an insurable risk.
When you sell something (and you still possess title to the product) you have the insurable risk.   So when title passes from seller to buyer the insurable risk also passes.