Goods in transit insurance covers stock, materials or products against loss or damage while they are being moved, whether in your own vehicles or by a carrier. A motor policy covers the vehicle, not what it is carrying, so any business that transports goods, its own or its customers’, has an exposure that goods in transit cover fills. It is essential for hauliers, couriers, tradespeople and anyone delivering or collecting stock.
The moment goods leave a fixed premises they fall outside buildings and contents cover, and a road accident, theft from a van or damage in handling can be a serious loss. Goods in transit insurance is the cover for that in-between stage.
What does goods in transit insurance cover?
It covers goods against loss or damage while in transit, typically from causes such as accident, fire, theft and, depending on the wording, loading and unloading. Cover can be arranged for your own goods, for customers’ goods you are carrying, and for tools and equipment in a vehicle. Policies set a limit per vehicle or per load, so that limit needs to reflect the value you actually carry.
Doesn’t my van insurance cover the load?
No. A commercial motor policy covers the vehicle and your liability on the road, but not the goods inside it. If the van is stolen or crashes and the stock is lost or damaged, the motor policy does not pay for the goods; goods in transit cover does. This is one of the most common gaps for tradespeople and small delivery businesses.
Who needs goods in transit insurance?
Hauliers and couriers carrying customers’ goods, tradespeople carrying tools and materials, retailers and wholesalers moving stock, and any business that delivers or collects. If you would suffer a real loss should a load be stolen or destroyed in transit, you have the exposure.
What about carrying other people’s goods?
If you carry goods for customers, you can be liable for their loss or damage, and the basis of that liability, and any trade conditions of carriage, affects what cover you need. Carriers often need cover matched to the terms on which they accept goods, which is a point worth taking advice on rather than assuming a basic policy is enough.
Getting the cover right
The right goods in transit limit and basis depend on what you carry, for whom, and on what terms. A broker can match the cover to your loads and your liability. To review your commercial cover, get a quote or speak to the team.