What is goods in transit insurance?
Goods in transit insurance covers the cargo (goods or products) you transport from one location to another as part of your courier work.
It is not a legal requirement, but it is highly recommended to cover the risks you face when transporting other people’s goods. Without it, you could be held personally liable for issues arising while delivering goods.
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Couriers and hauliers also need insurance for their vehicle and public liabilities. Alongside these, goods in transit insurance provides full cover for the risks you face while out on the road.
It could only take an emergency stop in a vehicle to send tens of thousands of pounds worth of products tumbling into each other and causing irreparable damage. Or the security of your vehicle might be compromised while goods are transported between destinations, with items stolen as a result.
What does Goods in Transit insurance cover?
Goods in transit insurance covers items transported for hire and reward, haulage, or your own goods.
Four main risks could affect your goods in transit:
- Damage or destruction
- Delayed delivery
Provided the items you are transporting are covered by your policy, your goods in transit insurance covers each of these eventualities.
Items that can be covered by a GIT policy include parcels, packages, newspapers, and letters. A goods in transit insurance policy can be tailored to cover the specific items you are transporting. Individual valuable items can be specified on policies, or cover can be purchased for all items in transit.
Who should buy a goods in transit policy?
Goods in transit cover is primarily designed for couriers and hauliers, who carry goods on behalf of other people. However, this type of insurance is important for any business that transports goods as part of its operations, including tradespeople.
Many companies employing courier services will insist on goods in transit cover, to provide protection should claims arise while their goods are in your possession. You may need to provide evidence of a policy before you start work for them.
How much does goods in transit insurance cost?
The cost of goods in transit insurance can vary depending on factors including the items transported and distances travelled with goods. However, goods in transit cover typically starts at around £200 per year (including insurance premium tax).
When you balance that against the cost of the items you are transporting and your potential losses, you can see that a goods in transit insurance policy offers valuable cover at a competitive price.
How much cover can I get on a goods in transit policy?
- Policies can cover a limit per load of up to £50,000
- Cover can be included against consequential losses (i.e. for items not delivered correctly) of up to £50,000
- Individual items can be insured for up to £1,000 in value
- Additionally, drivers can also have their personal effects insured for up to £200
It is vital to ensure that you select an appropriate level of cover (otherwise known as limit of indemnity) for the goods you will be transporting.
Are there additional covers available alongside goods in transit insurance?
Both employers’ liability insurance and public liability insurance are often included as part of your goods in transit policy. This provides even better value for money as part of your insurance.
Cover is provided for up to £10m for employers’ liability and £5m for public liability.
Employers’ liability insurance protects against claims from employees who suffer injury to their person or property while working for you. Public liability insurance provides cover against similar injury claims from members of the public while you are working.
Goods in transit insurance covers goods on the road. Courier van insurance protects your vehicle. This cover is a legal obligation. It is available on a third party, third party fire and theft or comprehensive basis.
A range of excess options is available. Ask us for a quote at the same time as you enquire about your goods in transit cover.
If you rely on tools carried in a van to conduct your business, any damage or theft of these items could leave you unable to carry out your work successfully, costing you money in lost work and replacing the items needed. Tools cover can provide additional protection against loss or theft of these items.
For example, if you are a plumber, plasterer, gas fitter, painter and decorator or builder – any tradesman who needs to transport tools to and from places of work – you may appreciate the peace of mind that our optional tools cover can offer.
Furniture in transit
Some policies can also extend to cover items such as furniture deliveries. Removal firms, in particular, can benefit from this cover. Please speak to us if you require cover for this type of item.
Can I get a goods in transit insurance policy for a fleet?
Yes, you can typically buy a policy that covers up to ten vehicles with a limit of £250,000 of cover.
All the benefits of a standard goods in transit policy apply, including liability insurance and cover for travel within Western Europe (under CMR conditions).
How can I get a quote?
Our specialist team are on-hand to run through the requirements for cover you have for goods in transit. Call us on 0800 440 2180 or request a callback. We will be pleased to offer a competitive quotation based on your business’s individual requirements, ensuring you get affordable cover that meets your needs.
Frequently Asked Questions
Do I need courier insurance and goods in transit insurance?Goods in transit cover protects the items you are carrying between the point they are picked up and the point they are delivered. Without it, you will be liable for damage, loss or theft of goods you are transporting. That is why many businesses and local authorities insist on goods in transit cover for couriers they use. Conditions of carriage will typically make you liable for some or all of the cost of damage, loss or theft of goods. Goods in transit insurance can be arranged with limits of indemnity to suit your needs.Courier insurance protects you and your vehicle, with limited cover (if any) for cargo.
Do I need public liability insurance?We recommend taking out public liability insurance, especially if you are a motor trader, taxi driver or courier. It protects you in the event of accidents and incidents involving the general public - and the claims for damages and legal costs that can follow.
What can I transport under goods in transit insurance?ChoiceQuote goods in transit insurance does not cover high-risk items, hazardous goods or furniture being transported as part of a house move. Get in touch for more information on specific items.
Can I combine courier insurance with goods in transit cover?Some insurance policies used to provide cover for your van and goods in transit under one policy. However, this option is no longer available - courier insurance and goods in transit insurance are bought separately. You can still save money by taking out cover through a broker that helps you get the right level of cover for both your van and the goods you are carrying – just call us if you need help.
Will the tools in my van be covered overnight?No - tools are not covered by a goods in transit policy. You would need to purchase separate cover for this. Please speak to us for details.
What can I transport under courier insurance?At ChoiceQuote, we understand that couriers carry a wide range of items. However, our courier insurance does not cover high-risk items or hazardous substances, and you will not be covered if using the vehicle to carry furniture for home movers. Our courier insurance covers vehicles carrying out a single pick up of items and delivering to multiple drop-off locations. Get in touch for more information, or to discuss your courier requirements.