Goods in Transit Insurance

If your business involves being contracted to move goods between one place and another, delivering these items safely and without damage will be a high priority. However, accidents can and do happen—so whether you have a single courier van or a fleet of delivery vehicles, it is worth considering goods in transit cover.

What is goods in transit insurance?

As the name suggests, ‘goods in transit’ is the process whereby goods are moved in a vehicle from one location to another. This type of insurance (also known simply as GIT insurance) covers the contents being transported. These could be goods carried by company delivery vehicles, third-party carriers, or drivers using their own vehicles. While some courier insurances may include this cover, it is often sold as a standalone policy.

The cover is designed to protect goods that have been placed in your care, and are in transit. It does not typically insure items while they are being held at a warehouse or depot. Similarly, it does not cover any injury to a third party when loading or unloading the goods—for this kind of protection you would require public liability insurance.

What type of business needs goods in transit insurance cover?

Any business that is involved in moving goods between locations should consider goods in transit cover. These types of businesses tend to buy this type of policy:

• Transport businesses
• Haulage and cargo
• Courier and freight
• Furniture removal
• Car transportation in the motor trade

Do I need goods in transit insurance?

Although it is not a legal requirement, a goods in transit policy is worth considering if you are moving goods from one place to another, as it could cover you in the event of damage, theft or loss that may happen during this process.

Goods in transit cover does not have to be purchased at the same time as your commercial vehicle or courier van insurance. However, it is worth checking to see if your van insurance policy already has an element of this cover, as some insurance providers may include it. Some courier insurance policies, for example, may include goods in transit, alongside other key covers such as public liability and employers’ liability, within the same policy.

If goods in transit is included, you should check any limits on the policy, so you can be confident you have appropriate cover to suit your business. Your broker will be able to advise you on this.

If you are contracted with a major client, it may be a condition of your work that you have goods in transit cover. So, not only should you familiarise yourself with your insurance policy documentation, it is also good practice to ensure you are staying compliant with your business contracts.