Goods In Transit Insurance

Key takeaways

• Goods in transit insurance protects items during transportation and covers theft, damage, and loss

• It is included in some business policies and can also be added separately

• Common exclusions include livestock, nuclear waste, valuables, and improperly secured items

What is goods in transit insurance?

Goods in transit policy is a type of business insurance that will protect goods and property while they’re being transported.

Some business insurance policies may have goods in transit cover included as standard. Others will require you to manually add the cover to your policy for an extra fee.

What does goods in transit insurance cover?

Goods in transit insurance includes:

• Theft: If the item is stolen directly from the vehicle

• Damage: If an accident results in the transported items being damaged

• Loss: If an incident results in items being lost altogether, including if they’re damaged beyond repair

What is not covered by goods in transit insurance?

Some common exclusions for goods in transits policies are:

• Injury or loss to livestock or living creatures

• Loss or damage to nuclear waste

• Loss or damage to valuables (money, jewellery, precious stones etc.)

• Damage or loss caused by war, civil war, invasion, or revolution

• Damage or loss directly or indirectly caused by delay

• Damage caused by natural deterioration

• Theft from unlocked/ unattended vehicles

• Damage or loss as a result of items being improperly stored, loaded, or secured

🚩 Some policies will only cover own goods in transit, meaning that they will only protect your business’s property but not property belonging to your customers.

Not every provider or policy will have the same exclusions, so you will need to check your policy to see what is and isn't covered.

Does goods in transit insurance cover goods being loaded or unloaded?

Yes. Goods in transit insurance will cover items being transported as soon as you’re at the point of loading them into the vehicle. Good will also be covered while being offloaded from the vehicle, but the cover will only last until the item is on the floor.

As soon as the item has been technically ‘unloaded’, your goods in transit cover will end. This means that your goods won’t be covered while being transported to and from the place of loading.

Does goods in transit insurance cover items left in the vehicle overnight?

Yes, goods in transit insurance will usually cover goods left in a vehicle overnight.

However, there will usually be conditions to this. All policies require the vehicle to be securely locked or stored if left unattended. Some may require the vehicle to be attended at all times.

Does goods in transit insurance cover exports outside of the UK?

It depends on your policy and provider. Goods in transit insurance can cover exports and imports outside of the UK, but different policies will have different geographical limits to where in the world you will be covered. Most policies that cover international transport will only cover transport of items within the UK and Europe.

If you are transporting goods outside of the UK, there may also be special terms or cover limits to look out for in a goods in transit insurance policy that may apply your overseas cover. For example, your cover may be limited while the goods are awaiting shipment or if they need to be temporarily stored.

If you want to protect items that are being shipped internationally, it may be worthwhile to look into more specialised marine shipping insurance or cargo insurance for more comprehensive cover.

Is goods in transit insurance required by law?

No, it’s not a legal requirement to have goods in transit insurance if you deliver things.

But without it, you could be held legally liable to pay out for any loss, theft of, or damage to the items you’re transporting. That could leave you seriously out of pocket.

Many companies will only work with couriers, delivery drivers, and carriers who have goods in transit cover in place. You may need to provide proof that you have this cover before you start working for them.

Do I need goods in transit insurance?

If your business transports items – whether you’re delivering products to customers or transporting equipment between business locations – then goods in transit insurance is a great protection to consider.

Other types of business insurance do not always cover accidental damage and often exclude damaged or lost property that does not belong to you while it’s in your care. This means that if your customer’s property is damaged during transportation your business insurance may not pay out to help you cover costs if you are held liable.

Goods in transit insurance also protects your own goods while they’re being transported. If you are moving your business to a new location, damage to your equipment while it’s being transported could bring operations to a halt and result in a loss of income.

How can I find cheap goods in transit insurance?

Comparing quotes from different providers is one of the best ways to save money on your business insurance. MoneySuperMarket can do the hard work for you; showing you quotes from multiple different insurers in minutes.

You can bundle a number of business protection products into one policy, including goods in transit insurance. This can make it so much easier to manage your insurance products and find a great deal on your cover.