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Goods In Transit Insurance

What is goods in transit insurance?

Alicia Hempsted
Written by  Alicia Hempsted
10 min read
Updated: 10 Apr 2024

Goods in transit insurance will protect items being transported by your business if anything happens to them during the journey. Discover the basics of this valuable business protection in this guide.

What is goods in transit insurance?

Goods in transit insurance is a type of business insurance that will protect goods and property while they’re being transported. It covers loss, damage, or theft of these items while they are in the vehicle.

Some business insurance policies may have goods in transit cover included as standard while others will require you to manually add the cover to your policy at the cost of higher premiums.

What does goods in transit insurance cover?

The basics of goods in transit insurance includes the following cover for items being transported:

  • 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, whether they’re damaged beyond repair or unable to be reclaimed

What kind of business would benefit from goods in transit insurance?

Goods in transit insurance is typically designed to cover businesses that provider regular haulage and courier services, but its benefits are not limited to these types of businesses.

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

What is not covered by goods in transit insurance?

There are some common exclusions that you can find with goods in transit insurance that you need to be aware of. Not every provider or policy will have the same exclusions, so you will need to check your policy wording to confirm your cover.

To give you an idea of what your policy may not cover, here are some common exclusions you may find in your policy:

  • Injury or loss of livestock or living creatures

  • Loss or damage to nuclear waste

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

  • Events related to 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

Look out for this important detail in your policy documents

Some business insurance policies will only cover own goods in transit, meaning that they will only protect your business’s property in transit and not property belonging to your customers. This is something to keep an eye out for you in policy documents as it can be easy to mistake ‘goods in transit’ cover with ‘own goods in transit’ cover.

Do I need goods in transit insurance?

If you transport valuable goods regularly for your business, this may be an important protection to consider. Other types of business insurance may fall short in terms of this type of protection.

Many liability insurance policies have an exclusion for 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 in an accident during transportation – for example, an accidental fire in the vehicle destroys their property – your liability insurance may not pay out to help you cover related costs if you are held liable. This is where goods in transit insurance comes in handy.

Goods in transit insurance is also a valuable cover to protect 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.

For these reasons, if you choose not to add goods in transit cover to your business insurance, you may be missing out on valuable insurance protection.

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

Yes, goods in transit insurance will cover goods being transported as soon as you’re at the point of loading the items into the vehicle. They 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 exports outside of the UK?

While goods in transit insurance can cover exports and imports outside of the UK, it depends on your policy and provider. Policies will have geographical limits which apply to where in the world you will be covered.

These limits can vary depending on your provider and chosen policy. However, 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 as this may offer more comprehensive cover.

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

You will need to look out for these terms in your policy documents to find out what your policy will cover.

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If you need public liability insurance, employers' liability insurance, or professional indemnity insurance for your business, we can help you find a great deal on your policy.

When you shop for business insurance with us, you can bundle a number of business protection products into one policy, which can include goods in transit insurance. This can make it so much easier to manage your insurance products and find a great deal on your cover.

It takes minutes to start shopping and with the help of our partner Simply Business, you can compare quotes from a number of UK providers to help you find a policy for a great price that meets the unique needs of your business.

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