Goods in transit (GIT) insurance protects goods that are being transported or delivered from loss or damage. It will typically protect them from threats like theft and accidental damage, but only while they are in transit. It is not the same as standard truck or van insurance, or courier hire and reward insurance. This insurance can protect delivery drivers, their vehicles and third parties, while GIT insurance only protects the goods themselves.
This insurance can benefit anyone transporting high-value goods that would become a financial burden if they needed to be replaced or repaired. It can not only protect your business, but it can give you credibility and offer added value for those using your services.
Any business offering haulage, moving or delivery services could benefit from GIT insurance. It will protect your customer’s goods while being delivered. And can help you with the cost of replacing them if they are lost or damaged in transit.
This could include tradespeople, retailers or any businesses that regularly move or transport stock or materials from one location to another. Transporting goods isn’t without risks just because they are your own. Protection against damage, theft and loss of your own goods is equally important.
Good in transit insurance can be added as an extra level of coverage on courier insurance policies. Some delivery companies can even require this cover depending on the type of work you do for them.
If you are a self-employed courier or rent your van as a delivery or removal vehicle, you could benefit from goods in transit cover. It can also add an extra vote of confidence and peace of mind to customers.
If you are moving house or transporting your own valuables, you might want to consider temporary goods in transit insurance. Particularly if you are moving high-value items like artworks, antiques and electronics.
Unlike courier insurance, insurance for goods in transit isn’t a legal requirement for those transporting goods for reward in the UK. However, some companies or customers might insist you have it as part of your contract before they work with you. Some courier services can also request proof of GIT insurance before you can take on work with them.
There are a few key differences between courier hire and reward insurance and good in transit insurance. First is that courier insurance is required by law if you are delivering goods or transporting people for reward in the UK. Good in transit insurance is not.
Likewise, goods in transit insurance and courier insurance protect different things. Courier insurance focuses on protecting the driver and vehicle. Meanwhile, insurance for goods in transit protects the goods while they are being transported.
These commercial vehicle insurance options can get confusing, as courier insurance is known under several different names including hire and reward insurance, haulage insurance, and even taxi insurance.
However, goods in transit insurance is an additional level of coverage that is typically sold as an add-on to these commercial vehicle policies. Giving extra protection to those who want to protect the goods they are transporting.
This covers goods while they are under the custody and control of you or your delivery service. They are insured against:
Good in transit and public liability insurance are commonly bundled together under one insurance policy. Public liability insurance will offer additional protection from harm or damage you cause to others or their property during the course of your work.
This can include reversing into buildings or vehicles or injuring someone with a tail lift. With so much time spent on public roads and others’ property, this can be an important protection to have in the delivery business.
These will also vary across different insurers, so always check the limitations of each policy before you buy. However, common exclusions are:
Conditions of carriage are an agreed set of regulations that are usually outlined in a contract when you take on a job. These dictate what you are liable for when you transport the customer’s goods. And insuring these liabilities can help protect your business if things go wrong. There are a few common conditions of carriage that GIT insurance providers will be familiar with:
RHA or the Road Haulage Association offer a set of standard conditions of carriage that are widely used and recognised. They are reviewed in line with haulage industry needs and have been updated as recently as January 2024.
These conditions of carriage are set out by the UN. They apply to every contract where goods are carried for reward between two different countries by a road vehicle.
With standard conditions like the RHA being limited to members, you might choose to negotiate your own conditions with the customer. Having these clearly outlined will help to ensure all your liabilities are covered by your insurance.
This is also a safe option if you are not using a standard set of carriage conditions, or are unsure of your liabilities. This can help cover you for taking full responsibility for the goods.
Policies can come with coverage limitations. This might look like a maximum claim limit per load or individual item. The value of these limits will all be outlined in the policy documents and can be discussed before you buy.
The cover you need will be influenced by the goods you deliver. For example, if you are delivering blood and organs, you will need cover for cases where refrigeration fails.
If you only need cover for a one-off to short-term job, then temporary goods in transit insurance could be a cost-effective solution. The option of short-term and even pay as you go goods in transit insurance policies allows for more flexible protection.
If you deliver to the EU or internationally, double-check your protection still applies to goods being transported in these areas. Not just within the UK.
The cost of goods in transit insurance will vary depending on the risk of insuring you or your business. Due to the nature of the cover, this heavily relies on the goods you are transporting, but this is not the only consideration. Getting quotes from multiple insurance providers is a quick way to see how much goods in transit insurance will cost you.
Goods in transit insurance costs will be influenced by a number of factors including the type of goods you’re transporting, the distance of transit, and driver history. Some steps can be taken to help find cheap goods in transit insurance include:
Drivers over the age of 25 with no driving convictions and a good claims history can be cheaper to insure than young or convicted drivers.
Only choosing the cover you need could help reduce unnecessary expenses. This can come from knowing exactly what you are liable for when transporting goods.
If you overestimate the value of goods you carry, you can end up overpaying for your insurance coverage.
Some insurers will offer discounts to drivers with telematics insurance if their driving is good.
By upgrading the security of your vehicles, for example, by investing in immobilisers, dash cams, trackers and door locks, you could reduce the risk of theft.
A history of claiming for goods damaged during transit will indicate that you are a bigger risk and could come with a higher premium.
The excess is what you will pay towards each claim. Increasing this takes some of the risk back from the insurer, and could be rewarded with a cheaper deal.
Paying the premium in one go, rather than in monthly instalments, can mean you pay less overall.
Goods in transit insurance is highly specialised. So by shopping around you can see how each insurer views your risks, and who can give you the cheapest deal. Quotezone helps you compare goods in transit insurance policies by matching you to a range of experienced UK providers.
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