Goods in transit insurance

What is goods in transit insurance?

Goods in transit (GIT) insurance protects the goods in your van against loss, damage or theft while being transported. For example, between a factory and a retail outlet or private property. 

GIT insurance only covers the contents in your vehicle, and only during transit. They won’t be covered before you depart or once they’ve been delivered.     It’s an optional insurance, and it doesn’t cover your vehicle. For that, you need van insurance, which is required by law. 

How can I get goods in transit insurance?

Business van insurance may include some level of GIT cover. If not, you may be able to add it on for an extra cost. Or you get it as part of a business insurance package.   

Alternatively, you could buy standalone goods in transit insurance from a specialist provider.  

Who needs goods in transit insurance?

Any business that regularly moves goods between locations could benefit from goods in transit insurance.

GIT cover is particularly important for:

• Courier services

• Removal services

• Haulage companies

• Car transportation in the motor industry

• Businesses that deliver directly to their customers

• Businesses that move supplies from one site to another.

If you offer delivery of purchased goods – if you run an online shop, for example – GIT cover could protect items while they’re on their way to the customer. It could also cover you for any costs if the item is undelivered.

What if your goods are being transported by a carrier?

If it’s your goods that are being transported, remember that the carrier’s insurance is designed to protect their business, not yours.

For example, if you’re using a removals company to move business premises, a standard policy might not cover every situation.

You may want to include specific terms about how you want your goods to be covered by insurance in your contract with the carrier.

What does goods in transit insurance cover?

Typically, goods in transit insurance could protect the goods in your van against:

• Theft

• Loss

• Damage caused by accidents during transit

• Damage caused during loading, unloading or transit.

Damage may include things such as weather and pest infestation, goods being dropped during unloading or items falling off the vehicle while it’s travelling.     Always check your policy to see exactly what’s covered. 

What doesn’t goods in transit insurance cover?

GIT insurance generally won’t cover:

• Loss as a result of poor, defective or insufficient packaging

• Shortage in weight

• Loss because of deterioration or variation in temperature, for example, caused by a breakdown of a refrigeration unit – unless agreed with the insurance provider and included in the policy

• Dangerous goods, money, livestock and high theft-risk goods – unless agreed with the insurance provider and included in the policy

• Theft from unattended vehicles, unless agreed security is in place

• Confiscation or requisition by a government or public authority.

What should I look out for when buying goods in transit insurance?

When choosing your policy, there are a few details to check:

The terms around loading and unloading

You need to fully understand where your liabilities start and finish.

For example, you may be covered if damage happens while a forklift truck driver is placing a loaded pallet on your truck.

But you might not be covered for the 10 seconds earlier when that forklift was loading up on the other side of the yard.

The terms around refrigerated items, livestock or high-value items

If you’re carrying goods that are temperature or humidity-controlled, you’ll need to make sure you’re covered correctly if the control unit fails.

Maximum cost-by-weight liability

Some policies have a maximum cost-by-weight for the goods being transported.

These policies are particularly useful if you operate under standard Road Haulage Association (RHA) conditions with a set liability per tonne. These should offer the level of cover you need, regardless of the actual value of the goods you’re carrying.

But for some items you might need to buy extra cover, so always check policy details.

Additional cover

Check to see if the policy offers cover for the following and, if not, whether you can add it for an extra cost:

• Your trailer

• Your own items used to protect the goods, such as straps, ropes, tarpaulin sheets and fastenings

• Customers’ property

• The driver’s personal property

• Storage cover

• Hazardous items

• Transporting goods abroad

• Public liability

• Employers' liability.

Is goods in transit insurance required by law?

No, you’re not legally required to have GIT insurance. But customers might insist on it before allowing you to carry goods for them. And, without it, you could find yourself seriously out of pocket because:  

• You could be liable for costs if anything is lost, damaged or stolen – your client’s property, equipment or goods are your responsibility while they’re in your possession.

• You could face claims for consequential loss – for example, if a manufacturer has to shut down a production line due to something not being delivered. 

What level of cover do I need?

The level of goods in transit cover you’ll need depends on several factors, including:  

• What you’re carrying – and whether goods are being carried under specific requirements or international rules.

• Your contractual liabilities – the recipient of the goods should be clear about exactly what you’d be liable for in the event of a loss. Someone delivering important documents or diamonds might need a completely different level of cover from a haulier shifting gravel, for example.

• Where you’re transporting the goods – whether you’re transporting goods entirely in the UK or if international collection or delivery is required, for example.   Common contractual conditions include:

• RHA Conditions of Carriage (2024) – you’ll need to be a Road Haulage Association (RHA) member and use the RHA Conditions of Carriage correctly. This limits your liability for the goods to a maximum of £1,300 per tonne on the gross weight of goods lost, wrongly delivered, or damaged. The RHA conditions set out who’s responsible for what in terms of collection, transportation and delivery. 

• CMR conditions – if goods are being transported internationally by road, you’ll need to make sure your GIT insurance aligns with the UN’s CMR convention. This is a standard set of transport and liability conditions, which replaces individual businesses’ terms and conditions. 

• Full value – if you’re not using specific contract conditions such as the RHA’s, you may need cover for full responsibility for the goods. 

What if you're a self-employed owner-driver?

If you’re a self-employed owner-driver delivering on behalf of another network, it’s best to check the level of GIT insurance you need to have before buying a policy.

Typically, goods in transit policies are non-refundable and fees may apply to make changes after the policy starts. So, it’s important to provide full information and carefully compare policies upfront.

How can I get cheaper goods in transit insurance?

Remember, the cheapest quote won’t necessarily provide you with the cover you need. However, there may be ways to cut your insurance costs, including: 

• Improving your vehicle’s security – to reduce the risk of theft

• Accurately assessing the value of goods you’re moving – overestimating could see you paying above the odds for your premiums, while underestimating could mean you don’t have enough cover

• Changing to a black box policy – some insurance providers offer discounts if you can prove you’re a safe driver.

What’s the difference between goods in transit insurance and courier insurance?

The main difference is that GIT insurance covers the items you’re transporting. Courier insurance, or ‘hire and reward’ insurance, on the other hand, typically covers: 

• Damage to your vehicle 

• Cover if your courier is injured while performing their job 

• Third-party damage to other vehicles, people or property.

Some courier insurance policies will also insure the contents of the vehicle up to a limited amount. But it can be hard for couriers to accurately estimate the value of the goods they’re delivering.

Do I need public liability insurance as well as goods in transit insurance?

Whether you need public liability insurance depends on the nature of your business.

Let’s say you run a removal company, and you injure someone or damage their property while you’re loading and unloading furniture. Public liability insurance could cover both the third-party injury and property damage. 

Some goods in transit policies include public liability cover as standard. So, it’s worth double-checking whether you need additional cover. 

Your commercial vehicle insurance should cover you for damage or injury to people and property while in your vehicle, if you think you need it.

Compare van insurance

You can do a comparison quote for van insurance for haulage (using your vehicle for the carriage of goods for hire or reward) through Compare the Market. However, this will just protect you and the van, not the contents.

If you want goods in transit insurance, you may be able to get it as an add-on to your policy. Or you could buy a standalone goods in transit policy directly from a specialist insurance provider.