goods in transit insurance Compare quotes to find the best insurance policy for you
In the UK, goods in transit insurance, also known as GIT insurance, provides financial protection for businesses that transport goods. It covers your property if it’s lost, stolen, damaged, or not delivered while being moved. This insurance can be crucial for businesses that regularly move valuable goods, offering peace of mind against potential financial losses.
Here’s a more detailed look at what it covers and why it’s important:
What it covers:
Loss, damage, or theft of goods in transit:
This includes damage during accidents or mishandling, as well as theft of the goods.
Delayed delivery:
If the goods are delayed due to unforeseen circumstances, some policies may cover consequential losses.
Consequential losses:
In some cases, policies may cover losses that result from the delayed or damaged delivery of goods.
Why it’s important:
Financial protection:
It helps businesses recover from unexpected financial losses resulting from the loss, damage, or theft of goods in transit.
Peace of mind:
Knowing that goods are protected while being transported can reduce stress and worry for businesses.
Protection for various businesses:
It can be beneficial for couriers, delivery services, companies moving stock between sites, and warehouses collecting goods for storage.
Important considerations:
Vehicle insurance is separate:
Goods in transit insurance doesn’t replace vehicle insurance, which covers the vehicle itself.
Policies vary:
It’s important to compare different policies and understand what is and isn’t covered to ensure you have adequate protection.
Exclusions:
Policies typically have exclusions, such as theft from an unattended vehicle (unless locked and keys removed) or inadequate packing
Goods in transit insurance cover in the UK: a comprehensive guide
Goods in transit (GIT) insurance in the UK offers crucial protection for businesses involved in the transportation of goods, whether those goods are owned by the business or belong to clients. This type of business insurance safeguards against financial losses arising from theft, loss, or damage to items while they are being moved from one location to another within the UK. While it is not a legal requirement, it is widely recommended for businesses with significant transport operations, such as haulage, courier services, furniture removal companies, and businesses regularly delivering customer orders. Many clients may even mandate this cover as a contractual requirement before engaging with transportation businesses.
What does goods in transit insurance cover?
GIT insurance offers coverage for a variety of risks during the transportation process, including:
Damage or destruction: This includes damage that occurs during loading and unloading, transit due to accidents, rough handling, sudden braking, or inadequate securing of goods.
Loss: This covers instances where items go missing during transit due to misplacement, delivery to the incorrect location, or theft.
Theft: Protection against stolen goods from the vehicle while in transit, provided the vehicle is secured and locked as per policy terms.
Consequential losses: Some policies may also cover certain consequential losses related to delayed or improper delivery.
In addition to the core coverage, some policies offer optional extras or include specific items in their standard coverage, such as:
Driver’s personal effects (excluding money) up to a certain value.
Containers that are not owned but are the responsibility of the insured.
Costs for debris removal after an accident.
Deterioration of refrigerated goods due to equipment malfunction.
What is typically not covered?
It is equally important to understand the exclusions commonly found in GIT policies. These can vary between insurers, but generally include:
Theft from unattended vehicles overnight unless the vehicles are garaged in secure premises, and all doors/windows are securely locked with keys removed.
Electrical or mechanical breakdown of the goods themselves.
Clerical errors, omissions, or delivery to the wrong consignee.
Damage resulting from inadequate packing, exposure to weather conditions, contamination, or wear and tear.
High-value goods, perishable items, collectibles, hazardous goods (such as explosives), and certain types of products like livestock, may be excluded or subject to specific limitations.
Coverage for goods traveling outside of the UK and Ireland may not be included as standard.
The policy typically does not cover the vehicle itself, which requires separate commercial vehicle or van insurance.
Key considerations for goods in transit insurance
Types of policies
GIT insurance can be obtained as a standalone policy or as an add-on to a broader business insurance policy. Businesses with differing needs may opt for specific types of policies:
Own goods: This covers the business’s own tools, equipment, or stock being transported.
Courier/haulage: Tailored for businesses that are paid to move goods that do not belong to them, such as courier services and haulage contractors.
Factors influencing cost
The cost of GIT insurance is determined by several factors, including:
Value of the goods: The higher the value of the items being transported, the higher the premium.
Type of goods: High-risk or specialized goods may incur higher premiums.
Routes and distances: Longer distances and routes with higher crime rates can lead to increased costs.
Level of cover: Comprehensive coverage typically costs more than basic coverage.
Claims history: A history of previous claims may result in higher premiums.
Security measures: Implementing strong security measures, such as secure vehicle garaging, alarm systems, and tracking devices, can potentially lower premiums.
Making a claim
In the event of loss, damage, or theft during transit, businesses need to follow the proper claims process:
Notify the insurer: Inform the insurer about the incident as soon as possible, ideally within the time limits specified in the policy conditions.
Submit a formal claim: Complete and submit the necessary claim forms provided by the insurer.
Provide supporting documentation: Gather and submit all relevant documentation, including proof of shipment, invoices, evidence of value, photographs of damage, and correspondence related to the incident.
Adhere to time limits: Be aware of and comply with the time limits for notifying the insurer and submitting a claim, as failure to do so could jeopardize coverage.
Hold third parties responsible: If a sub-contractor or third-party carrier is involved, hold them responsible in writing for any loss, theft, or damage as soon as possible, in accordance with the conditions of carriage.
Why goods in transit insurance is essential
Despite not being a legal requirement in the UK, GIT insurance is considered an indispensable part of risk management for businesses involved in transportation. It provides peace of mind and financial security by covering potential losses that can arise during the transportation of goods. Without it, businesses could face significant financial setbacks due to:
The cost of replacing damaged or stolen goods.
Loss of revenue from lost or undelivered goods.
Damage to reputation and client relationships.
Considering the high volume of goods transported across the UK daily, goods in transit insurance offers vital protection, enabling businesses to navigate the inherent risks associated with transportation with greater confidence and resilience.
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