What is Goods in Transit Insurance?
Goods in Transit insurance covers items from theft, loss or damage while they are being transported by vehicle from one place to another in the course of business. Examples include furniture removal and couriers or hauliers working for online retailers.
Goods in Transit cover can be purchased separately from commercial vehicle or courier insurance. Those policies cover the vehicle itself, whereas GIT insurance purely covers the contents – the goods carried. Some van or courier insurance policies do include an element of goods in transit cover, but only up to a certain value. As the name suggests, GIT insurance only covers goods while they are in transit, not while they are in the vehicle at the depot.
Is goods in transit insurance a legal requirement?
GIT insurance is not required by law, but in reality any business offering courier services, removal services or delivering purchased goods would be recommended to consider it. It is advisable for motor trade or vehicle recovery businesses as well. GIT insurance may also be necessary when transporting business equipment between multiple business premises – perhaps while moving premises.
What does Goods in Transit Insurance cover?
If materials, goods or cargo are lost, stolen or damaged in transit, claiming on Goods in Transit cover may make it possible to recover the cost. Transport, courier and haulage businesses are also subject to delays, usually when items are mislabelled, delivered to the wrong address or signed for by the wrong person. If a delivery cannot be made at the time specified, GIT insurance may enable them to claim for the cost to the business – when the recipient tries to recover any costs incurred for example. Goods in Transit insurance may also include items left in the vehicle overnight, as long as the vehicle is locked and parked in a secure place. Always check the policy for details.
Different policies offer different levels of cover, so it is important to tell the insurer or broker about type and frequency of the cargo being carried, and to be realistic about its value.
Goods in Transit insurance claims procedure
Contact the broker or insurer as soon as possible to claim on a Goods in Transit policy. Documentation likely to be required includes:
- Completed claim form
- Police report (if applicable)
- Supplier’s invoice or other proof that the goods were purchased
- Packing list, delivery order or other proof that the goods were in the vehicle at the time of the incident
- Repair or replacement bill, as evidence of the value of the goods
Tell us everything
It’s recommended that you tell the Gallagher team about any of your contracted conditions of carriage. Only then can we ensure that you have the appropriate level of Goods in Transit insurance cover. This can range from coverage for the entire value of the goods you are transporting to an allotted amount per tonne of items.
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Got a question?
Please note that these Frequently Asked Questions are not a substitute for the policy wording
Why do I need goods in transit insurance?
Because many major customers insist on it, and because the cost of replacing lost or damaged goods could easily be harmful to your business.
Is combined courier van insurance and goods in transit insurance enough?
It can be, but here are three reasons why it may not provide sufficient cover:
- You run more than a single van
- Your typical payload per vehicle would cost more than £25,000 to replace in the event of loss or damage
- Your conditions of carriage demand a higher level of cover than your courier van insurance can provide (the Road Haulage Association requires standard cover of £1,300 per tonne of goods)