Transit Insurance Cover – Do I Need it?
Goods in transit insurance covers items from theft, loss or damage as they’re being transported by vehicle from one place to another. You may need this if you are shipping possessions to another country during a relocation, or if you’re a courier or transport company carrying cargo for various clients.
Many policies will be designed to protect the carrier who is actually responsible for transporting the goods, while some policies also offer certain protections for shippers. It’s always best to double-check that your items are completely protected throughout the whole journey.
This type of insurance is different to courier insurance, so don’t make the mistake of thinking cargo is insured simply because you or your shipping company has commercial courier insurance, which typically just covers the vehicle itself, but not the contents that are being carried.
Who Needs Goods In Transit Insurance?
Some van or courier insurance policies include an element of goods in transit cover, but only up to a certain value. If for any reason you are responsible for transporting goods, having GIT cover that covers the entire value of your cargo is important.
Without it, you may end up paying out of your own pocket if items are lost, damaged or stolen before they reach their intended destination.
As such, separate goods in transit insurance policy is typically required by any business that runs more than a single van. Cover for entire fleets can also be taken out if you are handling a number of vehicles that regularly transport goods.
Do I Need Transit Insurance Cover?
Goods in transit cover isn’t actually required by law, but without it, your business could be incredibly vulnerable in the event of theft, loss or damage of your carried goods. This applies if you are a courier service, removals service, or if you handle the delivery of purchased goods for whatever reason.
You may even need transit insurance cover if you are a motor trade or vehicle recovery business as you may be responsible for transporting goods temporarily from A to B.
Furthermore, GIT cover is needed if your clients or customers require it. Many shippers will look for this policy specifically when choosing the carriers they choose to work with, and if you don’t have effective cover, they may look elsewhere to guarantee their goods are always protected.
What does Goods in Transit Insurance Cover Include?
Goods in transit cover lets you make a claim if cargo is lost, stolen or damaged in transit. It may help you recover the cost so that you or your customer do not need to. There are a number of things that can go wrong when items are transported, especially when this takes place over long distances and across country borders.
Goods in transit insurance may also include items left in the vehicle overnight.
What Does Goods in Transit Cover not Include?
- Loss, damage or expenses caused by delay
- Fraudulent conduct by the insured party
- Insufficient or improper packaging by the transport company
There’s a lot to consider when engaged in the shipping of goods from location to location. Whether you are a shipping company handling cargo for your customers, or if you are a business who regularly ships goods across borders, it’s important that each stage of your business is covered with the right kind of insurance.
At the Insurance Broker, we can help you figure out exactly what kind of insurance policy you need and help you compare the best products in the market so you can keep your business running, without breaking the bank.