If your business transports goods from one location to another, Goods in Transit (GIT) insurance can provide valuable financial protection.
Whether you’re a courier, delivery driver, removal company or haulage operator, transporting goods always carries some level of risk. Goods in Transit insurance is designed to protect against those risks while the items are being moved.
Here’s everything you need to know.
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What is Goods in Transit insurance?
Goods in Transit (GIT) insurance covers goods while they’re being transported from one place to another.
The policy is designed to protect against financial loss if the goods are:
- Lost.
- Stolen.
- Damaged while in transit.
This could include transporting goods:
- Between business premises.
- From a supplier to a customer.
- During deliveries.
- While collecting stock.
The goods may be carried in your own vehicle or by employees, subcontractors or courier drivers, depending on the terms of the policy.
If goods are being transported internationally by sea, separate marine cargo insurance may also be required.
Who needs Goods in Transit insurance?
Not every driver needs Goods in Transit insurance.
However, it’s commonly used by businesses such as:
- Couriers.
- Delivery companies.
- Removal firms.
- Haulage operators.
- Tradespeople carrying customer equipment.
- Self-employed drivers transporting goods on behalf of clients.
If you’re responsible for transporting goods that belong to someone else, GIT insurance can provide important financial protection if something goes wrong.
Many businesses also require subcontractors to have Goods in Transit insurance before offering them work.
What does Goods in Transit insurance cover?
The exact level of cover varies between insurers, but most policies protect against:
- Theft of goods.
- Loss of goods during transit.
- Accidental damage while transporting items.
- Damage during loading or unloading.
Depending on the insurer, cover may also include damage caused by events such as vehicle collisions, fire or certain weather-related incidents.
As with any insurance policy, it’s important to read the policy wording carefully to understand exactly what’s included and any exclusions that apply.
Does Goods in Transit insurance cover your vehicle?
No.
Goods in Transit insurance protects the goods, not the vehicle transporting them.
Damage to your van, lorry or car would normally be covered under your commercial vehicle insurance policy rather than your GIT policy.
Some commercial vehicle insurance packages include a limited amount of Goods in Transit cover, while others require you to purchase it as an optional add-on or standalone policy.
Always check your policy documents to understand exactly what protection you have.
How do you choose the right Goods in Transit policy?
The level of cover you need will depend on several factors, including:
- The value of the goods you carry.
- The type of goods being transported.
- How often you make deliveries.
- Whether you’re transporting your own goods or someone else’s.
Comparing policies from different insurers can help you find cover that matches your business needs without paying for unnecessary extras.
If you regularly use a van for work, it’s also worth understanding what type of van insurance do you need to drive a van, as the protection for your vehicle and the goods inside it are often provided under separate policies.
Businesses transporting may also benefit from understanding why insurance and fuel prices are the biggest concern for motorists, as the two offer both enquire a cost.
Looking after your business
Goods in Transit insurance helps reduce the financial impact if valuable goods are damaged, lost or stolen while under your care.
Choosing the right level of cover can provide reassurance for both you and your customers, particularly if transporting high-value items forms part of your business.
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