What is Goods In Transit insurance?
Goods in Transit insurance, often referred to as GIT insurance, provides cover for goods or materials while they are being transported from one place to another in the course of your business. This might include items being carried in your own vehicle or by a third-party carrier on your behalf. Although many commercial vehicle policies include a small amount of cover for the contents of the vehicle, this is often limited. In most cases, a separate Goods in Transit policy is required to ensure full protection for the value of the goods being transported.
While this type of insurance is not a legal requirement, it is considered essential for businesses that deliver goods, offer courier services, or move equipment and stock between sites. Many commercial contracts even stipulate that a business must have a minimum level of Goods in Transit insurance in place before they will agree to work with them. Without suitable cover, a business could be left facing significant financial losses if their goods are lost, stolen, or damaged while on the move.
What Does Goods in Transit Insurance Cover?
The loss, theft, or damage to items while they are in transit will be covered by a standard goods-in-transit coverage.
For Example:
- Goods lost during loading/unloading or during the vehicle being used.
- Theft of goods being carried from one address to another.
- Damage to goods whilst in transit, e.g., caused by accident, collision, or the goods falling out of the vehicle.
- Some policies extend to cover goods left in a securely locked vehicle overnight, subject to conditions such as secure parking and/or alarm systems.
However, it is crucial to review the policy's precise terms, including what is and is not covered and any applicable limitations (such as value limits, route restrictions, or security requirements). The amounts of coverage offered by various insurers will vary.
Why Do You Need Goods in Transit Insurance?
If your business is responsible for transporting goods, you could be held liable if those goods are damaged, stolen, or lost in transit. Without the correct level of insurance, you may face costly claims or be unable to fulfil customer contracts. Even if your vehicle insurance includes some cover for contents, this is usually capped at a relatively low value. A dedicated Goods in Transit policy ensures that your goods are fully protected to match your business requirements.
Many organisations, such as haulage companies, couriers, and removal firms, are required by their clients or business partners to hold a specific level of Goods in Transit insurance. It’s not just about protecting your goods; it’s also about safeguarding your business reputation and ensuring compliance with the terms of your commercial agreements.
How We Can Help at JPM Broking Services
At JPM Broking Services we work closely with our clients to understand:
- The type of goods you are transporting (general haulage, Hazardous substances, high-value items, temperature-controlled goods etc)
- The volume, frequency and value of your shipments
- Whether you are using your own vehicles, a third-party carrier, or both
- The contractual requirements you must meet (for example under the Road Haulage Association’s “Conditions of Carriage”)
- Where the goods are being carried (domestic UK, cross-border within Europe, international)
With that insight, we can guide you to the most appropriate levels of cover and help tailor a policy that works for your business rather than a “one size fits all” solution.
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