Goods in Transit Insurance: What Fleet Operators Need to Know

What is Goods in Transit Insurance?

Goods in transit (GIT) insurance covers loss or damage to goods while they're being transported. This is separate from your motor insurance, which only covers the vehicle itself—not the cargo you're carrying.

If you transport goods for customers or carry valuable stock between locations, GIT insurance protects you against the financial loss if those goods are damaged, stolen, or destroyed during transit.

Who Needs Goods in Transit Cover?

GIT insurance is essential for any business that transports goods, including:

• Haulage and logistics companies: Carrying goods for third parties
• Couriers and delivery services: Parcels and packages
• Tradespeople: Tools and materials to job sites
• Retailers: Delivering goods to customers
• Wholesalers: Distributing stock to retailers
• Removals companies: Household and commercial moves

Even if you only occasionally transport goods, you could be liable if something goes wrong. Consider whether you need cover for:

• Goods belonging to customers (third-party goods)
• Your own stock or materials
• Tools and equipment
• Samples and demonstration items
• Documents and data

Types of Goods in Transit Cover

Own Goods

Covers goods that belong to you—your stock, materials, tools, or equipment. This is relevant if you're transporting your own goods between locations or to customers.

Hauliers Liability (Third-Party Goods)

Covers your legal liability for goods belonging to others while in your care. This is the standard cover for haulage companies and couriers.

All Risks

The most comprehensive cover, protecting against all risks of loss or damage unless specifically excluded. More expensive but provides broader protection.

Named Perils

Covers only specific listed perils (e.g., fire, theft, accident). More limited but leaves gaps for unlisted causes of loss.

What's Typically Covered?

A comprehensive GIT policy typically covers loss or damage caused by:

• Road traffic accidents
• Fire and explosion
• Theft (including theft of the whole vehicle)
• Attempted theft
• Malicious damage
• Overturning of the vehicle
• Collision or impact
• Loading and unloading accidents

Cover Limits

GIT policies have limits on how much they'll pay. Common limits include:

• Per vehicle limit: Maximum payout for any one vehicle/load
• Per item limit: Maximum for any single item
• Annual aggregate: Total claims limit per policy year

Ensure your limits match the value of goods you typically carry. Underinsurance can leave you significantly out of pocket.

Common Exclusions

GIT policies typically exclude:

• Theft from unattended vehicles (unless security requirements met)
• Wear and tear, gradual deterioration
• Inherent vice (goods that naturally spoil or degrade)
• Inadequate packing
• Delay (consequential losses from late delivery)
• Certain high-value items without declaration
• Goods left overnight in vehicles (varies by policy)

Security Requirements

Most policies require specific security measures for theft cover to apply. Common requirements include:

• Vehicle must be locked when unattended
• Keys must not be left in or on the vehicle
• Goods must be out of sight or in a locked load area
• Overnight parking in secure locations
• Alarms or tracking devices for high-value loads

Getting the Right Cover

When arranging GIT insurance, consider:

• What's the maximum value you carry in any one vehicle?
• Do you carry your own goods, third-party goods, or both?
• What types of goods do you carry? (Some need special cover)
• Do you need cover for loading/unloading?
• What security measures do you have in place?
• Do you need cover for goods stored temporarily?

GIT insurance can often be added to your fleet policy or arranged as a standalone policy. A specialist broker can help you find the right cover at a terms suited to your needs.

Remember to review your cover regularly. As your business grows and the value of goods you carry increases, your insurance needs to keep pace.