How to insure goods in transit?

Insuring goods in transit requires choosing either a single-trip policy for isolated shipments or an annual open policy for continuous business freight.

💡 Determine Your Shipping Volume

• Single-Trip Policy: Best for one-off moves or single commercial consignments.
• Annual Open Policy: Best for recurring shipments and high-volume business logistics.

📊 Compare Policy Types

📋 Steps to Secure Coverage

• Audit carrier limits: Standard carrier liability pays by weight, not actual item value.
• Select coverage scope: Choose "all-risk" protection for comprehensive loss, theft, and damage.
• Disclose specific cargo: List high-value items, refrigeration, or special handling needs.
• Review exclusions: Verify rules on overnight vehicle storage and packaging requirements.

You can get goods in transit (GIT) insurance by adding it as an extension to your existing commercial van or business insurance policy, or by purchasing a standalone policy through a broker or comparison site like MoneySuperMarket.

How to Buy the Policy

• Prepare your details: Know your business type, annual turnover, vehicle security, the maximum value of the cargo you carry, and your normal transit routes.
• Check existing coverage: Review your current commercial vehicle or courier policy to see if basic goods in transit protection is already included.
• Compare quotes: Use online business insurance platforms or broker networks (such as AXA UK or GoCompare) to compare levels of protection and pricing.
• Finalise and pay: Select the coverage limit that matches your highest-load value (e.g., £10,000, £25,000, or £50,000 per vehicle) and pay monthly or annually to activate your policy documents.

What You Need to Know

• Not a legal requirement: Unlike van insurance, GIT insurance is optional by law, though many clients or contracts require you to have it before working.
• Vehicle vs. contents: Standard van insurance only covers damage to your vehicle, while GIT insurance covers the actual stock or customer products inside it against theft, loss, or accidental damage.
• Check exclusions: High-risk items (like cash, fine art, or jewelry), hazardous materials, and overnight thefts from unlocked or unattended vehicles are usually excluded unless you buy specialist extensions.

The cost of goods in transit (GIT) insurance typically ranges from £7 to £25 per month (or roughly £90 to £300 per year) for a standard small business or courier. However, the exact price is highly variable and depends directly on the value of the items you are transporting and your specific coverage limit.

Sample Premium Ranges by Coverage Limit

(Note: For large-scale logistics operations, high-value freight, or heavy goods vehicles, specialized commercial truck cargo policies can range significantly higher, often from £1,500 to over £6,000 annually).

Key Factors That Influence Your Cost

• Value and Type of Cargo: Transporting everyday parcels or household furniture is cheaper than hauling high-risk, easily stolen, or fragile items like electronics, designer clothes, alcohol, or tobacco. Highly specialized items (like livestock or hazardous chemicals) require expensive specialty riders or may be excluded entirely.
• Operating Radius & Travel Distance: Driving locally or within a short fixed radius keeps premiums low. Long-distance haulage or international transit (such as European EU coverage) will increase your rates.
• Vehicle Security: Insurers will evaluate your vehicle's security features. Vehicles fitted with alarms, tracking devices, and deadlocks generally qualify for lower premiums. Leaving goods in an unattended vehicle overnight can also raise costs or restrict coverage.
• Driving and Claims History: A clean driving record and a history of zero previous transit insurance claims will keep your premiums at the lower end of the spectrum.

Important Distinction

Goods in transit insurance only covers the cargo itself against theft, loss, or accidental damage. It does not cover the vehicle or third-party accidents. If you are a courier or delivery driver working for profit, you will also legally need Hire & Reward (H&R) van insurance, which is billed separately and is significantly more expensive (often averaging £1,450 to £2,150 per year).

Goods in transit insurance covers the cost of loss, theft, or damage to business inventory, stock, or customer property while it is being transported from one location to another.

What is Covered

• Accidents and Collisions: Damage resulting from vehicle crashes, rollovers, or sudden braking.
• Theft and Vandalism: Loss if the vehicle is broken into or stolen while on a route.
• Fire and Weather: Destruction caused by vehicle fires or severe storms.
• Loading and Unloading: Accidental drops or mishandling while items are being loaded onto or taken off the transport vehicle.

What is Typically Not Covered

• Theft from Unattended Vehicles: Items stolen from an overnight or unattended vehicle left unsecured or ungaraged.
• The Vehicle Itself: Standard policies cover only the cargo inside, requiring a separate commercial auto or van policy for the vehicle.
• General Exclusions: High-risk items like loose money, precious stones, livestock, or hazardous materials are often excluded unless specifically added.
• Indirect Losses: Loss of future profits, business delays, or consequential financial drops are usually excluded.

You can review options or start planning a policy through providers like Progressive Commercial or compare market choices via platforms like GoCompare.

Yes, you can insure goods while they are being transported using a Transit Insurance Policy, also known as marine cargo or goods-in-transit insurance.

Coverage Details

• Protected Risks: Covers loss or damage from fire, theft, vehicle collisions, overturning of the transport vehicle, and natural disasters.
• Modes of Transport: Applies to goods moved via road, rail, air, or sea.
• Policy Types: Available as a single-transit plan for a one-time shipment or an annual open policy for regular business shipments.
• Cost: Premiums typically scale with the declared invoice value, cargo type, route, and distance. Options via platforms like Policybazaar Corporate Insurance start at nominal rates depending on the coverage amount.