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Goods in transit insurance

For those working as haulage, courier, or delivery drivers, protecting your cargo while in transit is essential to avoiding any unforeseen financial losses. A goods in transit insurance policy will ensure your cargo is protected from loss, damage or theft while being transported from one location to another. While some Van or courier insurance policies do include a certain element of goods in transit cover, it's usually insufficient. It's recommended to seek a separate policy or add-on to ensure you have adequate cover for the value of your cargo.

What is a goods in transit insurance cover?

While your Van insurance policy covers you, your Van and other road users, Goods in transit cover is designed to protect the cargo that you are transporting from one place to another or while its being stored in preparation for transport. For example, a business can take out goods in transit cover to protect their cargo, even if it’s being transported by third party contractors from multiple distribution hubs.

If you plan to work as a courier or delivery driver, especially if self-employed, you’ll need to make sure you have adequate protection for the goods your transporting. In the event that your cargo becomes damaged during transit or subject to theft, you’ll be able to claim from your insurance company up to the maximum limits stipulated in your policy documentation.

What are the different types of goods in transit insurance?

Just like Van insurance, a goods in transit policy has varying levels of cover. What works best for you will depend on what your transporting, its frequency, and its overall value. Transit insurance for goods can be tailored to your individual requirements and finding the right level of cover is easy when using vaninsurance.com.

New for Old Replacement

If your cargo was subject to damage or theft while in transit, a new for old policy will provide direct replacements to fully compensate you for any losses, regardless of age. New for old ensures that you get like for like replacements for what you are claiming. This means the exact same, new version or the same make, same model as the goods that we lost, damaged or stolen.

New for old cover is better suited to those transporting brand new items and provides ultimate peace of mind that should the worst happen, you’re going to be fully compensated. For that very reason, you should be prepared to pay a little more for this type of cover.

One note to make is that not all categories of goods can be fully insured under a new for old policy. Certain higher value items and those deemed theft attractive may only be insured to half their value. Items falling under these categories are usually electronics such as Iphones, iPads, camera equipment, computers, and laptops.
Indemnity Cover

The cheaper alternative to new for old is indemnity cover, however it does have some limitations and is better suited to those transporting goods that are not brand new. As always, you should seek advice from a specialist insurance broker if you are unsure on the best options to suit your requirements.

Indemnity polices still cover the goods that you are transporting but only to the condition they were in prior to being damaged or stolen. If a business were making a claim for machinery that’s 5 years old, they would only be compensated at today’s market value with annual depreciation taken into consideration.

Because of the limitations of this type of policy, it’s worth noting that should you need to make a claim, the pay-out authorised by your insurance company may not cover the total cost of replacing the items you’ve lost. Look closely at the value of your load and always make sure you have adequate protection. seek additional cover to make up any short falls.

Whats covered?

Generally speaking, a goods in transit insurance policy will cover the cost of replacing the goods you are transporting should they become damaged while in transit or stolen from your vehicle. You may also receive some additional perks with your policy such as cover for unforeseen delays or acts of god.

Since most delivery drivers, couriers and hauliers work on behalf of a depot or supplier, making sure you have the right level of cover in place not only gives you peace of mind but also better business credibility. Making sure you accurately declare the value of the goods you regularly transport will ensure no surprises should the worst happen.

Every insurance company is different, and you’ll notice different policies have different levels of cover. We recommend using our online comparison portal to get quotes from as many different providers as possible. Using vaninsurance.com is a great way to save time and money whilst still getting the best insurance cover for you and your business.

Are there any exclusions?

Every insurance policy will have exclusions, policy limits and other limitations that need to be identified and understood. With goods in transit cover, it’s not so much about the insurance policy itself rather the types of goods that can and can’t be covered.

The transportation of human remains, organs or livestock for instance won’t be covered on a standard goods in transit policy. Liquids, foods, chemicals, perishables, and hazardous goods will understandably need a custom goods in transit policy.

You’ll need to make sure that your cargo is secured correctly in your Van. Most insurance companies will invalidate a claim if it can be proven the load was not adequately secured or packaged for transport.

You should also be aware that theft from a Van where the keys were left in it or it was left unattended overnight would certainly provide cause to invalidate a claim. If you need to leave your cargo overnight, make sure your insurance policy has the necessary increased cover for this.

How do I get a goods in transit insurance quote?

With vaninsurance.com, it’s now easier than ever to get a goods in transit insurance online quote. Since our platform allows you to compare multiple quotes at the same, you’ll be able to quickly establish which deal is best for you. We’re here to help online and on the phone. If you prefer to speak with an insurance specialist directly, give our UK based offices a call.

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