Goods in Transit Insurance
Insuring goods in transit is a real challenge. Even though transportation has drastically changed since the horse-drawn wagon, it is wise to insure your belongings during haulage. International freight is even trickier since Brexit, as packages are typically handled by a wider variety of entities throughout the UK supply chain. Understanding the policy wording, knowing when GIT insurance is useful, and how to get the best cover at the best cost ensures strong protection against potential issues — and a well-deserved peace of mind.
Goods in Transit Insurance — What Is It?
Also known as GIT insurance, freight, haulage, or hauliers liability insurance, these solutions refer to the same type of coverage. Private individuals may also need it when carrying equipment that is not their property.
As more key players become involved in handling packages, it’s increasingly important to protect your goods from pick-up to delivery against loss, damage, or theft — during shipping, freight, transportation (physical movement of goods), and logistics (orders, stocks, etc.).
The greater the distance, the greater the risk.
When Is GIT Insurance and Public Liability Useful?
Insurance solutions are recommended — even crucial — depending on the nature of the products being transported, though not always mandatory. Many companies consider it a requirement.
Businesses that need their products delivered to customers or equipment moved daily (including food delivery drivers) should consider it. Standard van or car insurance will not apply to commercial drops.
Courier Companies and Haulage Specialists
Courier insurance is different and does not cover parcels, stock, or hazardous goods from injury, material, or immaterial damage caused to third parties.
Both policies should be considered together.
Home Removals
This insurance is essential to protect household items and personal belongings (except money) against theft, loss, damage, fire, and natural disasters during a move — from loading to delivery.
To ensure adequate protection, consider the following features:
- All-risk coverage
- Limits specifying the maximum payout in the event of a claim
- Inventory and valuation
- Packaging and unpacking
- Transit delays
- Storage options
- Exclusions
- Claim process
For international logistics, geographical limitations may apply. Typically, they include shipments to or from the UK and Europe. For overseas destinations, it’s best to check marine or cargo insurance.
Given the complex network of freight forwarders, carriers, customs brokers, warehouse operators, last-mile providers, and port authorities involved in imports and exports, ensuring the secure movement of goods across borders is essential.
Public liability coverage is useful if people are injured or their property is damaged accidentally. Employer’s liability is mandatory for businesses with one or more employees.
Who Is Liable for Goods in Transit?
Legal responsibility and contractual terms are defined by the Incoterms. These legal codes — such as FOB (Free on Board), C&F (Cost and Freight), CIF (Cost, Insurance, and Freight), and FAS (Free Alongside Ship) — determine the degree of liability between sellers and buyers during transport negotiations.
Logistics departments should note that:
- Defective or inadequate packing
- Stolen or lost parcels due to unattended or unlocked vehicles
- Dangerous driving
...will typically not be covered.
Additionally, depending on the policy, you could be held responsible for overnight storage in a vehicle.
Get Your Goods in Transit Insurance Quote
Several factors influence insurance premiums, including:
- The value of the merchandise
- The nature of the items
- The destination
- The mode of transportation
- The level of coverage required (single shipment or annual policy)
Insurance costs generally range from 0.2% to 5% of the insured value.
Secursus offers an online calculator that provides real-time rates and tailored business offers to insure shipments, with an integrated price simulator that can be embedded into a website, CRM, or app.
How to Choose the Best Insurance Provider
Insurance in the transportation sector is complex, with various options catering to specific needs. It’s essential to choose the right type and right level of coverage to ensure adequate protection based on the type of goods, their value, and the vehicle used.
Secursus is one of the best goods in transit insurance providers, specializing in freight transport insurance.
Online quotes are available instantly through the shipping insurance platform.
We also offer tailored protection for special circumstances. For high-risk, flammable, perishable, livestock, furniture, or tools, contact our experts for a personalized estimate.
