Goods in transit insurance: All you need to know
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 bigger variety of entities throughout the supply chain from the UK. Understanding the policy wording, knowing when a Goods in transit insurance is useful and how to get the best cover at the cheapest cost grants the best protection against future potential troubles, 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 solutions are the same things. Please note that private individuals may also need it when carrying equipment which is not their property.
More and more key players are involved in the handling of packages to carry so it's all the more important to have your effects protected from pick-up to delivery against loss, damage or theft, during shipping, freight, transportation (physical movement of the products) and logistics (orders, stocks, etc.). The bigger the distance the greater the risk for transported goods.
When is a GIT insurance and public liability useful?
Insurance solutions are recommended, even crucial depending on the nature of products being transported, even though not mandatory. In many cases, companies will see it as a requirement though. Businesses which need their own products to be delivered to their customers or their equipment moved on a daily basis, food drivers included, should think about it. Standard van or car insurance won't apply for commercial drops.
Courier companies, haulage specialists: Courier insurance is different and does not cover parcels, stock, hazardous goods from injury, material or immaterial damage caused to one or more third parties, legal or natural persons. Both policies should be considered.
Home removals: The insurance is essential for protecting household items and personal belongings except for money against theft, loss or damage, fire and natural disasters during the moving process, from the loading to the delivery. To ensure adequate protection, consider the following list of features:
• all-risk coverage, • limits specifying the maximum amount paid out in the event of claims, • inventory and valuation, • packaging and unpacking, • transit delays, • storage, • exclusions, • and claim process.
For international logistics, geographical limitations may apply. Yet they usually include transits to or from UK and Europe destinations. For overseas destination, it is best to check with marine or cargo insurance. A complex network of freight forwarders, carriers, custom brokers, warehouse operators, last-mile delivery providers, parcel carriers, port authorities, terminal operators and custom authorities are involved in imports/exports so it will be worth ensuring the timely and secure movement of your belongings across borders and continents.
Public liability cover is useful in case of people injured or their belongings damaged accidentally. Employer's liability is needed for businesses with one or more employees.
Who is liable for goods in transit?
The Legal Responsibility and Contractual Terms and Conditions are established with the Incoterms. These legal codes such as Free on Board (FOB), Cost and Freight (C&F), Cost, Insurance, and Freight (CIF), and Free Alongside (FAS) determine the extent of liability between sellers and buyers who negotiate the degree of responsibility for transporting the commodities.
Apart from selecting their insurance provider, logistics departments should pay attention to the fact that defective or inadequate packing, stolen or lost parcels because of unattended supervision of a not securely locked vehicle, or dangerous driving will not be covered. Plus, 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 the cost of insurance premiums, including:
• the value of the merchandise, • the nature of the items, • the destination, • the mode of transportation, • and the level of coverage required, whether for a single shipment or for annual cover.
The insurance cost ranges from 0.4% to 5% of the insured value. Secursus offers an online calculator to provide real time rates and business offers to insure shipments with an integrated price simulator into a Website, CRM or app.
How to choose the best Insurance Provider
Insurance in the transportation sector is complex with various options available to cater to specific needs. It is essential to choose the right type and the right level of coverage to ensure adequate protection associated with the movement of merchandise, its value and vehicle used.
Secursus is one of the best goods in transit insurance provider because we have the advantage of being specialized in freight transport insurance. Online quotes are available through the shipping insurance platform. We also offer tailored protections when special circumstances are in order. For high-risk, flammable, perishable, livestock, furniture or tools, please contact our experts to talk about your needs and get a personalized estimate.
