Goods In Transit Insurance – What Amount And Types Of Insurance Is Required As A Haulier?


Goods in transit insurance is insurance cover that protects the goods being transported as a haulier.  The insurance normally covers the haulier against the following:

  • Loss
  • Destruction
  • Damage
  • Theft
  • Delays in delivery
  • Loss
  • Consequential loss for items delivered incorrectly

The sum insured can include the value of the goods being transported, either by way of a limit per package or one sum for the entire consignment.

For couriers and hauliers, goods in transit insurance is essential as it covers the goods against any loss or damage while the goods are in your vehicle or when they are sent by a third party.

What Are Goods In Transit

Goods in transit are those goods and other types of merchandise and inventory that have left the seller’s premises and have yet to reach the buyer.  Goods in transit are also sometimes referred to as transit inventory.

Ownership of the goods in transit remains with the buyer during transit.  Title and ownership of the goods passes to the seller once the goods have been transferred to the buyer.

According to the Department for Transport, billions of tonnes of goods are transported every year by GB registered heavy goods vehicles.  For any business that transports goods in the UK a comprehensive goods in transit insurance policy is essential.

Common Types of Goods In Transit

Some common types of goods in transit that are transported every day include the following:

  • Food
  • Medical equipment
  • Newspapers
  • Chemical products
  • Furniture
  • Household items
  • Machinery
  • Online sales products
  • Animals and livestock
  • Hazardous goods
  • Pallets
  • Textiles
  • Waste
  • Clothing

Is Goods In Transit Insurance a Legal Requirement?

Goods in transit insurance is not a legal requirement.  However, it is recommended that anyone who transports goods should have goods in transit in place to cover any liability that arises from loss or damage to the goods.

For many hauliers and courier companies, they will find that many of their clients and buyers will require them to have goods in transit insurance in place in order to carry the goods, and so it is an essential part of any haulage business.

Who Should Have Goods In Transit Cover?

Any haulier or courier who is involved in transporting goods should ensure that they  have goods insurance cover.  Typically, it is not only hauliers who need goods in transit insurance.  Furniture delivery companies, removal businesses, and food delivery companies also tend to have insurance cover.

Even for small retail business, having goods in transit insurance is important as it means that in the event of goods being damaged or stolen their costs can be recovered.

What Does Goods In Transit Insurance Cover?

Goods in transit insurance protects against loss, destruction, theft, and damage whilst the goods are in transit.  If a client suffers losses due to theft, mishaps, damage or loss of the goods in transit, a comprehensive goods in transit insurance policy can enable them to recover their losses and costs.

Goods in transit insurance policies can also cover you for loss of tools during loading and unloading periods or during transit.  This includes tools, machinery, equipment and personal protective equipment.

An insurance policy relating to goods in transit can be obtained as a standalone insurance policy or be added to your existing business insurance policies.

You should contact goods in transit insurance policy experts to ensure that you obtain a policy that is suitable for your requirements and covers your exact needs.

Examples of Goods In Transit Insurance

A few examples of goods in transit insurance policies include the following:

  • A courier delivering packages comes back from a break to find their vehicle has been broken into and all the packages have been stolen
  • A haulier is transporting refrigerated goods but en route the refrigeration system breaks down and the goods are spoiled.
  • A furniture delivery company damages furniture en route to the delivery address

How Much is Goods In Transit Insurance

The cost of a goods in transit insurance policy will vary depending on the needs of the haulier.  The cost depends on the types of goods being transported, and also the distance being covered by the HGV.

What is Not Covered by Goods In Transit Insurance

The terms of the insurance policy will vary depending on your insurance provider so you should always ensure you read the terms and conditions of your policy carefully.

Generally, there are some common exclusions that are found within goods in transit policies and these include:

  • Theft from unattended vehicles that have not been secured that is in excess of a certain amount
  • Storage of goods
  • Cover that goes beyond the limits stated in the insurance policy
  • Confiscation or damage by the government

In addition to the above, there are some items that goods in transit insurance does not cover.  If the goods are particularly dangerous they may be excluded from the insurance policy.  Also, if the cargo is especially valuable you need to ensure that your policy has sufficient cover in the event of damage or theft.

HGV Insurance

Heavy goods vehicles need comprehensive insurance to ensure the vehicle is protected alongside the driver and the goods carried by the vehicle. Depending on the business you work for, you may need a non-standard and bespoke insurance policy.

ISIS Insurance offers a wide variety of insurance options and quotes that cover everything a HGV might need when it comes to insurance, from skip lorries to refrigerated vehicles.