Do you need Goods In Transit Cover?

DA13 DNJ 01 MANDo you need Goods In Transit Cover?

If there is one area of business that always seems to be a headache for both haulage contractors and couriers it is likely to be goods in transit insurance.

The reasons may be because:

  • responsibility for goods in transit insurance is frequently a moot point between the consignor and the carrier of the goods – with scope for one party to assume that the other had arranged the necessary insurance, and vice versa;
  • the intrinsically complicated status of goods in transit; and
  • the importance attached to the delivery of goods intact and on time
  • evidence of the importance of safe delivery as scheduled for key events emerges in a story by the BBC recently about a failure of a major courier firm to deliver flowers for Mother’s Day (and an earlier incident when the same firm broke items intended for Remembrance Day the previous year);
  • indeed, it is the complexity and importance of getting it right that makes goods in transit insurance probably the subject you are most likely to benefit from referring to a specialist insurance provider of this kind of product – a provider just such as ourselves at Isis Insurance, for instance;
  • if you take the precaution of arranging goods in transport insurance just what is it likely to cover;
  • there are typically three principal risks and perils covered by this type of insurance – the loss, damage or delay in delivery of the insured goods;
  • haulage contractors typically carry goods for their customers according to standard forms of contract, which set out who is responsible for any particular aspect of insurance and generally limiting the carrier’s liability
  • despite any limitation of liability, however, you may nevertheless want to ensure that your responsibilities for the safe and timely delivery of the goods you are carrying are adequately protected – bearing in mind, however, that the scope of such policies may vary considerably from one insurer to another;
  • a further consideration to bear in mind is that certain good may be considered by an insurer to be especially vulnerable to loss by theft – popular gadgets such as mobile phones, cameras and computer tablets, for example;
  • some insurers may also impose special conditions on, or even exclude, goods in transit comprising property transported in connection with individuals moving house;
  • special conditions are of course likely to apply to the carriage of hazardous and dangerous goods, or those requiring refrigerated or temperature controlled conditions whilst in transit;
  • there may be restrictions on the countries in which the vehicle may operate;
  • there may also be occasions – especially when goods of particular value or known appeal are being transported – when approved levels and standards of security are fitted to the vehicle;
  • a further security requirement may be that the vehicle is not left unattended when carrying items known to be of particular attraction to thieves.

It may be apparent, therefore, that goods in transit may be an unusually complicated product for which the services of a specialist insurance provider may prove invaluable.