Goods in transit insurance can cover your business if items are lost, stolen, or damaged while being transported by road, rail, air or sea. It’s ideal for businesses that regularly move valuable goods, offering protection during the journey and peace of mind along the way, whether you or a third party such as Royal Mail, UPS or Evri, is the carrier.

Clear coverage terms are essential for businesses to mitigate risks and maintain smooth operations during the shipping process. Unfortunately, data reveals that four-in-five small to medium enterprises are underinsured, potentially leaving themselves vulnerable to these types of risks.

Cover for goods in transit insurance might be useful for the likes of courier services and removal companies.

It is not a legal requirement like employers' liability insurance typically is if you employ people, but not having it might lead to significant disruption to your business. This includes:

• Financial loss: If you don't have goods in transit insurance then your business is entirely responsible to pay for the loss, damage or theft that may occur while goods are in transit

• Operational disruption: If goods are lost or damaged this could lead to delays in being able to fulfil customer or client demands

• Reputational risks: If lost or damaged goods becomes a consistent issue, it can damage your business' reputation and relationships you might have with customers or clients

The cost of goods in transit insurance will vary depending on your business.

It’s always a good idea to shop around and compare different quotes to find the best deal, but there are also some things you can do to lower the cost. 

For example - having a black box policy, increasing your voluntary excess, investing in your vehicle’s security and being accurate about the value of your goods can make the insurance cheaper. 

You might also consider taking out a package business insurance policy to cover the rest of your business activities, streamlining the costs

If you have goods in transit insurance and you realise that goods have been damaged while being transported, there are a few steps you should take:

• Contact your insurer as soon as possible: Any delay may impact the outcome of the claim

• Report any stolen items to the police: The insurer may require a police report number to process the claim

• Submit a claim form: Be sure to supply proof of the damage or loss. You can usually find this form online via your insurer

• Submit evidence: You'll need to show that you owned or were responsible for the goods you're claiming for - for example delivery orders can prove the goods were in the vehicle at the time of the incident

While goods in transit insurance helps safeguard a wide range of business activities, there are some circumstances where your insurance won’t cover you. It's really important to understand any exclusions and limitations of a policy so your business doesn't get caught out.

Here are some examples of what won't be covered:

• The items being transported are confiscated or requisitioned, for example by customs or the police.

• Theft of, or damage to, your items or stock happens while stored at a rental.

• The vehicle (or vehicles) used to transport goods is a road tanker or exceeds 7,500kg (gross vehicle weight).

• You are transporting items that an insurer won't cover, like banned substances, controlled drugs, dangerous goods, vehicles or livestock.

If your vehicle is damaged as a result of fire or accidental damage, goods in transit insurance does not cover the vehicle itself but the cost for hiring a replacement vehicle can be covered.

Goods in transit cover and courier insurance each have a different purpose, despite appealing to similar businesses.

Courier insurance is usually made up of a number of different covers to protect against the risks faced by a courier business, whereas goods in transit cover is typically bought as an add-on to an existing policy.

FAQs