Compare goods in transit insurance

Personalised cover from as little as £7.42 a month. Get your quote in just four minutes.

*The price of £7.42 p/mth is for a courier who purchases goods in transit with a £10,000 limit for one vehicle. Goods in transit cover is only available to couriers and removal contractors and must be purchased alongside public liability insurance.

What is goods in transit insurance?

Woman sitting on a sofa looking at a phone and credit card.

If moving business or customer goods is a regular activity for your business, goods in transit insurance is something you should consider.

It offers cover for any cargo your business transports in the event it gets damaged, stolen or lost. You might consider goods in transit cover if you transport items or products from a factory or workshop to a business premises, retail outlet or private property.

There’s different types of cover depending on the type of cargo you transport, so be sure to check around to find a policy for the best price that covers your business’ activities.

It’s important to note that the contents of the vehicle are covered while it is moving, not before departure or after your arrival.

Who needs goods in transit insurance?

Goods in transit insurance can be useful for courier services, delivery companies and removal services.

Tradespeople, online retailers, shop owners and any other businesses that regularly send or transport stock and materials might also consider goods in transit cover.

Is goods in transit insurance a legal requirement?

Most business insurance policies in the UK aren’t a legal requirement. But the impact on your business can be significant if a claim is made against you and you don’t have adequate cover.

Goods in transit insurance is no exception. If you’re transporting goods and they arrive damaged, or they’re lost or stolen while in transit, the owner of the goods can look to your business to put things right.

Depending on the cargo - this could lead to you needing to pay out significant expenses. It can also severely damage your business’ reputation.

And even if nothing goes wrong, some customers may insist on you having sufficient goods in transit cover, meaning you may miss out on securing work in the first place.

What our customers say

What should you look out for when getting goods in transit insurance?

There’s a lot to think about when picking the right level of goods in transit cover. There are the basics - such as understanding the value of the goods you’re transporting and the logistics of how you’ll be transporting them - but there’s more.

Understanding specific policy cover can help you avoid large unexpected costs for your business in the event something goes wrong. So think about whether the cover protects:

Personal items used to transport and protect goods, e.g. straps and fastenings
A customer’s property - for example if your vehicle hits it during delivery/pickup
A trailer you might use to transport goods
Your personal property
The transportation of goods to other countries
The transportation of hazardous items

It’s also worth thinking about specific policy terms and where your liability starts and ends. There are often specific policy terms in place when it comes to refrigerated items, or the transportation of livestock. Moving goods like these around requires temperature control units - so you’ll want to know who’s responsible if that unit fails.

Transportation is only one part of the job too - there’s also loading and unloading. Checking the policy terms and understanding who’s liable and at what point can help avoid declined claims and unexpected bills.

What Cover Do You Need?

Goods in transit insurance is designed to provide cover for items that are:

Damaged during loading, unloading or in transit.
Lost;
Accidentally damaged during transit; or
Stolen.

From weather damage and infestation to something falling off the vehicle during transit, damage to goods comes in different forms and to varying extents and needs adequate cover. If you’re transporting high-value items or delicate goods, it’s worth checking your policy to make sure you have the right level of cover.

How Can You Lower The Cost of Your Policy

Running a business is expensive - so finding a way to lower insurance policy costs can be a big help. The good news is there are things you can do to lower the costs of goods in transit insurance.

Know the value of your goods

when you take out a goods in transit policy you’ll need to declare the value of the goods you’re transporting. Overestimating means you’ll pay more in premiums than you need to. Just be aware that underestimating will mean you won’t have adequate cover, which can be much more expensive in the event of a claim.

Enhanced packaging

If you’re seen to be taking significant steps to protect the goods your transporting - for example high-quality packaging materials and secure transport methods - an insurer may offer lower premiums.

Vehicle security

You could look to improve your vehicle’s security to reduce the potential risk of theft. You could also consider GPS tracking too.

Black box

You could speak to your insurer about the option of installing a black box - many offer a discount on your premiums if you’re happy to evidence that you’re a safe driver as the risk of having an accident is lower.

When won’t you be covered with goods in transit insurance

Goods in transit insurance protects against a wide range of business activities. However, there are some situations your insurance won’t cover. It’s crucial you understand any exclusions set out in the policy terms because your claim will likely be declined if you’re claiming for something not covered.

Here are a few examples where you might not be covered:

You are transporting items that cannot be covered, like banned substances, controlled drugs or dangerous goods
Your vehicle (or vehicles) used to transport goods is a road tanker or exceeds 7,500kg (gross vehicle weight)
Theft of, or damage to, your items or stock happens while stored at a rental
The items being transported are confiscated or requisitioned, for example by customs or the police

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

Goods in transit claim examples

Mistakes happen when your business transports goods and you might need to make a claim. Here a few examples where your goods in transit cover could help you:

You drop an item

We’re only human and things get dropped. Provided that you can demonstrate it was an accident rather than negligence, your insurance could come to the rescue.

You lose the cargo

Sometimes things go missing, especially when you’re moving large quantities. When this happens, your goods in transit policy can cover the cost of the missing items.

You vehicle’s broken into

You've locked your vehicle and secured the stock properly while stopping at a service station during an overnight shift, your van is broken into and the stock is stolen.

What’s the difference between goods in transit insurance and courier insurance?

Goods in transit cover and courier insurance might both look similar and appeal to similar businesses, but they each have a different purpose.

Courier insurance is usually made up of a number of different covers to protect against the risks faced by a courier business. For example a courier is likely going to require cover for potential injury or damage to their vehicle with the same cover needed if anything happens to a third-party.

Goods in transit insurance specifically covers goods, material or property that’s transported in your vehicle that may be damaged, lost or stolen.

Goods in transit insurance can help your business avoid some hefty costs in the event any goods you're transporting are lost, damaged or stolen. Having adequate cover in place protects you from paying to put things right personally. ”

Salman Haqqi, Senior Editor - Personal Finance

Types of business insurance

Not all businesses require the same range of cover. For example, some types of insurance can be a legal requirement in certain circumstances such as employers' liability is when you have people working for you.

Your business insurance requirements may also depend on the type of work you do and the size and turnover of your business.

The types of covers to consider when building your business insurance covers could include:

Employers’ liability insurance

If your business hires employees you’re likely to need employers’ liability insurance as this is a legal requirement for most employers. If a company does not have employers liability insurance, it can be fined at a rate of £2,500 for every day the company has traded without it.

Public liability insurance

This is worth considering if people come to your premises or if your business involves in-person interaction with clients.

It covers you if a member of the public is injured or even killed as a result of your business activities or their property is damaged.

Professional indemnity insurance

If you provide professional advice, knowledge or skills as part of your work you should consider this type of insurance. If you’re sued for giving negligent advice or services, it could be costly and damage your reputation.

Some professions, such as solicitors and accountants, are required to have it.

Business contents insurance

In the event that your business contents are damaged or lost due to fire, flooding, malicious damage, storm damage or theft, this can cover you for the cost of repairs or replacement.

Make sure you include all your equipment – such as computers, laptops, phones, technical machinery, documents and even cash – when working out how much contents cover you need.

Cyber insurance

This provides protection against things like cyber attacks or accidental data breaches. It can also provide specialist technical, financial and communications support in the event of a cyber incident.

From ransomware attacks to accidental privacy breaches, the cost to your business can be devastating if you’re not insured.

D&O insurance

Directors’ and officers’ insurance, also known as management liability insurance, covers claims made personally against company directors and officers for wrongful acts, such as a breach of trust or misleading statements.

Without it, any directors and officers in your business may not be able to defend themselves against claims that could result in disqualification from their position, compensation and legal costs or criminal prosecution.

FAQs

Are the goods in my vehicles covered?

Goods transported in up to five vehicles may be covered as standard, but you should contact your insurer if you need to insure more vehicles.

How much does goods in transit insurance cost?

Prices for goods in transit insurance vary. The price may depend on factors like how many employees you have, level of cover you choose and how much you turnover.

What level of cover do I need?

Level of cover depends on the risks you face, you should always assess what cover you think you need and check a policy matches what you need. You can check with the insurer if you're unsure.

Do I need business insurance?

For the most part, you’re not required to have business insurance in the UK. One exception is where a business employs full-time, part-time, or temporary staff. Under these circumstances, employers' liability insurance can be a legal requirement for businesses.

It's ultimately important to ask what the cost would be to your business if you need to claim, or a claim is made against you, and you don't have insurance.

Can you insure goods left in a vehicle overnight?

Provided that everything is secured properly, goods stored in a vehicle overnight can be covered. Full details can be found in your policy documents.

Compare goods in transit insurance

Personalised cover from as little as £7.42 a month. Get your quote in just four minutes.