Goods in transit insurance covers the cost of replacing or repairing goods that are lost, stolen or damaged while they’re being carried in your vehicle for work. It’s separate from your vehicle insurance, and separate from hire and reward cover too. Here’s exactly what it does, who needs it, and how much it tends to cost.
Goods in transit insurance
We arrange goods in transit cover as part of our courier van insurance policies. Get a quote in minutes.
What does goods in transit insurance cover?
Goods in transit insurance pays out if the items you’re carrying are lost, stolen or damaged during a job. That includes goods belonging to a customer, your own stock, or equipment you’re moving as part of your work.
It typically covers:
- Theft of goods from your vehicle, provided it’s properly secured
- Damage caused by an accident or collision
- Goods lost or damaged while loading and unloading
- Damage caused by unforeseen events during the journey, such as a vehicle fire
Cover usually applies from the moment goods are loaded into your vehicle until they’re delivered. Most policies set a maximum payout limit, often £5,000 to £10,000 as standard, though higher limits are available if you regularly carry higher-value goods.
What doesn’t it cover?
It’s just as important to know where the gaps are. Goods in transit insurance generally doesn’t cover:
- Goods left in an unattended vehicle overnight, unless it’s parked somewhere secure like a locked garage or yard.
- Normal wear and tear, or damage caused by poor packaging.
- Cash, jewellery and other high-risk items, unless you’ve specifically arranged cover for them.
- Damage to your vehicle itself. That’s a separate policy.
- Injury to a third party while you’re loading or unloading. That falls under public liability insurance.
If you’re regularly carrying anything particularly valuable or unusual, it’s worth checking with your insurer that it’s actually included rather than assuming.
Who needs goods in transit insurance?
Anyone who’s paid to move goods that don’t belong to them should have this in place. The most common examples are:
- Courier and parcel delivery drivers
- Removal and relocation businesses
- Tradespeople carrying tools, materials or equipment between jobs
- Haulage and freight operators
- Retailers and online sellers transporting stock or fulfilling deliveries themselves
If a customer’s goods are damaged or go missing while in your care and you don’t have this cover, you’d likely be paying to replace them out of your own pocket. For a one-off mistake that’s painful. For a business that relies on repeat work, it can do real damage to your reputation as well as your bank balance.
Is goods in transit insurance a legal requirement?
No. Unlike hire and reward insurance, there’s no law that says you must have goods in transit cover. But many clients and contracts will require it before they’ll work with you, particularly if you’re carrying anything of real value. It’s also simply good practice. Without it, you’re personally exposed every time something in the back of your van is lost, stolen or damaged.
Goods in transit vs hire and reward insurance
These two are often confused, but they cover completely different things.
Hire and reward insurance is about your vehicle. It’s the class of cover that legally allows you to carry passengers or goods for payment in the first place. Without it, you can’t legally operate as a courier or driver at all. You can read more in our guide to what is hire and reward insurance.
Goods in transit insurance is about the cargo. It protects the actual items you’re carrying if something happens to them.
Most courier and delivery drivers need both. Hire and reward gives you the legal right to do the work. Goods in transit protects you financially if something goes wrong with what you’re carrying while you do it.
Goods in transit vs public liability insurance
These two also get mixed up, for similar reasons.
Public liability insurance covers claims made against you by someone else, typically if they’re injured or their property is damaged because of your work. You can read more in our guide to what does public liability insurance cover.
Goods in transit insurance covers the goods themselves, not a claim from a third party.
A practical example: if you drop a customer’s parcel and damage it, that’s goods in transit. If you injure someone while unloading it from your van, that’s public liability. Many businesses that carry goods for a living benefit from having both in place.
How much does goods in transit insurance cost?
There’s no fixed price, since it depends on your specific business and how you operate. The main things that affect your premium are:
- The value of the goods you typically carry.
- The type of goods. Fragile or high-value items usually cost more to insure.
- How often you’re transporting goods, and over what distances.
- Your chosen cover limit and excess.
- The security measures you have in place, both on the vehicle and overnight.
For a small courier operation, basic annual cover often starts in the low hundreds of pounds. Larger cover limits, higher-value goods or specialist cargo will push the cost up from there. The most accurate way to find out what you’d pay is to get a quote based on your own circumstances.
How to keep your premium down
A few practical steps can help bring the cost down without leaving you underinsured:
- Improve security on your vehicle. Alarms, deadlocks and immobilisers all reduce risk in an insurer’s eyes.
- Park securely overnight. A locked garage or yard is far better than parking on the street.
- Choose a higher voluntary excess if you can comfortably afford it.
- Take out an annual policy rather than several short-term ones if you’re working regularly, since this is usually better value.
How to get goods in transit insurance
Before getting a quote, it helps to know:
- What type of goods you carry, and roughly what they’re worth.
- How often you’re transporting them, and over what kind of journeys.
- Whether you also need hire and reward or public liability cover alongside it.
- What vehicle you’re using for the work.
At insurd, we arrange goods in transit cover as part of our courier van insurance, alongside hire and reward and public liability where needed. Get a courier van insurance quote and we’ll help you find the right level of cover for your business.
FAQs
Does goods in transit insurance cover goods left in my van overnight?
Only if the vehicle is parked somewhere secure, such as a locked garage or yard. Goods left in a vehicle parked on the street overnight are typically not covered.
Can I get goods in transit insurance for a single job?
Yes. Temporary or one-off cover is available for short-term jobs like a single removal or a busy seasonal period, though it tends to cost more per day than an annual policy.
Do I need goods in transit insurance if my van insurance already includes some cover?
Check carefully. Some van and courier policies include a basic level of goods in transit cover, but the limits are often lower than you'd expect. If you regularly carry higher-value goods, it's worth checking whether you need additional cover on top.
Does it cover damage caused by bad packaging?
No. Most policies exclude damage caused by goods being poorly packed, since this is considered avoidable.
Looking for goods in transit cover? insurd arranges courier van insurance with goods in transit, hire and reward, and public liability cover all available together. Get a quote in minutes.
