For those running a fleet or commercial vehicle there are many insurance needs to consider. Of course, it is important to cover the vehicle itself but what about the goods you may be transporting? Whether you are transporting your own goods or are a haulier transporting goods for others, it is important to consider what you would do if anything were to happen to those goods.
What is Goods in Transit Insurance?
Goods in Transit insurance is designed to cover goods that are being transported by vehicle from one place to another. The cover applies when goods are being transported during the course of business.
The insurance will typically cover the goods when they are in transit in case of:
• Loss
• Damage
• Theft
The cover doesn’t extend to the items when they are being stored in a warehouse or similar, only when in transit.
Goods in transit insurance is designed to cover just the contents being transported, not the vehicle – it is usually required in addition to vehicle insurance itself. You may find that some commercial vehicle insurance includes an element of goods in transit insurance, but you will need to check the policy details to be certain.
Who needs Goods in Transit Insurance?
If you use your vehicle to transport goods of any value, then goods in transit insurance may be worth considering for your business. You may only run one vehicle, or you may have a fleet of vehicles.
Goods in Transit Insurance can be beneficial to your business whether you are:
Carrying your own goods – such as tools, equipment or material associated with your business
Carrying goods for others – such as a courier or haulier. As the goods aren’t your own financial implications of anything going wrong could be more significant
Some industries that may want to consider the cover include:
• Couriers
• Removal companies
• Hauliers and those in the haulage industry
If you do transport goods for others, some customers may expect you to have the cover in place so that they know that their business and financial interests are covered if anything were to happen to their items whilst they are in transit.
What types and levels of coverage are available?
Types and levels of cover available will depend on a number of factors. As usual before purchasing any insurance cover it is important to read the policy wording in order to understand exactly what cover you are getting.
- The number of vehicles you operate
If you own a single van transporting goods related to your own business, you may find that a commercial vehicle insurance policy offers sufficient cover. If you have more than one vehicle then you most likely need to consider a standalone Goods in Transit Insurance policy - The goods you transport
The type and value of the goods that you transport will also affect your insurance needs. Some policies will limit the amount of cover offered or exclude certain items. Likewise, in order to work under the Road Haulage Association (RHA ) conditions of carriage haulage companies are required to have insurance cover of £1,300 per tonne so areas like this are also worth being aware of.
What is the average cost of Goods in Transit Insurance?
The cost of Goods in Transit Insurance will vary depending on how much cover you require which will be defined by a number of different areas such as:
• The value of the goods that you transport
• How much cargo you transport
• How frequently you transport goods
It is worth discussing your needs with your insurer or insurance broker in depth to help ensure that you get the right policy for your business and do not find yourself in a position of being underinsured. Something which could be devastating to your business if the worst should happen.
At Anthony Jones we have a specialist transport and cargo insurance team. Each client will have a dedicated motor expert who works to understand your business inside and out so that they can make sure that you have the right insurance solution in place. Give the team a call today on 020 8290 9099 or email us at commercial.motor@anthonyjones.com.
