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A Guide to Goods in Transit Insurance

Designed primarily for those working as haulage or courier drivers, protecting your cargo while in transit is essential to avoiding financial losses. When goods are transported from one location to the next, there is an increased risk of loss, damage, or theft. A goods in transit insurance policy will help protect you against any unforeseen circumstances.

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What is goods in transit insurance?

A goods in transit insurance policy will protect the goods that are being stored in your Van whilst in transit from one location to the next. A business is able to take out a goods in transit policy to protect their own cargo, whether is being transported in their own vehicles or those of third party contactors.

Goods in transit cover is usually offered to some degree when taking out any insurance for carriage of own goods for hire or reward. When comparing different policies, you should look for goods in transit cover that’s high enough to meet or exceed the value of the cargo you are carrying.

The most comprehensive goods in transit cover is usually sold as a separate policy. The value and nature of your cargo is going to determine how much extra you pay on top of your standard policy.

What levels of cover are available?

Just like your Van insurance, a goods in transit policy will have different levels of cover which can be tailored to your individual requirements. Depending on the type of cargo your transporting, and its frequency, finding the right level of cover is easy when comparing with vaninsurance.co.uk.

  • New for Old

    If your cargo was subject to damage or theft while in transit, a new for old policy will provide direct replacements to fully compensate you for any losses, regardless of age. New for old ensures that you get like for like replacements for what you are claiming. This means the exact same, new version or the same make, same model as the goods that we lost, damaged or stolen.

    New for old cover will ultimately provide better peace of mind to a business owner, knowing that should the worst happen, their cargo will be replace without any financial losses. That being said, peace of mind often comes with a bigger premium and you should be prepared to pay a little more for this type of cover.

    It’s worth noting however that not all categories of goods will fall under this policy. Smaller, more fragile goods and those deemed theft attractive in the eyes of the insurance company may only be insured for half their value. This is applied to electrical items specifically such as iPad’s, iPhone’s, laptop computers and expensive camera equipment.

  • Indemnity Cover

    This is a cheaper alternative to new for old but comes with some limitations. Indemnity cover is often referred to in the industry as wear and tear cover and is a primary option if you are delivering goods that are not brand new.

    Indemnity cover will protect the goods you are transporting but only in the condition they were in prior to damage or theft. In simple terms, a business that’s making a claim for machinery that’s 5 years old, will only be paid out at today’s price. In this case, annual depreciation is taken into consideration.

    In respect, it’s worth noting that although an indemnity policy costs less, if you do need to make a claim, the pay out authorised by your insurance company may not cover the cost of replacing the goods you’ve lost. If you feel you run the risk of any financial loss as a result, you should look to increase the cover on the goods you’re transporting.

Whats covered with a goods in transit policy?

Although every insurance company is different and comes with its own set of exclusions and limitations, standard cover for a goods in transit policy remains the same. When comparing quotes, you should always look at the policy documentation to see exactly what you can and can’t claim for.

Typically, a goods in transit policy will cover you in the event of loss, damage in an accident and in transit as well as unforeseen delays and theft from your vehicle.

Most delivery drivers are working on behalf of a supplier. Making sure their cargo is protected while you’re delivering it will give you peace of mind and ultimately better business credibility. Be sure to accurately declare the value of your load and ensure you have adequate cover should the worst happen.

Whats not covered?

Every insurance policy, regardless of how comprehensive it is, will have some limitations. The transportation of livestock or human remains for example certainly won’t be covered under traditional policy. Meanwhile, liquids, perishables, food, chemicals, and hazardous goods will understandably need a custom goods in transit policy.

Many insurance companies will invalidate their cover if they can prove your load was not adequality packaged and secured within the van. Always make sure that whatever you’re carrying has the necessary safety precautions taken to limit damage.

Any theft of contents from your Van while the keys were left in it will almost certainly not be covered and you’ll need to prove entry was forced when making your claim.

As a side note, you should be aware that most insurance companies won’t cover goods stored in your Van overnight. Depending on your location, the risk factor to overnight theft can be increased tenfold. If you’re unable to unload you Van each evening, or if it’s not possible to park in a secure lock up, you should talk to your insurers about added protection that will cover you in these eventualities.

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