Goods In Transit Insurance
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What is Goods in Transit Insurance?
Goods in transit (also known as GIT) insurance is simply protection for parcels, equipment, and other cargo you have been hired to move with your vehicle. In other words, this type of insurance provides coverage of all types of goods, including equipment, etc. that are moved from one place to another. The coverage protects the goods that are being distributed.
You’re not legally required to have goods in transit insurance; however, this type of coverage offers the protection for your customers’ cargo, parcels and more. Many businesses make sure their distribution partners have the right type of coverage and may require that you offer proof of goods in transit coverage. So, overall, GIT insurance is a good investment for you and your clients
Goods in Transport Insurance – What It is and Who Needs It
If you’re in the business of transporting goods with a van or other type of vehicle, then you’ll want to consider goods in transport insurance coverage for your business. You’ll want to make sure that you and your clients’ equipment, parcels and cargo are all protected.
We’ve done the research for you and put together some of the most commonly asked questions on this type of insurance coverage.
Who Needs Goods in Transit Insurance
If you run a business that provides haulage or distribution services, you’ll want to consider goods in transit coverage. This insurance is most often bought by those who are:
- Courier drivers (including those how are self-employed)
- Building firms
- Home movers
- Removal contractors
- Car transporters and removers
- And more
What does Goods in Transit insurance Cover?
GIT coverage protects you and your goods from the following:
- Loss during transit (delivered to the wrong address or if the goods were labelled with the incorrect address)
- Damage caused by accidents during transportation
- Theft of goods in transit
- Damages caused during transport
- Delays in transit
- Damage to containers in transit
- Debris removal (in the event of an accident and the need to clean up the roadway)
- Loss or damage to ropes, tarpaulins and sheets (not all policies cover this)
Keep in mind that each insurer’s policy will vary as to what is or is not covered. So, it pays to completely read through each policy and ensure you understand the details of the coverage. Don’t hesitate to ask questions if you don’t understand anything within a specific GIT insurance policy.
What Types of Items are Not Covered by GIT Insurance?
While goods in transit insurance offers protection of many types of cargoes and other items, it does not usually cover the following:
- Live animals
- Money (cash or bullion)
- Fine works of art
- Goods highly attractive to thieves
Make sure to let the insurance provider know the types of goods you transport, including hazardous materials. If not, then in case you have an accident, and you make a claim, it will be denied by the insurance company. They may also revoke your insurance, if you have withheld these and other important details.
Does Goods in Transit Insurance Protect my Van?
In short, the answer is no. GIT insurance is a specific type of business insurance and does not cover your van and other business activities. Plus, you’re legally required to have the minimum amount of commercial vehicle insurance, which is called third party commercial.
Third party coverage protects third parties who may suffer injury or property damage during the operation of your vehicle. You, your vehicle, the cargo and your business are not protected by this type of policy.
One more point to consider—some commercial van policies do offer some protection for goods in transit; however, they may not offer the right level or type of protection that’s right for your business. It may be necessary to buy a separate GIT insurance policy, depending on your business needs.
What else do you need to consider?
Different goods in transit insurance policies generally offer the same basic coverage; however, they may vary in the specific details of the protection offered. Make sure your quote covers what you need. The types of GIT coverage are generally offered in two separate categories:
- Haulage: applies to businesses that only provide transportation services for goods/cargo, such as couriers, for instance.
- Carriage of own goods: is generally for those businesses that transport goods and tools that are related to their work, such as builders.
Be sure to check the policies you’re considering for these points:
- Maximum coverage: what is the amount of cover the policy provides—look for the right amount of protection you’ll specifically need for your type of business.
- Old for new: while not always included in a GIT policy, you may want to consider this coverage if you have specialized and expensive tools. It protects your tools in the event of theft or damage during transport. The policy will give you a new replacement or one of equivalent value in replacement. Old for new coverage generally is more expensive; however, it will save you money in the long run to protect your valuable tools.
- Weight limitations: some insurers may offer weight restricted policies, based on tonnes or even kilos. Make sure you buy the right amount of coverage to protect your cargo.
Commons Questions about Goods in Transit Insurance
Each GIT policy will offer specific types of coverage, so you’ll need to consider these questions when searching for the right insurance for your business:
- Does the policy cover goods at the depot? Most policies only cover the goods during transport, not while they’re waiting at a depot.
- Does the insurance protect goods left in a vehicle overnight? If the vehicle is locked and parked on a secure site (one that has security protection and/or offers gated-only access), then goods may be protected.
- What about transport of goods abroad-are these protected? Most coverage does include Europe; however, you may need a specialized insurance for goods transported internationally.
- Does the type of vehicle matter—will goods be protected in any type of vehicle? The answer depends, as some insurance policies only protect goods in specific types of vehicles.
Again, we want to stress the importance of reading through the policy and asking questions to make sure you buy the righty type and level of insurance coverage for your business. Policy details will vary between insurance providers.
How Much is Goods in Transit Insurance?
The cost of a goods in transit insurance policy will vary on the type of goods you transport, the transportation area or region, the average value of your cargo and more. Your answer to these questions will help the insurer determine the level of risk you present. They’ll base the cost of your premium on that specific level of risk.
To find the best premium for your business consider using an online comparison site. Here, you’ll be able to sort through insurers who provide specialized GIT insurance and you’ll also be able to compare rates and policies quickly.
After you’ve created a list of possible insurers, it’s a good idea to contact each company and talk directly with an insurance agent. Have a list of questions ready and make sure to understand what the policy does or does not cover.
This way, you’ll be able to find the right policy at the best price, while offering your clients the highest level of protection for their goods.
Helpful Links: Insurance Associations
ABI – Association of British Insurers – The Association of British Insurers is the leading trade association for insurers and providers of long term savings. … need to contact their insurer for a Green Card which they will need to carry on them if they wish to drive their vehicle in the EU.
BIBA – British Insurance Brokers’ Association – The British Insurance Brokers’ Association (BIBA) is the UK ‘s leading general insurance organisation.
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