Goods in transit insurance is a type of business insurance that covers the costs of any goods that are lost, stolen or damaged while being transported. You can buy it as a standalone policy or add it to an existing business insurance policy.
Providers such as Tide offer it for as little as £7 a month, with cover up to £20,000. If you’re after a higher level of cover, you can look at traditional insurers.
What is goods in transit insurance?
As the name suggests, it’s a business insurance policy that covers goods against theft, loss or damage when they’re being transported. Normal car insurance doesn’t cover this, so you need to take out a separate policy if your business transports goods.
What to know before getting goods in transit insurance
Before you take out a policy, you should make sure you know the following:
Know the true value of your load. There’s no point getting a policy that doesn’t cover you for the full amount you need.
Check for any overnight parking or security clauses. Overnight theft from vans is a common insurance claim, so many policies specify where a van must be parked and how secure that location needs to be.
Understand which goods might be excluded. You need to make sure the policy you’re looking at will cover the goods you need cover for.
Get the right policy for your type of work. This will depend on your business and you’ll need to decide based on your individual circumstances.
Read the details on loading and packaging rules. Goods are usually covered when being loaded onto and unloaded from a vehicle, but negligence or incorrect packaging can make a claim invalid.
Who needs it?
There’s no legal requirement to have goods in transit insurance, but it can be extremely costly if you don’t have a policy and find that your goods have been stolen, lost or damaged. As with any insurance policy, it’s there to give you a safety net if you need it.
There’s a range of different professions that benefit from having goods in transit insurance. This includes couriers, delivery drivers, hauliers, freight operators, removalists, tradespeople, retailers, wholesalers and e-commerce businesses. That’s not an exhaustive list, but rather a good indicator of how many different businesses need goods in transit insurance.
What does goods in transit insurance cover?
Speaking in general terms, a goods in transit policy will cover theft, accidental damage, loading and unloading, fire, weather and water damage and lost or mislaid goods. Some providers will also give you the option to add other extensions to your policy, such as cover for tools.
The exact details of every policy will vary, but as an example, Tide’s goods in transit insurance covers the following:
Last stage of delivery. This covers for any loss or damage between the depot and the customer, to ensure you’re protected if something goes wrong.
Accidental damage. If an accident stops you from delivering goods that have been safely packaged, then goods in transit insurance will help cover the cost.
Goods liability. This gives you protection for the specific items you’re contracted to carry.
Delivery tech. Any hardware you use to manage your routes will be covered.
Redirection costs. If you incur any costs because you need to redirect an incorrect delivery, then a goods in transit policy will help with that.
Can you get goods in transit and public liability insurance?
Yes, it’s possible to get them in the same policy or bundled together from the same insurer.
Having both types of insurance gives anyone involved in transporting goods the protection they need to carry out their work. This includes courier drivers, hauliers, tradespeople and retailers, among others.
Common exclusions
It’s important to always read the fine print of an insurance policy, because it will state any exclusions in the policy. Every policy is different and some will allow you to add things that are normally excluded by default. Many of the common exclusions below are a result of that scenario being covered by a different type of insurance.
Overnight theft won’t be covered, unless the vehicle is parked in a secure compound or locked garage.
Damage caused by defective or inadequate packaging, because it’s avoidable and a result of negligence.
If you leave a vehicle unlocked or unattended, then any resulting theft or loss won’t be covered. You need to securely lock all doors and take the keys with you.
Standard vehicle wear and tear won’t be covered by insurance. This is a cost of doing business.
Any damage that happens because of dangerous or reckless driving.
If there’s damage to your vehicle then it likely won’t be covered under a goods in transit policy as that is what a vehicle insurance policy covers.
If any damage occurs to a vehicle when it’s not involved in transporting goods, it won’t be covered. The only time it would be covered is when goods are being loaded or unloaded.
Livestock isn’t covered, because it would fall under a different kind of insurance.
Who offers goods in transit insurance?
There are lots of providers who offer goods in transit insurance. Some of the biggest ones include:
Tide. Policies are instant, flexible and start at £7 a month. They can be managed through the Tide app.
Aviva. The largest insurer in the UK, it offers policies tailored towards commercial freight and haulage fleets.
AXA. A major underwriter offering flexible goods in transit insurance for retail, trade and commercial vehicles.
Allianz. Provides specialist options for larger commercial fleets and complex logistics.
Hiscox. Good for high-value items, technology and bespoke business risks.
Simply Business. An insurance broker that compares quotes across a wide panel of commercial insurers.
How much does it cost?
You can get a policy for under £10 a month, but the cost will depend on your business and individual circumstances. Every policy is tailored to your needs, so the cost will vary.
The higher the amount you need to cover, the higher your policy will cost.
The cost is calculated by a range of factors, such as the total value of the goods you carry, your vehicle’s security rating, your overnight parking location, the distance you travel and your driving history.
How to choose the right policy
To choose the right policy, you need to work out exactly what your business needs or you could end up paying for something that doesn’t give you the cover you need.
You need to determine if you’re transporting goods that you own or goods that are owned by the customer. In some cases you might need both.
You also need to decide on the maximum level of cover you’ll need. Don’t base this on an average value of the goods you carry. Instead, work out what the maximum value is that you carry, even if it only happens occasionally. Then get enough cover for that amount.
Policies will state the level of security required for it to be valid, so make sure you can do this, especially in terms of overnight parking.
Bottom line
Goods in transit insurance gives you a financial safety net if you’re in the business of moving goods. To get the right coverage, calculate your single highest load value, verify your overnight parking security and ensure your specific cargo types aren’t hidden in the policy’s exclusion list.
Every provider and policy is different, so make sure you find the one that works best for your needs.
Insurance is there to protect you when something goes wrong, so make sure to compare your options and choose a policy that will give you the right coverage for your needs.
Frequently asked questions
Every policy is different, but as a general rule, goods in transit insurance covers general retail and e-commerce stocks, parcels, packages, letters, household belongings, furniture, building supplies and commercial equipment.
There isn't a maximum amount you can insure for as that will depend on your industry. The important thing is to have the right amount of cover for the value of the goods you need it for.
Limits are flexible. Providers like Tide offer standard online limits up to £20,000 per load, while specialised brokers such as Simply Business or AXA can arrange bespoke policies covering £100,000+ for large freight operators.
Overnight theft, damage caused by defective or inadequate packaging, leaving a vehicle unlocked or unattended, vehicle wear and tear and damage because of reckless driving are among the things that won't be covered by goods in transit insurance.
Generally, the cover is only for domestic use. However, some providers do allow international use. It depends on the policy and what you choose.
Goods lost in transit are usually covered under a goods in transit business insurance policy. However, the process to claim will typically require notifying the insurer immediately and filing a police report. This is to prevent fraudulent claims.
Yes, it's possible. But it's unlikely with a basic policy. Instead you'll need to find a specialist policy that comes with strict rules. And of course the premiums will be a lot higher than a standard policy.
Normally goods aren't covered if they're delayed. However, it is possible to get specific add-ons included in your policy, such as for perishable goods or costs incurred for late deliveries. It's important to read the fine print so you're clear what will be covered.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables is provided by Defaqto. In other cases, Finder has sourced data directly from providers.
Jason is a writer and editor. He worked as a senior subeditor for Finder for 5 years and in that time became familiar with a wide range of financial products and services. Before that, he worked for Australian Associated Press. He has a BA from Macquarie University in Australia. Jason loves to help other people find new ways to save money.
See full bio
Read out review to find out all you need to know about Superscript’s business insurance cover, including its pros and cons and whether it’s right for your business.
Advertiser disclosure
Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Finder compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
