A guide to understanding goods in transit insurance

If your a transporter or business person and materials or stock are an essential asset to your business, they must be protected during transit. A good Goods in Transit Insurance policy does this for your, insuring you against loss, destruction, damage or theft when your goods are on the move. 

You can take this insurance out for goods being distributed in your own vehicle or by a third-party carrier. Policies often specify the means of transport to be used and Goods in Transit insurance serves to protect the long term security of your business.

A typical Goods in Transit insurance policy will include loss of goods during transit, theft of goods during transit, damage caused by accidents during transit, damage caused due to transit and loss of earnings cover caused by delays in transit.

It is also important to understand the type of vehicles covered by Goods in Transit insurance policy. If the chances of you storing your goods in your vehicle overnight are very high then you must check whether this is covered within your policy. Goods In Transit policies can vary from one insurance provider to another. Some providers may offer overnight cover as standard, others may provide it as a paid add-on while others may decide not to offer it due to the risks involved. 

If you are looking for a Good in Transit policy it is also important to know if your provider covers multiple vehicles with just one policy.  The good thing is that most providers do this and in many cases might offer you a discount when you do so. 

Before you decide on a Good in Transit policy that’s suitable for your business, it is worth checking the special features that suit your precise circumstances. You should look for a quote that has been tailored to your individual business, and make sure to never cut corners on cover. Remember to always check with your insurer to see which features are optional and which are included as standard.

Any business person should understand that without insurance you have only the minimum protection for your goods because freight forwarders and carriers typically have limited liability in the event of loss, or damage or delay. 

Many events can occur during transit that could result in the loss of your money if you’re uninsured. For example, your transporter may be involved in an accident whereby your goods are destroyed, or your goods might be stolen. The result can be loss of profits, productivity and buyer goodwill. You can minimise the impact of such incidents on your business by getting a proper Good In Transit insurance policy. 

Always remember that an insurance policy is and should be an important part of your financial plan. Contact Leadway Insurance brokers to learn more on how your business can benefit from a Goods In Transit Policy. 

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