For those who operate a fleet or commercial vehicle, there are many insurance needs to consider. Of course, it’s important to cover the vehicle itself, but what about the goods it can carry? Whether you’re transporting your own goods or you’re a carrier transporting goods for others, it’s important to consider what you would do if something were to happen to those goods.
what is the insurance of goods in transit?
In-transit goods insurance is designed to cover goods that are being transported by vehicle from one place to another. coverage applies when goods are transported in the course of business.
The insurance will normally cover the goods when they are in transit in the event of:
• loss • damage • theft
Coverage does not extend to items when they are stored in a warehouse or similar, only when they are in transit.
In-Transit Goods Insurance is designed to cover only the contents being transported, not the vehicle; it is usually required in addition to the insurance on the vehicle itself. Some commercial auto insurance may include an element of property in transit insurance, but you’ll need to check the details of the policy to be sure.
Who needs transit insurance?
If you use your vehicle to transport goods of any value, then transit goods insurance may be worth considering for your business. you can only operate one vehicle or you can have a fleet of vehicles.
In-transit goods insurance can be beneficial for your business if you are:
transport your own property, such as tools, equipment or materials associated with your business
carry goods for others, such as a courier or carrier. since the assets are not yours, the financial implications of something going wrong could be more significant
Some industries that may want to consider coverage include:
• couriers • movers • carriers and those in the transportation industry
If you’re transporting goods for others, some customers may expect you to be covered so they know their business and financial interests are covered if something were to happen to their items while they’re in transit.
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what types and levels of coverage are available?
The types and levels of coverage available will depend on several factors. As usual, before purchasing any insurance coverage, it’s important to read the policy wording to understand exactly what coverage you’re getting.
- the number of vehicles you drive if you own a single van transporting goods related to your own business, a commercial auto insurance policy may offer sufficient coverage. If you have more than one vehicle, you will most likely need to consider a separate goods in transit insurance policy
- the goods you are transporting the type and value of the goods you are transporting will also affect your insurance needs. Some policies will limit the amount of coverage offered or exclude certain items. Similarly, in order to work under the Road Haulage Association (RHA), the conditions of carriage companies must have insurance cover of £1300 per tonne, so areas like this are also worth knowing about .
what is the average cost of insurance for goods in transit?
The cost of goods in transit insurance will vary depending on the amount of coverage you need, which will be defined by a number of different areas, such as:
• the value of the goods you transport • how much cargo you transport • how often you transport goods
It’s worth discussing your needs with your insurer or broker at length to help ensure you get the right policy for your business and don’t find yourself in a position of being underinsured. something that could be devastating to your business if the worst were to happen.
at anthony jones we have a team specialized in transport and cargo insurance. Each client will have a dedicated auto expert who works to understand your business inside and out so they can ensure you have the right insurance solution. Call the team today on 020 8290 9099 or email us at [email protected].
