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Goods in Transit Insurance Explained

Goods in transit insurance (GIT insurance) pays for goods that are lost, stolen or damaged while a courier or haulier is carrying them. This guide from First Choice Transportation Ltd explains what it covers, what it costs a courier, how carrier liability works, and what our own cover of £20,000 per day means when you send with us.

Office: 020 8202 2008  ·  WhatsApp: 07507 612919

✓ Registered company 15276847   ✓ VAT registered   ✓ £20,000 goods in transit cover   ✓ £2m public liability   ✓ Open 24/7

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What Is Goods in Transit Insurance?

Goods in transit insurance is a policy held by the business moving the goods. It pays out if goods are lost, stolen or damaged from the moment they are collected until they are delivered, usually including loading and unloading.

It protects the goods, not people or property. Injury to someone, or damage to a customer’s premises during a delivery, falls under public liability insurance instead.

What Does It Cover, and What Is Usually Excluded

A typical policy covers:

  • theft of goods from the vehicle, including theft of the whole vehicle;
  • damage in a road accident, fire or flood;
  • damage while the goods are loaded or unloaded.

Policies often exclude, or limit, cover for:

  • goods that were badly packed by the sender;
  • theft from a vehicle left unlocked or unattended overnight without proper security;
  • high-value items such as cash, jewellery and electronics, unless declared and agreed;
  • perishable goods spoiled by delay or temperature;
  • indirect losses, such as lost profit or a missed deadline.

Every policy is different, so the terms of the courier you book are what count.

Goods in Transit Insurance for Couriers

Goods in transit insurance for couriers is usually set as a limit per load, per vehicle or per day, chosen to match the value of what the courier normally carries. A same day courier carrying documents and parts needs a different limit from a haulier moving full lorry loads of electronics.

When you book a courier, the questions that matter are: what is the limit per load or per day, what is excluded, and how long do you have to report a problem.

Goods in Transit Insurance Cost

For a courier, the goods in transit insurance cost depends on:

  • the limit per load, per vehicle or per day;
  • the type of goods carried, with electronics, alcohol and tobacco costing more;
  • the number and type of vehicles, and where they are kept overnight;
  • the drivers’ claims history and experience;
  • the excess the business agrees to pay on each claim.

For a customer, it is part of the courier’s price. You do not normally pay for it separately, unless you ask for extra cover above the courier’s limit.

Goods in Transit vs Public Liability Insurance

Goods in transitPublic liability
ProtectsThe goods being carriedOther people and their property
Example claimA parcel stolen from the vanA door frame damaged while carrying a sofa in
First Choice cover£20,000 per day£2 million

The two are often confused. A courier’s £2 million public liability cover does not mean your goods are insured to £2 million.

Carrier Liability: Who Pays If Goods Are Lost or Damaged

Carrier liability is what the courier agrees to pay under its terms when goods are lost or damaged in its care. It is set by the contract, not by the insurance policy, and the two usually match: the courier limits its liability to the cover it holds.

For road journeys from the UK into Europe, the CMR Convention sets a carrier’s liability by the weight of the goods unless a higher value is declared. For UK journeys, the courier’s own terms apply, so read them before booking anything valuable.

Goods in Transit Cover When You Send With First Choice

When you book with First Choice Transportation Ltd:

  • our goods in transit cover is £20,000 per day;
  • we hold £2 million public liability insurance;
  • if your goods are worth more than £20,000, tell us the value when you book;
  • report any damage or loss within 7 days of delivery;
  • the receiver signs a proof of delivery, which is sent to you.

See our courier prices, business courier services and licences and registrations, or get a quote.

Goods in Transit Insurance FAQ

No. UK law does not require couriers or hauliers to hold goods in transit insurance, unlike employers’ liability insurance, which most employers must have. In practice most business customers and many contracts ask for it, so a courier without it will struggle to win regular work. Always ask a courier what cover it holds before booking.

Only up to the courier’s cover and its terms. Most couriers limit what they pay per consignment, or per kilo, and some exclude certain goods. If your goods are worth more than the limit, declare the value before booking and ask whether extra cover is possible, or insure the goods yourself under your own policy.

Tell the courier in writing as soon as you find the problem, within the time limit in its terms. With First Choice Transportation that is within 7 days of delivery. Keep the packaging, take photos, and send the invoice or other proof of the goods’ value. Note any visible damage on the proof of delivery when you sign.

Tell us the value when you book. Our goods in transit cover is £20,000 per day, so for anything worth more, or several valuable jobs on the same day, you may want to arrange your own cover for the extra value before the goods travel. Call 020 8202 2008 to discuss it.

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