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What is goods in transit insurance and why do I need it

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what is goods in transit insurance and why do I need it?

If you're driving a vehicle for commercial reasons you could need more than a motor insurance policy. It's important that you've got cover that meets your business needs as well as your legal obligations, and one of the most important aspects to consider will be any goods that you carry.

what is goods in transit insurance?

Put simply, goods in transit insurance/cover will insure goods carried in your vehicle as part of your trading activities, covering both your own supplies (e.g. building materials) as well as other peoples (e.g. packages). With goods in transit insurance you will rest safe in the knowledge that should your goods be lost, stolen or damaged in any way whilst in transit you won't have to foot the bill (subject to the terms and conditions of the policy wording).

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why do I need goods in transit insurance?

If you use your vehicle for transporting goods then you will usually fall into one of the below classes of use:
> Carriage of own goods is using your van to and from work and are transporting business related goods such as your own tools.
> Haulage is needed if you are using your van whilst transporting goods for other parties, such as a courier.

Goods in transit cover is particularly important if you operate as a courier or work in the haulage industry. The goods you're transporting won't be your own so the financial implications could be even more severe than normal; it pays to be prepared.

Most clients will expect you to have some form of goods in transit protection in place, so it's important to invest for your reputation as well as anything else. If you're not adequately insured you may not be able to secure any work without some protection in place, you just need to consider the expense of the products you're carrying to see how vital this form of insurance can be.

TIP - make sure your quote covers what you need

If you have decided that goods in transit insurance is suitable for you then it's essential you get a policy that suits your precise circumstances. You should look for a quote that's been tailored to your individual business, and make sure to never cut corners on cover - it's better to be over insured than under insured, and if you think that you'll be carrying goods that total thousands of pounds make sure you tell your insurer that. If you don't have the right amount of cover you'll be held liable for the cost of any damage to goods that don't fit within your insurance policy limit, so seeking an adequate level of cover to suit your business is essential.