Goods in transit insurance can protect business goods or customer property while transported, subject to policy limits, conditions and exclusions.
Goods in transit are items being moved from one place to another for business purposes. This may include stock, materials, customer orders or property that belongs to someone else.
Goods in transit insurance can cover these items if they are lost, stolen or damaged during the journey. Depending on the policy, cover may also apply while goods are being loaded, unloaded or stored for a short time during the trip.
Depending on the policy, goods may be covered when carried in your own vehicle or by an approved carrier. This goods in transit insurance guide gives examples of journeys and transport methods that may be covered.
Goods in transit cover and van insurance protect different things.
Van insurance covers motor liabilities and the insured use of the van. Depending on the level selected, it may also cover damage to or theft of the van. Goods in transit insurance covers the load being carried.
You should not assume that a standard van policy will pay for goods that are lost, stolen or damaged. You may need to arrange separate cover or add it as an option, depending on the insurer.
Motor insurance is a legal requirement in the UK. Third-party cover is the minimum required by law. Goods in transit insurance is generally optional, although a customer, employer or business contract may require it. You can read more about the legal rules on vehicle insurance on GOV.UK.
Your motor policy must match the work you do.
Carrying your own tools, stock or materials is different from being paid to carry or deliver goods that belong to someone else.
Courier, parcel and food delivery work may need a motor policy that permits carriage of goods for hire and reward. This means being paid to carry or deliver goods owned by another person or business. The wording and class of use can vary by insurer.
Goods in transit insurance does not change the use permitted by the motor policy. Take reasonable care to answer the insurer’s questions about how the van will be used, and check that the policy permits the work before starting delivery or courier activity.
Depending on the policy, cover may apply to goods carried:
The amount an insurer will pay can be limited for each vehicle, load, item, event or claim. Some policies only cover journeys within the UK. Others may cover a wider area.
Businesses that import or export goods may need broader cargo cover. The right option will depend on where the goods travel and who is responsible for them.
Make sure the policy describes the type of goods you carry. The cover limit should reflect the highest value you may carry at one time, rather than your average load.
You should also check:
Theft cover may have strict conditions. For example, the van may need to be locked, the keys removed and any fitted alarm switched on when it is unattended.
Overnight theft may only be covered when the vehicle is kept in an approved place. The exact rules depend on the policy, so check the wording, schedule and endorsements.
Exclusions vary by insurer and policy. They can include:
Money, jewellery, artwork, documents and other high-value items may also be excluded or subject to lower limits. Tools may need separate tool cover.
Always read the policy wording, schedule and endorsements together. These documents set out the cover, limits, excesses and conditions that apply.
Report the loss or damage as soon as possible and follow the claim process set out in your policy.
Keep invoices, delivery notes, photographs and an itemised record of the load. These can help show what was being carried, who owned it and how much it was worth.
Where a carrier was involved, you may also need to report the loss to the carrier within a set time. Check the policy and the carrier’s terms.
We may be able to consider a range of business uses, including some courier and delivery work, depending on the full details and the insurers available through our panel.
Tell us what you carry, who owns the goods, how often you make deliveries and whether you are paid to carry property for other people.
We arrange van insurance through insurers on our panel; we do not underwrite the policies. The cover available, price and acceptance will depend on the insurer and your full details.
Goods in transit insurance or tool cover may need to be arranged separately. A van insurance quote does not mean that either type of cover is automatically included.
