Goods In Transit Insurance
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What is goods in transit insurance?
Most businesses need to move goods from one geographical location to another and no matter how careful, accidents are inevitable. A motor vehicle insurance policy alone is not sufficient for vehicles driven for commercial purposes.
Accidents that occur with vehicles used for commercial purposes can lead to legal litigations no matter how harmless it may seem to you initially. In the United Kingdom, unexpected legal settlements and payout have led to a huge revenue loss in businesses hence the need for proper cover.
Is it necessary to have GIT insurance?
Goods-in-transit insurance is highly essential for businesses that transport goods from one location to another. Goods-in-transit insurance covers your business from any eventuality that might occur to the goods in the process of transporting or while they are being stored.
With goods in transit insurance, your mind will be at peace knowing that whatever financial burden that might want to come up won’t be your problem. It is advisable for a business to obtain this insurance for goods to be distributed in any kind of vehicle, be it a third-party carrier or a hired automobile.
This cover can be made to cover overseas transit and domestic transit. Policy details will specify the mode of conveyance that is covered. Postal services can also be covered.
Why do I need goods in transit insurance?
It is a kind of spiritual snobbery that makes business owners think they can do well without insurance. The risk is a fact of life, every decision made and every action taken in business carries with it a risk that things may not work out as we envisaged.
A major part of success in business is the ability to access the risk and weigh these risks against their potential rewards and manage these risks effectively hence the need for goods-in-transit insurance.
Categories of people that require it
Self-employed courier drivers:
Businesses of the Self-employed courier drivers will be more damaged in a situation of legal litigation due to the fragile nature of their businesses, the lack of structure and financial weakness. In most litigation you wouldn’t just be asked to refund the cost of goods but also to pay for the inconvenience.
Also, goods-in-transit insurance gives the customer some reason to trust you. It can be a unique selling point that will make all the difference in your business. It is then very important for businesses in this category to have a solid Goods-in-transit insurance policy.
Haulage vehicle owners:
The goods you are transporting is most likely not your own so the financial responsibility will be more severe than normal. Clients will expect you to have some sorts of insurance cover for their valuables, it is, therefore, important to invest in your reputation.
Without goods-in-transit insurance, you may find it impossible to secure any work. Haulage vehicle owners who value their businesses must invest in this insurance policy.
Marine cargo owners:
Marine cargo owners require some sort of goods-in-transit although in some insurance companies it is not called goods-in-transit insurance but marine cargo insurance. Legal litigations settlements on marine cargos are usually in millions of pounds hence the need for a comprehensive goods-in-transit insurance policy.
What type of goods in transit policy do I need?
The type of goods in transit insurance you need depends on the prevailing risks whilst transporting your goods in the course of business. A standard policy should cover movement in the United Kingdom, the Republic of Ireland, the Isle of Man and the Channel Islands including seas. A goods-in-transit policy should protect your business against damage in the process of transporting your goods, loss (during transportation), theft in the process of moving the goods, unusual delay (clarify with your insurer).
It is common knowledge in insurance that the insurer and the insurance policy-holder (person in which the insurance company has promised to pay the agreed financial benefit) must agree to the value of the goods and the vehicle that is used to convey the goods.
Note-; Most insurance companies will not cover your transit if it is detected that goods that were transported were spoilt as a result of bad packaging or due to the inferiority of the goods that were transported. It is your job to work on the quality of your goods and not that of the insurance company.
How much does it cost?
Good-in-transit insurance usually varies in price due to many reasons. This is because the premium price is determined by the level of exposure to risks. The higher the risk involved in a claim, the higher the price of the policy.
What determines the cost of the policy?
Areas you mostly cover
The most expensive area for your goods in transit insurance is West London, followed by east London, the central west London, fourth and fifth areas are Central East London and North London. While the cheapest areas would be, Galashiels in Scotland and Exeter coming in the second position.
Types of Goods in transit
Hazardous goods like acids and highly reactive chemicals can hike your cost of a premium, certain goods that are susceptible to theft can also increase the price of your premium.
NOTE: ensure you discuss extensively with your insurer on what is covered and what is not covered before you pay a premium.
Value of consignment
The average value of vehicle along with an estimate of the value of goods carried over the period of the insurance determines what you will pay for premium, the higher the value, the higher the premium.
Discounts are available for security measures such as vehicle fitted with trackers or immobilisers.
Tip: if you have more than one vehicle, it is usually cheaper to insure them all under a single policy.
NOTE: goods in transit policy does not