Goods in transit insurance covers your goods, tools, stock or materials against theft, loss and damage while they’re being loaded, transported or unloaded. Find out how to choose the right cover and how flexible finance can fill any gaps in your cash flow.
0
min read
Every day, goods are on the move – from couriers and lorries to tradespeople carrying materials. Things can easily go wrong in transit, and that’s where goods in transit insurance helps. It protects you against loss, damage, or theft so your business doesn’t take a hit.
Below, we’ll examine what’s included in this type of cover, who needs it, and the typical cost in the UK. We’ll also explain how it can be combined with public liability insurance and how flexible funding, such as our small business loans, can help if you need to pay for cover upfront.
If your work involves moving goods, materials, or equipment, goods in transit (GIT) insurance is pretty much essential. It protects against theft, loss, or damage while items are being loaded, transported, or unloaded.
Here are some of the main reasons to consider it:
Without this cover, you could be left on the hook, paying out of pocket for goods that aren’t even yours. And the money you spend to make things right, means less money for running things day to day.
Goods in transit insurance isn’t a legal requirement in the UK (only employer’s liability insurance is mandatory). However, many clients and logistics partners expect you to have it before they’ll work with you.
For example, if you subcontract delivery work or handle valuable items, customers may ask for proof of cover. It’s also worth checking your contracts – some specify that goods in transit insurance and public liability must both be in place before you start work.
Even if you’re not required by law, having this protection gives you peace of mind. Accidents, thefts, and losses happen, and replacing goods eats into your profits (if you’re uninsured).
The details vary by insurer, but in general, goods in transit insurance covers the value of goods if they’re lost, stolen, or damaged while being moved. That might include items you own, stock you’re delivering to a customer, or materials being taken to a job site.
When comparing providers, it’s worth reading the terms carefully. Each policy has its own limits, excesses, and exclusions, so always check what’s included before you buy.
Generally, no. Most insurance for goods in transit policies apply to items moved for business purposes only. If you’re transporting personal belongings or moving house, you’d need separate contents or removals insurance.
If you mix personal and business use of a vehicle, check the details with your insurer. Some may offer limited cover, while others might exclude non-business journeys entirely.
This insurance isn’t just for couriers or hauliers – it’s useful for anyone who moves goods as part of their work.
This includes:
Even if you only move items occasionally, the financial risk of damage or loss can outweigh the cost of cover (especially if the goods you’re moving are expensive).
If you use external carriers, you may still want your own temporary goods in transit insurance or an ongoing policy. While services like Royal Mail or Evri offer compensation for lost parcels, their limits are often low and depend on the type of service you choose.
Having your own policy gives you more control. You can claim directly from your insurer rather than relying on the courier’s terms, and it ensures higher-value items are properly protected.
The cost of goods in transit insurance in the UK can vary depending on what you transport and how often. Insurers calculate premiums based on a few key factors:
As a rough guide, smaller delivery drivers or tradespeople might pay from around £100 to £250 per year for basic cover, while larger logistics firms could pay several thousand pounds annually.
Adding cover for tools, vehicles, or subcontractors may increase the premium, but it also provides broader protection.
If you only need short-term cover, temporary goods in transit insurance can be a flexible option. This might suit seasonal workers or those with occasional delivery contracts.
Yes, and many insurers recommend it. Combining goods in transit public liability insurance simplifies your admin and can often reduce overall costs.
Public liability insurance/goods in transit policies are ideal for trades and service businesses that handle client property or work on-site. They protect you not just if goods are lost or damaged, but also if someone is injured or property is damaged as a result of your work.
Bundled policies often make sense for:
When comparing options, look for insurers that allow you to tailor limits for each type of cover so you’re not paying for protection you don’t need.
Insurance is vital, but paying for annual cover upfront can be tough when cash flow is tight. That’s where flexible funding can help.
Our small business loans let you borrow up to £1,000,000 with no early repayment fees. You can use it to pay for essential cover, manage seasonal fluctuations, or invest in vehicle or equipment upgrades. Repay early and you’ll only pay interest for the time you borrow – making it ideal for short-term needs.
If you want to stay protected without straining your budget, it could be a practical way to spread the cost of your insurance and other essential expenses.
Ready to protect your business and keep things moving? Find out how a small business loan from iwoca can help you cover costs and stay flexible when you need it most.
