Why do I need Goods In Transit Insurance?
If your business transports, imports or exports finished goods, parts or raw materials, you need to consider what protection you need for loss or damage to them. Whether they are being moved by your own vehicle, haulier, parcel post/courier, by sea or air
What is Goods In Transit Insurance?
A goods-in-transit policy will protect you from:
- Theft (while in transit)
- Loss (while in transit)
- Damage caused by accidents during transit
- Damage caused during transit
- The consequences of any untoward delay (in some cases)
As with other forms of insurance, you and your provider will need to agree on how much the goods are valued at. If the goods are new then this shouldn’t be too much of a problem. Remember, this type of insurance does not protect you if you find the goods you have ordered or dispatched are inferior, below standard, or damaged through inappropriate packaging – this is not quality control.
There are two types of cover:
- Old-for-new – items are replaced at their current market value
- Indemnity cover – the insurance company will take into account general depreciation.
Be careful to check which type of cover the insurance company is proposing (obviously the former is a far better option), but it can be expensive. If you do purchase an old-for-new policy, make sure to value your contents at their replacement value, not at their actual value.