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Haulage and goods in transit
Goods in transit insurance covers goods while they are carried by road, either your own stock or goods you carry for customers under contract. It matters because one lost load can exceed a year's profit, and policy conditions decide whether the claim is paid.
Part of: Haulage insurance
In short
Goods in transit (GIT) insurance covers loss of or damage to goods while they are loaded, carried and unloaded. Hauliers and couriers usually buy it on a carrier's liability basis, which pays what they are legally liable for under their conditions of carriage or the CMR Convention, while businesses moving their own stock buy all risks cover. Limits are commonly set per vehicle and sometimes per kilo. The conditions that most often defeat claims are unattended vehicle and overnight parking rules, restrictions on high-value goods and late notification. Cover is always subject to the insurer's acceptance and the policy terms.
Goods in transit (GIT) insurance responds to physical loss of or damage to goods while they are being moved by road. Typical causes are theft, fire, collision or overturning, and, depending on the wording, loading and unloading. It does not cover the vehicle itself, which sits under the motor policy, and it is not the same as cargo insurance bought by the owner of goods moving by sea or air.
There are two main bases, and buying the wrong one is a common mistake.
| Basis | Usually bought by | What it pays | How limits are usually set |
|---|---|---|---|
| Carrier's liability (legal liability) | Hauliers, couriers, removers and others carrying goods for customers | What the carrier is legally liable to pay the goods owner, under its conditions of carriage or the CMR Convention | Per vehicle and per consignment, often aligned with the contract limit per tonne or per kilo |
| All risks (own goods) | Manufacturers, wholesalers and trades carrying their own stock or tools | The value of the owner's goods lost or damaged, whether or not anyone was at fault | Per vehicle and in total for the year, commonly on cost or invoice value |
A carrier's liability policy usually pays no more than the carrier owes, so if the contract caps liability the customer's own cover picks up the rest. Our goods in transit definition gives the short version.
On domestic UK journeys a haulier's liability is mainly a matter of contract. Many hauliers trade on published trade terms. The Road Haulage Association says its Conditions of Carriage (2024) set a limit of £1,300 per tonne on the gross weight of goods lost, wrongly delivered or damaged, unless the customer agrees otherwise, and that use is restricted to RHA members. Terms of this kind protect a haulier when they are properly incorporated into the contract before it is made. Our guide to conditions of carriage and haulier liability explains how.
Limitation clauses can be challenged. Under section 11 of the Unfair Contract Terms Act 1977 a term must be fair and reasonable in the circumstances known when the contract was made. Where liability is limited to a specified sum, the court looks at the resources available to meet the liability and how far it was open to the party to cover itself by insurance, and the party relying on the term has to show it is reasonable. A haulier with no incorporated terms may face a claim for full value.
Where the place of taking over the goods and the place of delivery are in two different countries, at least one of them a contracting country, the CMR Convention applies to the contract of carriage by road for reward. In the UK it has the force of law through the Carriage of Goods by Road Act 1965. Under Article 23 compensation for loss is capped at 8.33 units of account (Special Drawing Rights) per kilogram of gross weight short, plus a refund of carriage charges and customs duties. Under Article 29 the carrier cannot rely on that cap where the damage was caused by wilful misconduct.
A domestic GIT policy may not extend to CMR liability, so international work usually needs CMR cover written into the policy with the right territorial limits. See CMR Convention liability for international haulage for the detail.
GIT limits are commonly set per vehicle or per load, sometimes with a lower limit for any one consignment or for goods the insurer treats as attractive to thieves, such as alcohol, tobacco, electronics, pharmaceuticals and metals. The policy then pays up to the limit and no further.
Illustrative: a haulier with a per vehicle limit set years ago takes a full load of consumer electronics for a new customer. The load is worth well over the limit, and the haulier has accepted the customer's terms with liability for full value. If the trailer is stolen, the policy pays to its limit and the haulier carries the difference itself.
Points worth checking before you rely on a policy:
Security conditions are the most common reason a GIT theft claim is refused or reduced. Wordings commonly require that an unattended vehicle is locked, with keys removed from the cab and alarms or immobilisers set, and many restrict where a loaded vehicle may be left overnight, for example to a locked building, a secure compound or a parking site that meets a stated security standard.
Police data shows why insurers focus on parking. The National Vehicle Crime Intelligence Service (NaVCIS) reported, in its release on 2020 freight crime, that more than 70% of offences take place at unsafe or insecure locations. Our page on load theft and cargo crime insurance covers the common methods.
The Insurance Act 2015, section 11 stops an insurer relying on breach of certain risk-reducing terms if the insured shows the breach could not have increased the risk of the loss which actually occurred. It rarely helps where a load is stolen from a vehicle parked in breach of a parking condition, because that condition is aimed at exactly that risk. See terms not relevant to the actual loss.
Claims are won or lost on notice and evidence. Under Article 30 of CMR loss or damage that is not apparent must be notified in writing within seven days of delivery, Sundays and public holidays excepted, and a claim for delay needs a written reservation within 21 days. Under Article 32 the limitation period is one year, or three years for wilful misconduct. Domestic terms set their own notice periods, and policies have their own notification conditions.
Goods handed over to a fraudster posing as a genuine haulier may fall outside a GIT wording; depending on the policy, misappropriation cover or commercial crime insurance may be relevant. The transport cargo loss scenario shows how a claim unfolds.
Apex arranges haulage and goods in transit cover, including haulage insurance, cover for haulage firms and courier insurance. A broker reads each enquiry and comes back with options, with no fee for a quote, and cover is always subject to the insurer's acceptance and the policy terms. To quote we need your business activities, turnover, location and claims history, plus the goods you carry, the maximum value per vehicle, your conditions of carriage, where vehicles park overnight and whether you work outside the UK.
No law requires it for domestic haulage, unlike third-party motor insurance. In practice many customers, freight exchanges and contracts require hauliers to hold it, and a haulier without it carries any liability for lost or damaged goods itself.
Goods in transit insurance usually refers to road movements and is often bought by the carrier to cover its legal liability. Cargo insurance is usually bought by the owner of the goods, often for sea or air freight, and pays the value of the goods whatever the carrier's liability. Some businesses need both.
It depends on the wording. Many policies restrict or exclude theft from unattended vehicles overnight unless the vehicle is in a locked building, a secure compound or an approved secure parking site, and some require alarms or immobilisers to be set. Check the overnight condition before you plan a route.
Base the per vehicle limit on the highest value load you are likely to carry, not the average, and check it against your contracts. If you accept terms making you liable for the full value, the limit needs to reflect that. For international work, also allow for CMR liability per kilogram of gross weight.
Some policies cover loads you subcontract, often on condition that the subcontractor holds its own goods in transit cover and that you have checked its credentials. Others exclude subcontracted work. If you broker loads to other hauliers, tell the insurer and check the subcontracting conditions in writing.
Tell us what your business does, your turnover and any claims. A broker reads every enquiry and comes back with options. No fee for a quote. Or call 0117 325 0027.
Start a commercial enquiry Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information, not advice on your individual circumstances, and it does not guarantee that cover will be available or on what terms.
