Goods in transit insurance can secure your products that are in transit if something tragic happens to them. This plan is for you if your firm includes the road transportation of substantial amounts of goods.
Such enterprises frequently carry substantial risks since expensive commodities are vulnerable to theft, accident, and fire damage.
Distribution firms, corporate entities, and any business owner involved in the transportation of big quantities of products ought to take into account the Goods-in-Transit cover.
Do you frequently transport objects between jobs or deliver goods? See how goods in transit insurance can provide you with security if something occurs to the cargo your vehicle is transporting.
What is Goods in transit insurance?
Insurance for goods in transit (GIT) provides coverage if any products belonging to you or a customer are stolen, lost, or destroyed while being transported from one location to another. For instance, moving them from a factory or workshop to a store, a place of business, or a private residence.
It does not cover the items before you leave or after you have delivered them. But, it only covers the contents of your vehicle while you transport them. It is supplementary coverage and does not take the place of your van insurance policy, which is law requires to cover the actual vehicle.
Who needs goods in transit insurance?
This type of insurance coverage is crucial for haulage firms, moving companies, and courier services.
If you deliver purchased items, such as operating an online store, goods in transit insurance can help safeguard items as they travel to the buyer. Additionally, it can pay your expenses if you did not deliver the goods.
If you’re transferring a business location, goods in transit insurance are particularly crucial. It can protect your belongings and machinery from harm and loss while in transit. Verify that your moving company has insured them and that the level of coverage is suitable for your move.
Remember that the carrier’s insurance is intended to safeguard their business, not yours, if your items are being carried. Typically, they did not build standard policies to manage more intricate or unusual scenarios. In your contract with the carrier, you might want to specify how you want your them to insure your goods.
What does goods in transit insurance cover?
When goods are moving and “in your custody and control,” which means you are responsible for their safety and security, goods-in-transit insurance often cover them.
To determine when the coverage begins and ends precisely, it is best to review the policy terms. Even in storage right before transit, it’s possible that items need extra protection.
Insurance for goods in transit frequently provides coverage for:
- Loss
- Theft
- Accidental damage during transportation
- Damage done during transit, loading, or unloading.
Damage may result from several things, such as weather conditions, pest infestations, or even just an accident, such as anything dropping during unloading or off the moving vehicle. We advise you check your policy once more, especially if you carry fragile things.
You might obtain your coverage as an add-on to your auto insurance policy or as a component of a bundle of commercial insurance policies they created to safeguard your company from various hazards. Alternatively, you might need separate speciality coverage depending on the insurance company you select.
How do you lower the cost of your goods in transit insurance?
Several things will affect the price of your goods in transit insurance. However, there are steps you can take to reduce the cost, such as:
- Increasing the security of your car to lower the danger of theft
- Correctly estimating the value of the items you’re transporting. Underestimating could cause insufficient coverage, while overestimating could cause higher rates.
- Changing to a black box policy. If you can show that you’re a safe driver who is less likely not to cause an accident, several insurance companies will give you a discount.
Types of Good in Transit Insurance
Cover for goods in transit insurance is of two types, namely:
1. All risks
Because it covers all the risks we have mentioned, it offers broad coverage. Coverage begins as soon as they load the cargo onto the transit vehicle and continues until they unload at the destination. The geographical limit is any place in Nigeria, and the mode of transportation is either road or rail.
2. Restricted cover
They only cover the danger of theft after an accident, collision, or overturning of the conveying vehicle anywhere in Nigeria under this limited coverage.
Underwriting Considerations
When examining the proposals for this sort of business, you should consider the following details, among others:
- The kind of goods involved, whether they are owned or not
- Means of transportation
- The required distance
- Agreement to Hire or Contract
- The anticipated yearly carrying
- Kind of cars that will be used, whether they are owned or rented
- The Agreement to Hire or Contract
- The anticipated yearly carrying
- Maximum amount that any one person may carry
- History of insurance and claims
- If the proposer is an individual or corporate entity, how long have they been in the haulage business.
Since this will serve as the foundation for the contract, you should then fill out a proposal form.
Frequently Asked Questions
Does goods in transit insurance cover goods left in the vehicle overnight?
Generally speaking, the answer is yes, as long as the car is locked and parked safely. But you should check the details of your specific insurance. Some policies might stipulate that the car must always be fully manned.
Does goods in transit insurance cover items I store in a depot?
No, it only covers products that are in transit, as the name would imply. You’ll need business contents insurance to protect the products in a depot or warehouse.
Am I covered for loading and unloading goods?
Maybe. You may be covered for loading and unloading under certain goods in transit insurance policies, but you should review the details of your policy. When loading and unloading, you might need to get additional public liability insurance to protect against injury to bystanders or damage to their property.
Conclusion
If you have been second-guessing the actual meaning of Goods in Transit (GIT) insurance. We believe that this post has clarified it well enough. Ultimately, with the Goods in Transit insurance you shouldn’t worry about the risk of loss or damage in the movement of your goods from one place to the other.