Goods in transit insurance

A clear guide to cover while you deliver

Every day, goods worth more than £1.2 billion move across the UK. That volume brings real risk - theft from parked vans, accidental damage in sudden braking, or loss through misdelivery. In 2024, theft from UK delivery vehicles reached hundreds of millions of pounds, with London seeing a significant share. For many operators, the question is not if something will go wrong, but when.

Goods in transit insurance is designed to protect goods while they are being collected, transported, and delivered. It is not a legal requirement, but it is often required by clients, platforms, and logistics partners. Many contracts demand proof of cover before work starts. Where cover is in place, businesses can absorb a bad day without derailing cash flow or client relationships.

This guide explains what is typically covered, the limits to be aware of, and how claims generally work. You will see how different policy levels compare, what affects the price, and what to check before you buy. The aim is simple - clear, factual information so you can choose suitable protection that aligns with your operations and budget.

Insurance can offer real financial protection, but only when you understand what is covered - and where gaps might exist.

Small decisions on cover limits and security requirements can make a big difference to outcomes.

What is covered and how claims work

Most policies cover physical loss, theft, or damage to goods while in transit. This usually includes incidents during loading and unloading, damage from collisions or sudden stops, theft from a locked vehicle, and loss due to misdelivery in defined circumstances. Some policies extend to temporary storage during the normal course of transit, such as overnight holds in a secure depot.

Policies define what is not covered. Common exclusions include theft from an unattended and unlocked vehicle, poor or inadequate packaging, inherent defects in the goods, delays or loss of market, and prohibited or high-hazard items without specific endorsement. Temperature-sensitive goods may require proof of working refrigeration and temperature logs.

Claims usually follow a straightforward path. You notify the insurer quickly, document the incident, and provide evidence of the goods’ value and condition. For example, if parcels are stolen from a locked van overnight, the insurer may request police crime reference numbers, photos of forced entry, and proof of security devices. If a sofa is damaged during unloading, statements from the driver and customer plus delivery notes and images help speed settlement. Where negligence or breach of policy conditions occurs - for instance, doors left unlocked or goods left visible - claims may be reduced or declined.

Most policies pay up to a per-item and per-vehicle limit, sometimes with an overall limit per journey. Excesses apply. Agreeing realistic limits at the outset helps avoid underinsurance.

Who needs it - and who may not

This cover is particularly useful for self-employed couriers, independent retailers offering local delivery, trades transporting materials or tools, removal and white-glove services, and fleet operators. The exposure increases in urban areas with higher theft rates, on multi-drop routes, and during peak retail periods such as Black Friday and Christmas.

If you rarely transport goods, or items are low value and easily replaceable, the cost-benefit may be limited. Some businesses rely on a third-party carrier’s liability instead, where the carrier accepts contractual responsibility. Even then, limits can be modest and evidence requirements strict. If your contracts stipulate goods in transit insurance, or you transport higher-value items like furniture and electronics, dedicated cover is often essential.

Cover levels and options at a glance

1. Basic - entry cover

   • Low per-item and per-vehicle limits suited to low-value loads.
   • Covers theft, loss, and accidental damage during collection, transit, and delivery.
   • Often excludes temperature-controlled goods and fragile or high-value items unless declared.
   • May be appropriate for occasional local deliveries with modest stock values.

2. Standard - balanced protection

   • Higher limits per item and vehicle, with cover for loading and unloading.
   • Includes theft from a locked vehicle and temporary storage during normal transit.
   • May require specific security - deadlocks, alarms, or parking in lit or secure areas.
   • Suitable for regular multi-drop couriers and small delivery firms.

3. Comprehensive - enhanced limits and extras

   • Generous limits, accidental damage, and broader misdelivery provisions.
   • Options for temperature-controlled goods with evidence of maintenance and logs.
   • May include debris removal, repacking costs, and driver assistance after incidents.
   • Well suited to fleets, high-value loads, and time-critical delivery operations.

4. Optional add-ons

   • International transit - extends cover to cross-border road, air, rail, or sea shipments.
   • High-value item endorsements - jewellery, electronics, art, or specialist equipment.
   • Consequential loss sub-limits - limited contribution towards client penalties or redelivery.
   • Public liability - protects against third-party injury or property damage during delivery.
   • Tools and stock left in vehicle overnight - subject to security conditions and location limits.

What it costs in the UK

Typical premiums vary by business profile, vehicle type, and the value of goods carried. Rising accident rates and repair costs have pushed commercial motor premiums higher, which can influence bundled packages. Many clients now expect evidence of adequate limits before work begins.

Key pricing drivers

Prices are indicative - insurers assess each risk individually.

Who can apply

Most UK-registered sole traders, partnerships, and limited companies involved in transporting goods can apply. Insurers typically ask for a description of your operations, average and maximum load values, delivery frequency, and the types of goods carried. Vehicle details, security features, storage locations, and driver profiles are also relevant. Some policies require evidence of deadlocks, alarms, or trackers, especially for overnight parking.

Common restrictions include prohibited items such as cash, precious metals, live animals, or hazardous goods without specific endorsement. Temperature-sensitive items may require maintenance records and temperature logs. You may be declined if you have a history of frequent claims, inadequate vehicle security, undeclared high-value goods, or if your operations fall outside the policy’s territorial limits.

From quote to claim - simple steps

1. Gather details - vehicles, routes, goods types, and load values.
2. Get quotes - compare limits, exclusions, excesses, and security conditions.
3. Choose cover - select limits that match your maximum exposure.
4. Provide documents - IDs, vehicle details, and claims history if requested.
5. Purchase policy - confirm start date and receive your documents.
6. Follow conditions - maintain security devices and accurate records.
7. Report incidents - notify promptly, supply evidence, and cooperate on assessment.

Balanced view - benefits and trade-offs

Check these details before you buy

Review the per-item, per-vehicle, and per-journey limits, and make sure they align with your highest expected load values. Confirm the excess and how it applies per claim. Read exclusions carefully - especially unattended vehicle conditions, overnight parking rules, and packaging requirements. Check if temporary storage during normal transit is included, and whether international deliveries are covered. Look at renewal pricing practices to avoid surprises after year one. Finally, keep purchase invoices, delivery notes, and security records to support any future claim.

Alternatives and related protection

1. Carrier’s liability insurance - if a third-party carrier is responsible, their policy may respond, but limits can be modest and evidence heavy.
2. Marine cargo insurance - broader cover for international and multi-modal shipments, often with higher limits.
3. Business contents and stock away from premises - protects goods held temporarily outside your main site.
4. Commercial van insurance - insures the vehicle itself, not the goods - complementary to goods in transit.
5. Public liability insurance - covers injury or property damage to third parties during deliveries.

FAQs

Q: Is goods in transit insurance a legal requirement in the UK? A: No. It is not legally required. However, many clients and courier platforms expect it as a contractual condition. Without it, you may lose work and face full responsibility for losses.

Q: What security is usually required for cover to apply? A: Insurers typically require locked vehicles, approved deadlocks, alarms, or trackers, and sensible overnight parking. Failing to meet these conditions can reduce or invalidate a claim.

Q: Does it cover misdelivery or lost parcels? A: Some policies cover loss from misdelivery within defined limits. Others exclude errors entirely. Check wording carefully, especially for signature requirements and proof of delivery processes.

Q: Are temperature-controlled goods covered? A: Often yes, but only with suitable endorsements. You may need maintenance records, temperature logs, and evidence of functioning equipment. Loss from equipment failure without proof may be excluded.

Q: How much cover should I buy? A: Base limits on your maximum load value, not the average. Include peak season volumes, multiple drops per route, and any contractual requirements for minimum limits.

Q: Will my van insurance cover the goods? A: Standard commercial motor policies insure the vehicle, not the cargo. Goods in transit insurance is a separate cover that specifically protects the items being transported.

What you can do next

Take stock of your typical and maximum load values, routes, and security arrangements. Compare several quotes with identical limits and excesses so you can see real price differences. If you move higher-value items or deliver during peak seasons, consider comprehensive limits and any necessary endorsements. Move at your own pace - the goal is suitable protection, not overspending.

Important information

This guide provides general information, not personal financial advice. Features, limits, and exclusions vary by insurer. Always read the policy wording, endorsements, and schedule carefully, and seek professional guidance if you are unsure about suitability.