What is Goods in Transit Insurance and how can it help tradespeople?

One of the many types of business insurance, Goods in Transit insurance (GIT) is there to protect you. As a tradesperson, you’ll be responsible for sourcing materials and products for your customers, and GIT can support with that.

Before you’ve fitted a product or carried out the work, those “goods” are your responsibility.

Although 2023 saw the passing of a new law to help prevent equipment theft from vans, Goods in Transit insurance could be taken out to cover anything not covered by that legislation.

Sometimes called a transit insurance policy, you’ll likely be covered as long as the vehicle is locked and parked in a secure place.

What are the different types of Goods in Transit insurance?

Standard insurance for Goods in Transit includes theft, loss and damage caused by accidents during transit. That also includes potential damage caused during loading or unloading your van.

But there are “extra” types of Goods in Transit insurance that you may want to consider.

As a tradesperson you may also want to consider getting cover for

• Trailer (will not be covered by standard vehicle insurance)
• Transit items used to protect the goods (this could include ropes, straps, tarpaulin or fastenings)
• Personal property (such as sat nav or mobile)
• Customers’ property (products paid for but not installed)
• Hazardous items (such as glues, resins or industrial cleaning fluids)
• Storage (if you use a storage facility while scheduling upcoming jobs)
• Transporting goods abroad (in case you get really lucky with your work!)

The level of cover your business will need depends on what you’re carrying. If you’re getting products imported from abroad, you’ll also need to check their Goods in Transit insurance rules as well.

Different levels of cover also exist because things are sometimes carried under particular contractual conditions or international rules.

Do you need Goods in Transit insurance by law?

As with many types of insurance, GIT is not a legal requirement in the UK. However, any business offering courier services, removal services or installing purchased goods might like to consider it. That includes products that you’re fitting for a customer as a tradesperson.

Your business is responsible for your customer’s property, equipment or goods while they’re in your possession. That means that some customers or clients might insist that you have it in place, for extra peace of mind.

While you aren’t required by UK law to have Goods in Transit insurance in place, if anything is damaged or goes missing, you could potentially find yourself out of pocket.

What is covered by the transit insurance policy?

When things are lost, stolen or damaged in transit, it can help to have Goods in Transit cover in place. It means that if your customer is expecting you to fit a product and it goes astray, you may be able to recover the cost.

National and international haulage companies are subject to delays, and that can have a knock on effect on your customer, as shown by the Suez Canal obstruction in 2021.

Goods in Transit insurance can also help when items are mislabelled, signed for by the wrong person or even delivered to the wrong address. If a delivery can’t be made at a specified time, having the right insurance could allow you to claim for the cost to the business.

You’ll always need to check your policy documents for details, as they will vary from insurer to insurer. However, all insurers will agree that the vehicle needs to be secure, as in locked and parked in a secure place.

What isn’t covered?

Like the list of things that are covered, tradespeople will need to check what is not. Different insurance providers will have different exclusions, and some will be more relevant to your business than others.

Generally, the things not covered are:

• Dangerous goods, livestock, or high-risk goods such as money
• Hazardous goods that require special labelling by law
• Theft from unattended vehicles without adequate security
• Confiscation by the police or other government body
• Shortage in weight
• Defective or insufficient packaging
• Variation of temperature (such as refrigeration unit)
• Transportation in vehicles over 7.5 tonnes

While all policies tend to stick to the same types of exclusions, some will also include damage that comes from dangerous driving. When goods and products are mishandled before they get fitted, that responsibility lies with you or your employees.

It is also important to remember that your van or work vehicle itself is also not covered by GIT. You will still need appropriate car or van insurance, and as a tradesperson, you might want to consider cover for your tools as well.

What’s the difference between GIT and Courier insurance?

The main difference is that Goods in Transit refers to the protection of the items you are transporting whilst Courier refers to a specific type of vehicle insurance (sometimes referred to as ‘Hire and Reward’ insurance).

Courier van policies can vary, depending on the different insurance providers. Some policies may include items being locked in the van overnight. A comprehensive Courier policy might also provide a temporary replacement if your own vehicle is out of action.

However, as a tradesperson, you will be sourcing materials and products required for specific jobs, so you will likely need Goods in Transit, rather than Courier Insurance.

Checkatrade members can get insurance for less

Tradespeople can save money on their premiums as a Checkatrade member. Along with our lead generation and trade directory model, we’ve also secured partnerships to get our members exclusive discounts, such as 20% off the price of public liability insurance* through our partner Superscript. Log in to the member’s area to find out more!

Cover is specifically designed for businesses, tailor-made to your needs, and arranged in a simple and straightforward way. You also have the flexibility to add optional extra covers too, giving you complete peace of mind. Including when it comes to Goods in Transit.

As a result, it’s never been easier to get the right GIT insurance for your trade business, regardless of your profession.

Key takeaways

• There are many types of Goods in Transit insurance
• It covers products and goods before you have fitted them
• GIT insurance generally covers theft, loss or damage
• Every policy will have exclusions
• Not every policy will apply to your trade business
• You may need this insurance as well as other cover – such as public liability insurance

Content disclaimer

This content has been created for general information purposes and should not be taken as formal advice. Read our full disclaimer here. Enro Ltd t/a Superscript is authorised and regulated by the Financial Conduct Authority.

Individual cover purchased online is offered on a standardised, non-advised basis and is not bespoke. Terms, conditions and coverage limits are predetermined by the Underwriter. If you require bespoke coverage offered on an advised basis, please contact our in-house broking team.

* As you’d expect, terms and conditions apply.  The discount offer of 20% off Public Liability for Checkatrade Members (‘the Offer’) is only available to Checkatrade Members who are new Superscript customers. The Offer will be applied to your Superscript policy for a lifetime (applied continuously at renewal). You will be informed of any price changes in good time, prior to the anniversary of your policy. The Offer will not apply to cancellation fees, and cannot be retrospectively applied. In the event that you cancel your Superscript policy within the first 6 months of cover, we reserve the right to deduct, withhold or charge the total value of the Offer from any payments due to or from you.

To be eligible, you must have been directed from Covea or Checkatrade by clicking on the appropriate link or receiving an email directly. The Offer is not assignable, and will be automatically applied to your account by Superscript. It will be applied each month, regardless of annual or monthly payment option selection. There is no cash alternative. The Offer cannot be used in conjunction with any other Superscript offer, voucher or promotional benefit. The Offer is subject to eligibility requirements. We reserve the right to withdraw the Offer at any time. Terms and conditions are subject to change and you may not be informed.