Every business that sends goods by courier accepts some level of risk. Things get damaged. Parcels go missing. Vans are broken into. The question isn’t whether something can go wrong, it’s whether you’ll be covered when it does.
That’s where goods in transit insurance comes in. A lot of UK businesses aren’t entirely sure what it covers, who needs it, or whether their courier’s policy already protects them. This guide answers all of it.
What Goods in Transit Insurance Actually Is
Goods in transit insurance (sometimes called GIT insurance) is a type of cover that protects goods against loss, theft, and damage while they’re being transported. It applies from the moment goods are collected through to delivery, whether that’s by road, rail, air, or sea.
It’s separate from vehicle insurance. Your courier’s van insurance covers the vehicle. GIT insurance covers what’s inside it.
You can take out your own policy as the sender, or you can rely on cover your courier already holds. Many UK courier companies carry their own goods in transit insurance as part of their service, so the goods are protected while in their care. Cover limits and exclusions vary, though, so it’s always worth confirming what a policy actually includes before you hand anything over.
What a Goods in Transit Policy Covers
A standard goods in transit policy typically covers physical damage to goods during transport, theft from the vehicle, and damage caused during loading and unloading. Loss from accidents or road incidents is also usually included.
What isn’t covered is often just as important. Goods left in an unattended vehicle overnight, particularly outside a locked compound, are commonly excluded. The same applies to fragile items damaged because they weren’t adequately packaged, goods held at a warehouse or depot rather than actively in transit, and consignments above the policy’s declared value limit.
The exclusions matter. If you’re sending something fragile or expensive, standard cover may not stretch far enough. Some policies offer specialist extensions for high-value goods, electronics, or temperature-sensitive freight. Reading the small print before you book is always worth doing.
Do You Need Your Own Policy as a Sender?
There are two ways your goods can be covered when you send them by courier. You can rely on the courier’s own goods in transit insurance, or you can hold your own separate policy.
Most reputable UK couriers carry their own GIT insurance, covering your goods against loss, theft, and damage up to a specified limit while they’re in the courier’s care. Standard limits vary widely, though. If you’re regularly sending goods worth several thousand pounds per consignment, it’s worth checking whether the courier’s cover actually matches the value you’re putting at risk.
Your own policy makes sense if you send high-value goods regularly, if your goods fall into categories a courier’s standard policy might exclude, or if you want to claim directly without going through an intermediary. For most day-to-day business deliveries, confirming what your chosen courier’s cover includes is a good first step.
Goods in Transit Insurance vs Courier Insurance
These two types of cover are often mentioned in the same breath, but they’re quite different things.
Courier insurance is taken out by the courier company itself and covers the driver and vehicle for commercial use. In the UK, hire and reward insurance is a legal requirement for any driver carrying goods for payment. Without it, a courier isn’t legally permitted to operate commercially on UK roads.
Goods in transit insurance covers the cargo, not the courier or the vehicle. A courier can hold full vehicle cover and have no GIT cover at all. That would leave your goods entirely unprotected if the van were involved in an accident or broken into.
When choosing a courier, it’s worth asking directly: do they hold their own goods in transit insurance, what are the limits, and does the policy apply to your type of goods? A reliable courier will answer that question clearly.
What to Check Before Sending High-Value or Fragile Goods
Some goods need extra care before they leave your hands. Packaging matters more than most businesses plan for. Most policies include a clause requiring adequate packaging, and if goods are damaged because they weren’t properly protected, the insurer may decline the claim. For fragile items, appropriate cushioning and a sturdy outer carton aren’t optional.
If your goods are worth more than the courier’s standard policy limit, declare a higher value when you book. Most reputable couriers offer this option, usually at an extra cost. Standard per-consignment limits can be low for higher-value goods.
It’s also worth checking what’s excluded. Most policies won’t cover cash, precious metals, jewellery, perishables without specialist cover, or certain categories of electronics. If your goods fall into any of those categories, ask about a specific extension or take out your own policy that addresses them directly.
Keep records too. A purchase invoice or clear documentation of value is something you’ll need if a claim ever arises. Without it, the claims process becomes much harder.
How Choosing the Right Courier Reduces Your Risk
The most effective thing you can do to protect your goods doesn’t involve an insurance policy at all. It involves choosing a courier that cuts the risk from the start.
Shared van networks pass goods through multiple handlers, depot sorting systems, and split consignments. Every time goods change hands or are stacked alongside other customers’ parcels, the chance of damage or loss goes up. According to the Office for National Statistics, van theft is a persistent problem across the UK, with thousands of incidents recorded annually. The more handlers your goods pass through, the more exposure you have.
Dedicated vehicles work differently. Your goods are collected from you and driven directly to the destination. Nothing else goes in the vehicle. No depot stops, no repacking, no shared space with other consignments. That single-handling approach cuts physical risk throughout the journey, and live GPS tracking means you know exactly where your goods are at every point.
Flextro runs every delivery on a dedicated vehicle with full live tracking from collection to arrival. Whether you’re booking a same-day courier service, arranging an emergency delivery at short notice, or using pallet delivery for bulkier freight, your goods travel in a dedicated vehicle, direct from collection to destination, with no shared handling.
If your business sends goods on a regular schedule, a contract courier run gives you consistent handling, familiar drivers, and a predictable service that reduces exposure to the kind of handling errors that lead to insurance claims in the first place.
Frequently Asked Questions
Is goods in transit insurance a legal requirement for UK businesses?
No. Goods in transit insurance is not a legal requirement for UK businesses. Whether you’re sending goods via courier or running your own delivery operation, there’s no law that requires you to hold GIT cover. That said, many clients and logistics partners ask for proof of cover before working with couriers, and for businesses that send high-value goods regularly, it’s a practical safeguard worth having.
Does my courier’s policy cover my goods?
Many UK courier companies hold their own goods in transit insurance, which covers the goods while they’re in their care. Cover levels vary by courier, so it’s worth confirming what the per-consignment limit is and whether it applies to your type of goods before you book. For standard parcels and documents, most couriers’ cover is adequate. For high-value or unusual items, check directly before handing anything over.
What’s the difference between goods in transit insurance and courier insurance?
Courier insurance covers the driver and vehicle and is a legal requirement for anyone carrying goods commercially in the UK. Goods in transit insurance covers the cargo being transported. A courier can hold full vehicle cover without any GIT cover at all, which would leave your goods unprotected if the vehicle were involved in an accident or broken into. The two policies serve different purposes.
What happens if my goods are lost or damaged by a courier?
You would normally make a claim against the courier’s goods in transit policy if they hold one, or against your own separate cover. You’ll need to report the loss or damage as soon as possible and provide documentation of the goods’ value, such as a purchase invoice. If the courier disputes liability, the claim may need to go through their insurer or a formal dispute process.
Do I need my own goods in transit cover if I use a dedicated courier?
It depends on the value of what you’re sending and the extent of your courier’s existing cover. A reputable courier running dedicated vehicles will hold their own GIT insurance. If you’re sending goods worth more than the courier’s standard per-consignment limit, taking out additional cover is a sensible step. Always confirm the limit when you book, especially for high-value or fragile consignments.
What goods are usually excluded from a goods in transit policy?
Most standard policies exclude cash, precious metals, jewellery, and live animals. Perishable goods are typically excluded without specialist cover. Some policies have restrictions on high-value electronics above certain thresholds. Goods damaged due to inadequate packaging are also commonly excluded. If your goods fall into any of these categories, check whether a specific extension or separate policy is needed before you send.
The Bottom Line
Protecting your goods starts with knowing what cover is actually in place. Many UK businesses assume their courier’s policy covers everything, only to find the limits fall short when something goes wrong. The straightforward approach: ask your courier what their goods in transit insurance includes, check whether it covers the value you’re sending, and consider your own policy if there’s a gap.
For businesses that want to cut risk from the start, working with a courier that uses dedicated vehicles and live tracking takes a large part of the problem off the table. Get a quote from Flextro and find out how we keep your goods moving safely.