📦 Goods in Transit Insurance

Goods in Transit Insurance — Cover While Your Load Is on the Road

Protects goods being transported by road against loss, theft or damage — whether you're moving your own stock or carrying goods for other people for payment. Here's the difference that matters, and what insurers expect you to do to keep cover valid.

  • Covers theft, accidental damage, fire and vehicle overturning in transit
  • "Own goods" and "hire and reward" are different covers — check which you need
  • Security conditions (parking, tracking, overnight rules) are often strictly enforced
  • International hauliers should understand CMR liability limits
  • Standard policies exclude poor packing and inherent deterioration
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When Does Goods in Transit Respond?

Goods in transit cover protects the value of goods while they're being carried by road — from the moment of loading to final delivery.

💡 Two different covers, easily confused: "Own goods" cover protects goods you own that you're moving yourself — for example, a shop moving stock between premises. "Hire and reward" cover is for carrying other people's goods for payment — couriers, hauliers, removal firms. If you carry goods for clients, you need hire and reward cover specifically; own goods cover alone won't respond to a claim.

Liability Rules for UK & International Haulage

Two different sets of standard terms typically govern how much a haulier is liable for if goods are lost or damaged.

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CMR Convention

For international road haulage across Europe, the CMR Convention caps a carrier's liability at a set rate per kilogram of gross weight (measured in Special Drawing Rights), regardless of the goods' actual value — a limit worth understanding if you carry high-value, low-weight goods internationally.

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RHA Conditions of Carriage

Within the UK, many hauliers trade under the Road Haulage Association's standard Conditions of Carriage, which similarly cap liability per tonne — again, often well below the actual value of valuable or fragile cargo.

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Security conditions

Insurers frequently impose specific security requirements — tracking devices, approved overnight parking, or a rule against leaving a loaded vehicle unattended in a public place — and can decline a claim if these weren't followed.

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Common exclusions

Standard policies typically exclude inherent vice (natural deterioration of the goods themselves), inadequate or faulty packing, and sometimes losses from an unattended, unlocked vehicle.

⚠️ Check the liability gap: If you're relying on RHA or CMR liability limits rather than your own goods in transit policy, you may be significantly underinsured relative to the actual value of what you're carrying — particularly for small, high-value loads.

How Much Cover Do You Need?

The right limit depends on the value of goods you typically carry at any one time, per vehicle.

1️⃣

£10,000–£25,000

A common starting point for small vans carrying modest-value stock or parcels.

2️⃣

£25,000–£50,000

Typical for small hauliers and removal firms carrying higher-value or bulkier loads.

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£50,000–£100,000

Often needed for larger vehicles or valuable specialist cargo.

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£100,000+

Common for larger logistics operators or those regularly carrying high-value consignments.

What to Look for in Goods in Transit Cover

A few things worth checking before you buy, whichever UK insurer or broker you compare.

Hire and reward, if relevant

Confirm the policy explicitly includes hire and reward cover if you carry goods belonging to clients or customers — not just your own stock.

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Security warranties

Read the security conditions carefully — a breach (e.g. leaving a loaded vehicle unattended overnight against policy terms) can void a claim entirely.

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Named vs any driver

Check whether cover applies to any authorised driver or only specifically named drivers, particularly relevant if you use casual or agency drivers.

FCA authorisation

Before buying, confirm any insurer or broker is authorised and regulated by the Financial Conduct Authority — check the register at register.fca.org.uk.

🤝 We're finalising partnerships with FCA-authorised UK insurers so you can compare real quotes here soon. Check back shortly, or get in touch if you'd like to be notified when comparisons go live.

Frequently Asked Questions

No — if you only ever transport goods you own, standard own goods cover is usually sufficient. Hire and reward is specifically needed when you're paid to carry goods belonging to someone else, such as a courier or haulage business.
Often only under specific conditions — many policies require the vehicle to be locked, in an approved location, or fitted with tracking, and can decline a claim where a loaded vehicle was left unattended in breach of the security warranty.
The CMR Convention sets standard liability limits for international road haulage across Europe, capping what a carrier is liable for per kilogram of the consignment. If you carry high-value, low-weight goods internationally, this cap can leave a significant gap versus your own goods in transit cover.
Generally no — inadequate or faulty packing is a standard exclusion, since insurers expect goods to be packed appropriately for the mode of transport before the risk of transit damage is accepted.
No — commercial motor insurance covers the vehicle itself and third-party liability; goods in transit covers the value of the cargo being carried. Most operators need both, as one doesn't substitute for the other.
Many insurers offer cover scaled to occasional or seasonal use, but it's worth confirming this explicitly rather than assuming a standard annual policy will flex down — ask about short-term or usage-based options if transport is infrequent.

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