INSURANCE GUIDE Goods in Transit Insurance UK - cover for cargo in road transport |
TL;DR
- Goods in transit (GIT) insurance covers the goods being transported against loss, theft, and accidental damage while in transit by road.
- Carrier liability (what the haulier is legally responsible for) is limited under contract terms and statute - GIT provides cover for the cargo owner beyond these limited carrier obligations.
- CMR Convention limits the carrier liability on international road haulage to approximately 8.33 SDRs per kilogram of gross weight - typically far below cargo value.
- GIT is separate from the vehicle insurance (which covers the vehicle and third-party liability) and from courier H&R insurance (which covers the driver for hire and reward use).
- Annual GIT premiums are typically 0.05% to 0.25% of the annual insured cargo value depending on the goods type and route.
Last reviewed: June 2026
KEY FACTS | |
| What it covers | Loss, theft, and accidental damage to cargo while being transported by road |
| Carrier liability limitation | CMR Convention limits carrier liability to 8.33 SDRs per kg on international routes; BIFA/RHA conditions apply domestically |
| Who needs it | Cargo owners, importers, exporters, retailers, manufacturers, and hauliers who want to offer their customers cargo cover |
| CMR Convention | Convention on the Contract for the International Carriage of Goods by Road - limits carrier liability on international EU routes |
| Separate from vehicle insurance | Motor insurance covers the vehicle; GIT covers the cargo. Both are required for complete protection |
| Annual premium range | 0.05% to 0.25% of annual cargo value for standard road freight |
What Is Goods in Transit Insurance?
Goods in transit (GIT) insurance covers the physical goods, cargo, or merchandise being transported against loss, theft, and accidental damage while the goods are in transit. It is distinct from the motor insurance on the carrying vehicle (which covers third-party liability and damage to the vehicle itself) and from public liability insurance (which covers injury and property damage to third parties).
GIT is relevant to two main groups: cargo owners (importers, exporters, retailers, and manufacturers who want to protect the value of their goods while they are being transported by a third-party carrier); and hauliers (road haulage and logistics businesses who want to offer their customers protection for cargo in their care beyond the limited statutory and contractual carrier liability).
KEY FACTS
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Why GIT Is Needed Alongside Vehicle Insurance
Motor insurance on the carrying vehicle covers: damage to the vehicle itself; third-party liability (injury and property damage to others); and sometimes personal accident for the driver. It does not cover the cargo - the goods inside the vehicle are not covered by the vehicle insurance. If a van carrying GBP 20,000 of electronics is involved in an accident and the goods are destroyed, the motor insurance pays for the vehicle damage and any third-party claims. The cargo loss requires GIT insurance.
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Disclaimer: This guide is for general information only. Kael Tripton Ltd is not authorised or regulated by the FCA. Always verify details with an FCA-authorised insurer or broker before purchasing. |
Frequently Asked Questions
Does my van insurance cover the goods I am carrying?
No. Standard van or commercial vehicle insurance covers the vehicle and third-party liability. The goods being carried inside the vehicle require a separate goods in transit insurance policy. This is one of the most common misunderstandings in commercial road transport - always check the specific wording of your vehicle policy.
What is the CMR Convention and how does it limit my liability as a haulier?
The CMR Convention applies to international road freight within Europe. It limits the carrier legal liability for loss or damage to goods to 8.33 Special Drawing Rights (SDRs) per kilogram of gross weight, regardless of the actual value of the goods. In practice, this means a haulier is only legally obliged to pay approximately GBP 8-10 per kilogram for damaged cargo - far below the value of most commercial goods. GIT insurance can cover losses above this limit.
Does GIT cover all types of goods?
Standard GIT policies cover general merchandise transported by road. Some categories require specialist cover or attract higher premiums: high-value goods (electronics, jewellery, pharmaceuticals); temperature-controlled goods (fresh food, pharmaceuticals); hazardous materials (chemicals, flammable substances); cash and valuables; and antiques and art. Declare the specific goods types to the insurer when arranging cover.
What is the difference between all-risks GIT and named perils GIT?
All-risks GIT covers loss or damage from any accidental cause unless specifically excluded. Named perils GIT covers only the specific events listed in the policy (fire, theft, collision, etc.). All-risks provides broader protection and is the more common choice for most cargo owners. Named perils is cheaper but may leave gaps where the cause of loss is not one of the listed perils.
Does GIT cover goods left in an unattended vehicle overnight?
Many GIT policies exclude or limit cover for goods left in an unattended vehicle overnight. The specific security conditions in the policy (minimum requirements for locking the vehicle, use of demountable security containers, alarm requirements) must be met for overnight theft claims to be valid. Check the policy conditions carefully if overnight parking of loaded vehicles is part of your operations.
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