Transit insurance only applies to goods transported over land. This coverage can be purchased by the owner of the goods being transported, or the company hired to transport the goods. For this reason, it is important to check whether the business transporting your goods is well covered. The goods covered by transit insurance can be raw materials, manufactured goods, packaging material, or goods owned by someone else. Other than offering the policyholder indemnity from damage or loss, the insurance coverage also covers other related expenses such as incidental storage, and alternative accommodation expenses.

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1. Truck Cargo Policies :

These cover theft whilst a vehicle is unattended, or damage to the goods due to collisions or movement.

2. Marine Policies :

This policy is applicable to sea and air freight and cover loading/unloading, problems with the vessel or airplane, weather issues, etc. Specific types of policy will be chosen according to your commercial situation.

3. Open Cargo or Open Cover policies :

This is a very common arrangement is ideal for regular importers or exporters. The policy is for an agreed timescale or total value, or both. So if, say, you expect to export £1m of goods in the next 12 months, you can cover that value and the insurer does not need to know when or where the goods are moving.

4. Voyage policies :

Irregular traders may opt for specific cover with a policy that sets out the places of origin and destination (not normally the duration, which can vary). Once the goods arrive safely the policy expires and you do it all again the next time around.

5. Contingent Cargo policies :

This is rather more specialist if you think there is an unacceptable risk that your counterparty may not accept liability or refuse to accept delivery in the event of there being damage, then you might take out a secondary insurance of this kind that kicks in if the primary cover fails to achieve your objective.

Typical coverage

Goods in transit insurance is not only for international, cargo shipping, and may also be subscribed by any company which needs to have goods shipped from a supplier, even is this supplier is just a few miles away. Typical coverage usually includes:

  1. Theft Whilst In Transit.
  2. Damage Caused By Perils During Transit.
  3. Loss Whilst In Transit.
  4. Damage Caused During Transit.
  5. Shipment Delay.
  6. Cost, Insurance and Freight (CIF) means the seller pays costs, freight and insurance against the buyer's risk of loss or damage in transit to destination.

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