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Worried About International Shipping? Find The Right Goods In Transit Insurance For You

By Darragh Timlin on June 24th, 2022

Shipping goods overseas can be a risky business. Goods in transit insurance, protects your cargo against the risks your stock will face on an international journey, so being insured is essential.

However it doesn’t provide full protection, so you may need additional cover in the form of other types of insurance.

Whether you are a haulier with a fleet of vehicles, shipping your personal effects across borders or shipping anything else internationally, you need to find the goods in transit insurance that is right for you and covers you against most, if not all of, the likely risks.

What is international goods in transit insurance?

International goods in transit insurance is designed to protect your goods throughout international shipping, whether it is transported by air, sea or land, or a combination of all these modes of transport.

It can be taken out by an individual such as if you are moving your personal effects from one country to another yourself. It is also necessary for professional hauliers and other transport professionals who may need to ship internationally on behalf of customers or clients.

You can choose a one off transit policy to simply cover one journey of goods or take out annual cover, if international shipping is a regular part of your business operation.

What can be covered under goods in transit insurance?

Goods in transit insurance covers your goods from the loading stage right through to unloading at the destination as well as any intermediate warehouses along the way where your shipment may need to be stored and then reloaded. You are also covered from risk of theft should your truck need to make a stopover.

These points along the journey of the shipment create the greatest risk for damage and theft, so it is extremely important to be covered. Goods in transit insurance fully protects you against theft, loss or damage to your property.

Public liability insurance is also important. Public liability insurance protects you if a third party is injured or suffers damage because of your transportation such as if part of the cargo falls and damages someone or somebody’s property.

Just about any type of goods can be covered under goods in transit insurance. So whether you are transporting race horses, personal effects, expensive high ticket items, antiques, food stuffs, documents or machinery, you can insure them under this policy.

Goods in transit insurance is not only applicable to international shipping. You need this insurance in place if your work requires you to transport goods around the UK.

Essentially, goods in transit insurance protects you from:

  • Theft while the cargo is in transit
  • Damage caused by accidents during transit
  • Loss during transit
  • Damage caused during transit

Goods in transit and public liability insurance provide an array of protection from the risks of third party claims against you, such as if your actions cause damage or injury to the public.

Do I Need Different Insurance for Marine Cargo & Air Freight?

Most insurance companies offer goods in transit insurance combined with marine cargo Insurance for international freight because in most cases goods in transit insurance is not enough to cover the risks of international transport.

Despite the name, marine cargo insurance covers you for all modes of transport including airfreight and transportation by rail, road and canal.

Marine cargo insurance covers you against extra liabilities such as piracy – a major threat if you are shipping to some countries across the world.

It also protects you from risks such as strikes and violence. If you are shipping to a war zone or dangerous area such as Afghanistan, Iraq or Ukraine, marine cargo insurance protects your cargo in the event of an air crash or disaster at sea. It offers protection against damage incurred throughout the voyage or air journey and guards against your cargo being abandoned or left overseas.

Some marine cargo insurance companies insure you against demurrage – when the cargo is left on the quay and incurs storage costs. It may protect you against a Force Majeure situation when cargo or containers are lost or abandoned.

If you are carrying bonded goods that require storage in bonded warehouses it covers you for this additional expense, should you need this service such as in the case of a road crash or breakdown.

Marine cargo insurance provides additional protection to International goods in transit insurance so is a necessary requirement for most operators.

Is Goods in Transit Insurance a Legal Requirement?

Goods in transit insurance is not a legal requirement but you will find that most contractors will not work with you if you fail to have goods in transit insurance in place.

If your business requires that you transport other people’s property, you need the cover of goods in transit insurance to protect their property as well as your own reputation and your business.

All couriers, hauliers, removal companies and delivery companies need goods in transit insurance in order to operate safely, both throughout the UK, and when shipping abroad.

When you are shipping overseas, most insurance providers add on marine cargo insurance as an additional layer of protection.

In conclusion

International shipping can be a complex area of insurance. It needs to cover against all potential risks and these are generally increased by the addition of sea or air travel. This means most insurers offer a package of goods incorporating Transit Insurance with Marine Cargo Insurance and Public Liability Insurance as well.

When there is an international disaster or local conditions such as strikes or violence make transportation dangerous, you need to ensure that your cargo is protected. In addition theft and damage which can happen anywhere, can be increasingly complicated if it happens abroad.

If you are worried about international shipping, you need to find the transit insurance that is right for you.  Cover can vary and if you are selling abroad you will need a specialist to ensure that you are covered for every stage of the journey or you could risk losing your valuable cargo as well as ruining your business and your reputation. Looking for ways to reduce your business insurance premiums? Our risk management specialists at Brisco Business can assist you.

Darragh Timlin

With over 25 years’ experience, Darragh is an expert in all things insurance. Starting his career in commercial property underwriting, Darragh has worked for a number of global insurers and is now Managing Director of Brisco Business, part of the wider Henry Seymour Group.

All articles by Darragh Timlin

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