How do I decide what level of goods in transit insurance I need?
You need to arrange cover which meets the extent of your financial liability to your customer. In other words the amount you would become financial responsible to your customer for in the event of a loss.
This could be for the full value of the goods carried, this cover is known as `All Risks' or `Full Responsibility'. This cover is often arranged by carriers of lower value goods such as quarry materials, building construction materials, tipper work, also specialist carriers of high value goods such as Plant, Machinery, Cars, Boats, Portable Buildings etc.
The alternative is to adopt conditions of carriage such as RHA (Road Haulage Association) or FTA (Freight Transport Association) Conditions of carriage restrict your financial responsibility to your customer to an agreed amount per tonne. This protects you from unknowingly being underinsured as the actual value of goods is not relevant from the carrier’s point of view.
They are most often adopted by carriers of general goods within the UK.
For international movements of goods by road CMR cover applies, even if you are only involved in the UK leg of the journey.
