Your goods in transit insurance must cover the extent of your financial liability to your customer – in other words, the amount you would need to repay in the event of a loss.

GIT often covers the full value of the goods carried – known as ‘all risks’ or ‘full responsibility’ – and is often arranged by carriers of lower value goods, such as quarry materials and construction materials, as well as specialist carriers of high value goods such as plant, machinery, cars, boats, and portable buildings.

The alternative is to adopt conditions of carriage such as those set out by the RHA (Road Haulage Association) or FTA (Freight Transport Association). These restrict your financial responsibility to your customer to an agreed amount per tonne, and protect you from unknowingly being underinsured. This option is used by most carriers of general goods within the UK.

If goods are being transported internationally – even if you’re only involved in the UK leg of the journey – you will need CMR cover.