Goods in Transit Insurance: What It Covers and Why It Matters

Understanding Goods in Transit Insurance

If you move goods for a living whether it is parcels, pallets, or products, what happens if something goes missing or gets damaged during the journey? That is where Goods in Transit (GIT) insurance steps in.

At Ratcliffes, we handle GIT cover both as part of our Courier & Light Haulage Insurance and through our broader Commercial Vehicle Insurance services. But what exactly does it cover, and who should consider it?

 

What Is Goods in Transit Insurance?

Goods in Transit Insurance protects the physical items you are transporting in your vehicle against theft, loss, or damage while they are in your care.

Whether you are delivering for clients or moving stock between warehouses, if the goods are in your van or lorry, this insurance is what helps protect your business.

It typically protects against:

• Theft from a locked vehicle

• Damage during loading, unloading, or in transit

• Loss due to vehicle accidents

• Misdelivery or non-delivery

Who Needs Goods in Transit Insurance?

This depends on what you are transporting and who owns it. You will likely need GIT cover if:

• You are a courier or light haulage operator carrying third-party goods

• You are a retailer or wholesaler moving your own stock between locations

• You are subcontracted to deliver items and your client requires proof of GIT cover

GIT vs Courier Insurance – What Is the Difference?

This is a common point of confusion.

There is no single policy called "Courier Insurance." Instead, it is a bundle of different insurance types commonly needed by courier and light haulage businesses. This bundle may include:

• Goods in Transit Insurance: Covers the items you are transporting against loss, damage, or theft while in your care.

• Public Liability Insurance: Protects you if a member of the public is injured or their property is damaged because of your work (for example, accidentally dropping a heavy parcel on someone’s foot).

• Employers' Liability Insurance: A legal requirement if you employ staff. It protects your business if an employee is injured or becomes ill due to their work.

• Hire and Reward Motor Insurance: Required to legally drive a vehicle while carrying goods for payment. It covers the vehicle itself when you are being paid to deliver goods that do not belong to you.

In contrast, Goods in Transit Insurance is just one part of this wider package. It only covers the goods being transported — not the vehicle or liabilities to others.

So while GIT can be bought on its own, it is often bundled into a wider courier or business insurance package.

While Goods in Transit Insurance is not a legal requirement in the UK, it is often required by clients — particularly when you are subcontracted by major retailers, courier platforms, or logistics firms. Many will ask for proof of GIT cover before assigning jobs or contracts.

What Goods in Transit Insurance Does Not Cover

Every policy has its limits, and GIT is no different. Common exclusions include:

• Poor packaging or failure to secure items properly

• Theft from unlocked or unattended vehicles

• Wear and tear or damage from faulty goods

• Employee dishonesty

Always check the policy wording to understand what conditions apply, particularly around overnight parking or high-value loads.

Cost vs Risk — Is It Worth It?

GIT cover is typically low-cost, especially when included in a courier or commercial vehicle policy.

But the cost of not having it? Potentially thousands.

Real-world example:
In North London, two masked thieves dressed in hazmat-style suits raided a DPD delivery van in broad daylight in July, 2025. They used a crowbar to break into the van while it was parked on a residential street and made off with multiple parcels, all while the driver was on duty. This highly publicised theft highlights just how bold and opportunistic these crimes have become — and how essential Goods in Transit cover is, even during routine daytime deliveries.
(Source: The Sun – Hazmat thieves raid DPD van 11th July, 2025))

Wider industry trends:

Van theft refers to the loss of entire vehicles, while parcel theft includes break-ins during transit and items stolen after delivery. Together, they highlight how widespread and costly goods-related theft can be. Freight crime in the UK continues to rise. According to recent data:

• Over £81 million worth of cargo was stolen in the UK in a single year, with many thefts targeting parked delivery vehicles. (Supply Chain Brain - 2023 data)

• Between 2015 and 2019, there were over 32,000 van thefts across the UK — an average of 22 vans stolen per day. London accounted for nearly half. (Insurance Factory)

• According to an article by The Sun newspaper, parcel thefts across the UK have been estimated at around £376 million annually, with spikes around Black Friday and Christmas. (The Sun)

We also covered a related topic in our article: Freight Crime on the Rise

All of this reinforces how vulnerable goods in transit can be — and why having appropriate cover in place is not just wise, but often essential.

Who to Speak to at Ratcliffes

• If you are a courier or light haulage operator, our Courier & Light Haulage Insurance lets you choose between:

  • Goods in Transit cover

  • Public and Employers’ Liability cover

  • Or both

• If you operate vans or light commercial vehicles and do not have vehicle insurance in place, our Commercial Vehicle Insurance team can help you arrange comprehensive cover.

• If you run a fleet of trucks, contact our Commercial Vehicle Insurance specialists to explore combined solutions including vehicle cover, GIT, legal expenses, and personal accident protection.

Not sure which route is right for your business? Contact us — we are happy to help.

Conclusion: A Small Policy That Protects What You Carry

Whether you run a single van or manage a fleet, Goods in Transit insurance gives you peace of mind that the items you carry are protected while they are in your care, from pick-up to delivery.

Speak to the team at Ratcliffes — we will help ensure you have the right cover for your journey ahead.