What is Goods in Transit Insurance?

When goods move across the UK—whether a one-off valuable delivery or a routine business shipment—the financial risk of damage, theft, or loss sits with the shipper and receiver. Goods in transit (GIT) insurance is the protective layer that sits between that risk and reality. It is a specialist form of cover that protects consignments while they are in the physical possession of a courier, from the moment of collection to the moment of delivery.

Understanding goods in transit insurance is essential for anyone regularly shipping valuable, fragile, or time-sensitive items. The distinction between what a courier is legally liable for under standard trading conditions and what GIT insurance actually covers is a common source of confusion. Many shippers assume their courier's liability insurance is the same as goods in transit cover—it is not. This glossary entry explains the differences, how the cover works, what it includes and excludes, and how to make a claim.

What is Goods in Transit Insurance?

Goods in transit insurance is a standalone indemnity policy purchased by or on behalf of a courier operator. It protects the financial value of goods that are physically in the operator's possession during transport. Unlike the operator's general liability or professional indemnity cover, GIT insurance is specifically designed to respond to loss, damage, or theft of cargo itself—not injuries, damage to third-party property, or professional negligence.

In the UK courier and haulage market, GIT insurance typically comes in two forms: annual policies that cover unlimited consignments up to a specified per-item or per-consignment limit, and single-trip or extended cover arrangements for high-value loads that fall outside annual policy thresholds. The annual model is most common for general couriers; the single-trip model is essential for fine art, prototype electronics, and bespoke high-value consignments.

T&C Logistics operates with goods in transit insurance as standard on all same-day courier services, securing cover up to £50,000 per consignment as default. For consignments exceeding that threshold—such as fine art, prototype components, or one-off specialist moves—we coordinate with specialist partner carriers who hold dedicated GIT cover extending to £50,000. This two-tier model ensures that routine collections across the Thames Valley, London, and wider UK are protected under standard terms, while genuinely high-value and sensitive loads receive tailored, trip-specific underwriting.

How Goods in Transit Insurance Differs from Carrier Liability Under Trading Conditions

This is the critical distinction that many shippers miss. When you hand goods to a courier, there are two separate legal frameworks that protect you:

1. Statutory or Contractual Liability Under Trading Conditions

Most UK couriers and haulage operators operate under standard trading conditions, either the RHA (Road Haulage Association) conditions or BIFA (British International Freight Association) conditions, depending on whether they are primarily domestic or international. These conditions set out the operator's legal liability—in other words, what they are liable to pay if something goes wrong.

Under RHA conditions (which apply to domestic road transport), a carrier's liability for loss or damage is typically limited to £1.50 per kilogramme of goods lost or damaged, unless the shipper has declared a higher value at the time of booking and paid a supplementary charge. This sounds like very limited cover, and in practice it is. If you are shipping a £5,000 prototype component and do not declare the value, your legal recourse against the carrier is capped at whatever that kilogramme works out to—often less than £100.

For international road transport within the EU and European Economic Area, the CMR (Convention on the Contract for the International Carriage of Goods by Road) convention applies. CMR liability is similarly capped—at approximately €10 per kilogramme (around £8.50–£9 depending on exchange rates), unless the shipper declares a higher value and pays additional premium. CMR also permits carriers to exclude liability entirely if they can demonstrate the loss or damage was caused by the shipper's own negligence, the nature of the goods, or an unforeseeable external event.

The key point: liability under trading conditions is reactive, limited, and sometimes excludes the carrier entirely if specific conditions are met.

2. Goods in Transit Insurance

GIT insurance operates independently of trading conditions. It is an indemnity policy taken out by (or arranged by) the courier. The insurer agrees to pay out up to the policy limit if goods are lost, damaged, or stolen during transport—regardless of the courier's legal liability. The policy is proactive (it covers what the courier owes) rather than reactive.

Crucially, the shipper is often named as a beneficiary on the policy, meaning they can claim directly if they suffer loss. This side-steps the commercial dispute that can arise if a shipper has to sue the carrier and then relies on the carrier's insurer to pay out.

For T&C Logistics customers, the distinction is straightforward: all our same-day courier collections are protected by goods in transit insurance cover to £50,000. This is in addition to any legal liability we might owe under RHA conditions. If a parcel is damaged or lost, you are covered up to £50,000 by our insurer. You do not have to negotiate or prove negligence; the insurance settles the claim.

What Goods in Transit Insurance Typically Covers

A standard GIT policy will indemnify the courier (and usually name the shipper as beneficiary) for:

Loss and Damage in Transit
Physical loss, partial loss, or damage to goods from the moment they are collected from the shipper's address or designated pickup location until the moment they are delivered to the consignee's address. This includes damage from impacts, crushing, vibration, and environmental factors such as water ingress, heat, or cold—provided the goods were adequately packaged and the damage did not result from excluded causes.

Theft and Robbery
Theft of goods from a vehicle or courier personnel is covered, as is robbery (theft by force). However, many policies exclude theft if the vehicle is left unattended without adequate security measures—for example, leaving a van unlocked in a car park overnight, or leaving a parcel visibly in an unattended vehicle in a public place. T&C's ULEZ-compliant fleet is GPS-tracked and equipped with security measures commensurate with the value of goods carried; drivers operate under strict protocols to prevent theft risk.

Contamination and Environmental Damage

Accidental contamination of goods from other cargo, or damage from spillage, dirt, or exposure to weather, is often covered if the courier failed to take reasonable care or provide adequate separation during transport.

Packaging-Related Claims (With Conditions)
If goods are damaged because packaging was inadequate for the mode of transport or the distance, some policies will cover the loss provided the courier should have flagged the packaging deficiency at collection. However, if the shipper explicitly packed goods inadequately despite the courier's warning, the claim may be declined.

What Goods in Transit Insurance Typically Excludes

GIT policies are not blanket cover. Common exclusions include:

Consequential Loss and Business Interruption
GIT insurance covers the intrinsic value of the goods themselves. It does not cover lost profits, lost business, delays, or penalties that result from non-delivery or late delivery. If you ship a component that would have been sold for £10,000 profit but it arrives damaged and you lose the sale, the insurance covers the cost of the component, not the £10,000 profit. This is a crucial gap for manufacturers and retailers—and it is why bespoke contingency insurance and transit loss-of-revenue policies exist.

High-Value Goods and Specie Exclusions
Many standard annual GIT policies exclude or severely restrict cover for cash, jewellery, precious metals, fine art, and gemstones. These are treated as "specie"—singular, high-value items—and require separate single-trip arrangements with specialist underwriters. This is why a fine art shipper or a jeweller moving stock must go through dedicated fine art or secure valuables couriers.

Damage Caused by Inadequate Packaging (Shipper's Responsibility)
If goods are damaged because the shipper packed them inadequately for the mode of transport, and the courier accepted them without objection, the insurer may decline the claim arguing the risk was exacerbated by the shipper's own breach of duty to package adequately.

Loss in Transit Due to Shipper's Non-Declaration of Value
If a shipper ships a high-value item but declares a lower or generic value at pickup, and the item is lost or stolen, the insurer will only pay up to the declared value. This is why accurate declaration at collection is critical.

Wear and Tear, Deterioration, and Inherent Vice
Goods that deteriorate naturally during transit (e.g. food perishing, ice melting, paint separation due to temperature) are typically excluded. Some GIT policies cover temperature-controlled transport but may exclude loss if the shipper did not specifically request or pay for that service.

Mechanical and Electronic Failure
If goods are damaged by mechanical failure of the vehicle or courier equipment (not by collision or impact), the claim may be denied. For example, if electronics are fried by power surges or temperature swings in an uncontrolled vehicle, the shipper should have arranged temperature-controlled or climate-controlled transport.

Unlawful Goods and Prohibited Items
GIT insurance does not cover goods that are illegal to transport, or goods transported in breach of law (e.g. goods transported without required import/export licences, or counterfeit merchandise). T&C Logistics verifies the legality of all goods before collection; goods suspected of being unlawful are declined.

Goods Belonging to the Courier or Driver
GIT insurance protects goods belonging to the shipper and their customer. It does not cover a driver's personal belongings or test goods that belong to the courier.

Per-Consignment vs. Annual Policies

GIT insurance comes in two main structures:

Annual Policies
The courier purchases an annual (or multi-year) policy that covers all consignments, subject to a per-item or per-consignment limit. Most UK couriers use annual policies with limits of £25,000 to £100,000 per consignment. T&C Logistics operates with a standard annual policy covering up to £50,000 per consignment. The premium is paid upfront to the insurer; there is no per-shipment charge to the shipper (it is factored into the courier's margin or quoted rate). Claims are processed through the shipper's proof of value and POD; payouts are made by the insurer within the policy terms (usually 30–60 days after supporting documentation is submitted).

Single-Trip or Extended-Cover Policies
For goods exceeding the annual policy limit, or for genuinely unique, high-value, or bespoke consignments, specialist insurers offer single-trip cover. This is an ad-hoc policy purchased specifically for one shipment, with the premium calculated based on the declared value, nature of goods, distance, and perceived risk. A single-trip GIT policy for a £50,000 fine art shipment from London to Edinburgh will be underwritten individually, with site surveys, photographic evidence, and specialist packing requirements built into the terms. T&C Logistics coordinates single-trip cover through partner carriers who hold MHRA WDA(H) and specialist GIT underwriting relationships, extending cover to £50,000 for consignments such as prototype electronics, pharmaceutical samples, and fine art.

The distinction is important: annual policies are efficient and economical for routine shipments; single-trip policies are tailored, transparent, and proportionate for one-off high-value moves. When requesting a quote from T&C Logistics for a consignment above £50,000, we will discuss whether a single-trip arrangement is appropriate and provide a dedicated quotation including the extended insurance cost.

How to Check a Courier's Goods in Transit Cover Before Booking

Before entrusting a shipment to a courier, you should always verify their GIT insurance arrangement:

1. Ask for Written Confirmation of Cover Limits
Contact the courier and ask for a written statement of their goods in transit insurance limits. This should include: (a) the standard per-consignment limit on their annual policy; (b) whether that limit is per-item or per-consignment; (c) any high-value or specie exclusions; (d) the process for arranging cover above the standard limit; (e) their insurer's name (or if cover is arranged via a partner). Reputable couriers will provide this within 24 hours. Couriers who are evasive or quote extremely low limits (under £10,000) may not be adequately insured.

2. Understand the Shipper's Rights
Confirm whether the shipper (you) is named as a beneficiary on the policy, or whether claims must be made through the courier. Ideally, you should have the right to claim directly; if not, you are reliant on the courier's cooperation to recover losses.

3. Check the Policy Exclusions Relevant to Your Goods
If you are shipping temperature-sensitive goods, ask whether the standard policy covers uncontrolled temperature, or whether you need to pay for monitored climate-controlled transport. If shipping jewellery or artwork, ask whether those categories are excluded and what the single-trip process looks like. If shipping fragile electronics, ask whether the policy requires specific packaging standards and whether the courier will flag inadequate packaging at collection.

4. Verify the Insurer's Claims Process
Ask for the claims process in writing: what documentation is required (invoice, POD, photos), what is the claims deadline, and what is the average settlement timeframe. Claims that take 6 months to settle are not useful if you need to replace goods quickly.

5. For High-Value or Specialist Goods, Request a Quotation Including Extended Cover
If you are shipping something above the standard limit, do not assume the courier can arrange cover; ask for a specific quote that includes the extended insurance cost. This way you are not surprised by additional charges and you know the full extent of protection before handing over goods.

T&C Logistics provides this information transparently on all quotations for same-day courier services. For consignments above £50,000, we include a separate extended cover quotation with the standard rate, so you can see the insurance cost upfront and decide whether to proceed.

Making a Goods in Transit Claim: Procedures and Timescales

If goods are lost, damaged, or stolen in transit, the claim process is governed by the policy terms. Here is a typical workflow:

1. Notify the Courier Immediately
Contact the courier as soon as you discover the loss or damage. Most policies require notification within a specific timeframe—typically 24–48 hours—to preserve the claim. Document the condition of goods (take photographs if possible) and note the delivery POD (Proof of Delivery) signature and time. If goods are stolen, also report the incident to the police and obtain a crime reference number.

2. Provide Proof of Value
The insurer will require evidence that the goods existed and had the value you are claiming. This typically includes: (a) the original invoice or receipt; (b) a bill of lading or collection note showing the goods; (c) photographs of the goods pre-transit (ideally); (d) any specification sheets or certificates of authenticity (for high-value items). For shipments above £50,000, the insurer may also request a valuation from an independent surveyor.

3. Submit the Claim Form and Documentation
The courier will provide a claim form and instructions for submission. This should include a detailed description of the loss, the date and time of discovery, and all supporting documentation. Submit this to the courier (who will forward to their insurer) or directly to the insurer if you are named as a beneficiary.

4. Claims Investigation
The insurer will investigate the claim, which may include: contacting the courier and driver for a statement; reviewing the vehicle GPS tracking data; assessing the packaging and whether it was adequate; determining whether any policy exclusions apply. This phase typically takes 10–30 days.

5. Settlement or Decline
If the claim is upheld, the insurer will issue a settlement payment (usually within 30–60 days of investigation completion). If the claim is declined, the insurer will provide a written explanation and the grounds for decline (e.g. inadequate packaging, shipper negligence, or a specific policy exclusion). You then have the right to appeal or pursue a complaint through the Financial Ombudsman Service if the insurer is regulated in the UK.

For T&C Logistics same-day courier shipments, the process is streamlined: we handle the initial notification to the insurer, we supply POD and tracking data, and we coordinate with you to gather proof of value. The goal is a settlement within 30 days if documentation is clear.

High-Value and Bespoke Consignments: Single-Trip Arrangements

When goods exceed the standard annual policy limit—whether because of intrinsic value, rarity, or sensitivity—a single-trip goods in transit arrangement is necessary. T&C Logistics coordinates these through specialist partner carriers who hold dedicated GIT underwriting relationships and can secure cover up to £50,000 for:

Fine Art and Antiques
Paintings, sculptures, antique furniture, and collectibles are underwritten on a per-shipment basis with full valuation, condition surveys, and specialist packing and handling requirements. Partner carriers provide white-glove service aligned with fine art courier standards. See our fine art courier service page for detailed terms.

Prototype and Pre-Production Electronics
Prototype circuit boards, test units, and pre-production components for automotive, aerospace, or consumer electronics are high-value, often irreplaceable, and time-sensitive. A single-trip policy will specify the exact goods, their location and handling during transport, and may require GPS tracking, photo documentation, and signature-on-delivery protocols.

Pharmaceutical and Life Sciences Samples
Clinical trial samples, vaccine batches, or bespoke pharmaceutical compounds require temperature-controlled transport and GIT cover that factors in the regulatory and scientific value (not just the material cost). Partner carriers can coordinate this through carriers holding GDP certification and specialist GIT underwriting.

One-Off High-Value Commercial Consignments
A one-off shipment of £75,000-worth of specialist machinery, computer servers, or industrial components may not fit a standard courier's annual policy. T&C Logistics will arrange a single-trip quotation that covers the goods, transport distance, and any specific requirements (e.g. secure vehicle, GPS tracking, signature-required delivery).

"Goods in transit insurance is the bridge between law and reality. Statutory liability under RHA or CMR is often too limited to matter; GIT insurance is what actually protects shippers and their customers. We've seen too many businesses assume they're covered only to discover their goods fall into an exclusion. That's why transparency about what we cover, and how, is not optional—it's fundamental to how we operate." — Taras, Founder, T&C Logistics

T&C Logistics' Goods in Transit Arrangement

All T&C Logistics same-day courier collections across the UK are protected by goods in transit insurance cover to £50,000 per consignment as standard. This is included in the cost of the service; there is no additional charge or opt-in required. The cover applies from the moment a collection is confirmed and a driver is assigned, through pickup, transport, and delivery.

For consignments valued between £50,000 and £1,000,000, we coordinate single-trip cover through specialist partner carriers. When you request a quotation for a high-value consignment, we will provide: (a) the standard same-day courier rate; (b) a separate quotation for extended GIT cover if required; (c) details of any specific requirements (e.g. secure vehicle, GPS tracking, photo documentation, signature-on-delivery). This allows you to make an informed decision about whether the extended cover is necessary and what it costs.

We do not claim cover beyond these limits, and we do not arrange cover for goods that fall into standard policy exclusions (cash, unless specifically underwritten; counterfeit or unlawful goods; items that deteriorate naturally if uncontrolled climate is not arranged). Our approach is to be honest about what we can protect and transparent about the cost and process for extended protection.

For more information about same-day courier cover, see our same-day courier service page. For high-value and fine art shipments, see our high-value courier and fine art courier service pages. To request a quotation including extended cover assessment, use our online quotation form or call +44 121 720 3841 (06:00–17:00) or +44 7737 778964 (08:00–22:00).

Related Glossary Terms

For a complete understanding of goods in transit insurance in context, you may also find these terms useful:

• Incoterms — International terms of sale that define risk and cost allocation between buyer and seller, which can intersect with goods in transit insurance decisions. See our Incoterms glossary page.
• Proof of Delivery (POD) — The signature and photographic evidence collected by the courier at the point of delivery, essential for claims investigations.
• RHA Conditions — Road Haulage Association standard trading conditions governing carrier liability for domestic transport in the UK.
• CMR Convention — The Convention on the Contract for the International Carriage of Goods by Road, which governs liability for cross-border European road transport.