Do I Need Goods in Transit Insurance as a New Courier?


From the moment that goods that require delivery enter your possession to the moment they are safely placed in the hands of the recipient, they are the responsibility of the courier. This means that if the goods get damaged, lost or stolen during transit, the courier can be held liable for the replacement of the item or items. And despite calls to reduce congestion during rush hour, city traffic is getting worse.

Replacing just one item can be costly and replacing multiple items can be a huge financial loss, especially for a new courier. Insuring goods is therefore highly recommended for all couriers. This is a type of liability insurance that provides cover for the courier in the event of loss, damage or theft of goods while they are in transit.

What is in Transit Insurance?

In transit insurance (or just plain transit insurance) provides cover for the cost of goods from the moment they leave the premises where they are being loaded to the when they reach their destination. This basically means that the goods in transit insurance provider will pay for the cost of replacing the goods should an event occur that causes damage or loss of the property.

Transit insurance generally provides cover for the following events:

  • Goods that are damaged or lost in a collision.
  • Goods that are stolen while in transit.
  • Goods that are damaged due to fire while in transit.
  • Malicious damage of goods while in transit.

Why Is Goods In Transit Insurance Important?

It is important to weigh up the risk of an event occurring that is likely to result in the damage or loss of goods that are in transit. Couriers are generally at a higher risk of being in an accident simply because they spend more time on the road and the nature of the job. The risk of malicious damage or theft is also increased for couriers. The higher the risk that loss or damage to goods may occur, the greater the need for cover.

It is also necessary to consider what will happen if a courier is held liable to pay or cover the cost of replacing the goods that were damaged or lost. A courier can never be sure about the actual value of the goods that they are carrying at any one time and if an entire van or truckload is lost, they could be liable for hundreds of thousands of pounds. Plainly stated, most couriers simply do not have the funds to cover such a loss and it could result in bankrupting their enterprise.

Insurance provides the peace of mind that a courier won’t be financially responsible for the loss or damage of goods in transit and that they can carry on with business, as usual, should an unforeseen event occur.

This said the reason that most couriers, especially those just starting out, don’t have in transit insurance is that they don’t want to absorb the additional cost of paying for cover. However, there are a number of options available to make this type of insurance affordable such as adding it to an existing commercial driver insurance policy. It is recommended to compare premiums from different in transit insurance providers for new couriers and get insured as soon as possible.

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