Broker-arranged
Goods in transit insurance
Goods in transit insurance covers stock, tools and freight while they’re on the road, whether you carry your own goods or other people’s. Here’s what it covers, the difference between own-goods and carriers cover, and how a licensed broker arranges it.
- Own goods or carriers liability
- Theft, damage and loss in transit
- One short form, then a licensed broker takes it from there
What is goods in transit insurance?
Goods in transit insurance covers goods while they’re being transported, from loading to delivery. It responds to damage in a crash, theft from the vehicle, fire and loss. Policies are written two ways: own-goods cover for the stock and equipment your business moves, and carriers cover for your liability when you transport other people’s goods for a fee.
Motor insurance covers the vehicle, not the load. Public liability covers damage to other people’s property, but usually excludes goods in your care, custody or control. Goods in transit is the policy that covers the load.
Own goods or carriers cover
| Own-goods cover | Carriers cover | |
|---|---|---|
| Who buys it | Retailers, wholesalers, tradies and anyone moving their own stock or gear | Couriers, removalists, freight companies and owner-drivers |
| What it covers | Your goods, in your vehicle or sent with a carrier | Your legal liability for customers’ goods in your care |
| Basis | The value of the goods | Your liability under your contract or consignment note, up to a limit per load |
| Watch for | Limits per vehicle and overnight conditions | Contract terms that make you liable for more than the policy limit |
Transport contracts and consignment notes often set out who carries the risk of loss. A broker reads them against the policy so the two match.
Heavy vehicles and the chain of responsibility
If the goods travel on a heavy vehicle, the National Heavy Vehicle Regulator’s chain of responsibility applies to everyone in the chain. The NHVR lists the parties: the employer, prime contractor, operator, scheduler, consignor, consignee, packer, loading manager, loader and unloader. Each is accountable under the primary duty, which the NHVR describes as the duty to ensure, so far as reasonably practicable, the safety of their transport activities.
Insurance doesn’t discharge that duty. A load that shifts because it was badly restrained can be a breach as well as a claim, so insurers ask how loads are secured and who does it.
What’s usually covered, and what isn’t
Usually covered
- Damage in a crash, overturning or collision.
- Theft from a locked vehicle, with conditions.
- Fire and flood while in transit.
- Loading and unloading, in many policies.
Usually not covered
- Goods left in an unattended vehicle overnight, unless the policy allows it.
- Wear, tear and gradual deterioration.
- Poorly packed goods that were damaged because of the packing.
- Cash, jewellery and some high-value goods, unless specified.
How to get goods in transit cover through us
Goods in transit insurance questions
Does public liability cover goods I’m transporting?
Usually not. Public liability policies generally exclude property in your care, custody or control. Goods in transit covers the load.
Does my motor insurance cover my load?
Motor insurance covers the vehicle and damage to other vehicles and property, not the goods you’re carrying. Check the PDS, then insure the load separately.
What is carriers liability insurance?
Goods in transit cover written for businesses that carry other people’s goods for a fee. It covers your legal liability for loss or damage to those goods, up to a limit per load.
Are tools in my ute covered by goods in transit?
Tools are usually insured under a tools policy, which covers them in the vehicle and on site. Goods in transit suits stock and freight. A broker can set it up either way.
Why is goods in transit insurance arranged by a broker?
Insurers rate it on what you carry, how far, how it’s secured and the contracts you work under, so a licensed broker arranges it rather than an online quote.
Keep reading
More broker-arranged cover
Sources
Goods in transit