Transporting goods can carry more hidden risks than many operators realise. While standard vehicle insurance is vital, the right Goods in Transit (GIT) cover is often misunderstood, leading to gaps in cover or unexpected denied claims.
Below, we address seven common myths and explain what you should check in your policy to avoid being exposed.
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What is Goods in Transit Insurance?
Goods in Transit (GIT) insurance is a specialist policy designed to protect the items a courier or haulier is transporting from loss, theft, or damage while in their care.
Unlike standard vehicle insurance, which only covers the van or lorry itself, GIT cover specifically safeguards the goods being carried, whether that’s parcels, furniture, tools, or pallets of stock. It provides financial protection if goods are stolen, damaged in a road accident, or accidentally destroyed during loading and unloading.
For professional drivers, it ensures that the value of customers’ goods is protected at every stage of the journey.
The Carriage of Goods by Road Act 1965
Couriers, delivery drivers, and hauliers need this cover because the moment you take possession of a load, you become legally responsible for it.
If goods are lost or damaged in transit, as the courier, you can be held liable for the cost of replacement or repair. The Carriage of Goods by Road Act 1965 states that if goods get lost or damaged while being carried, the courier has to take responsibility for it. The only time a courier would not have to pay up is if they could show the damage wasn’t their fault – for example, if it happened because of something completely out of their control.
Without GIT insurance, that liability can fall entirely on the driver or business owner, leaving you exposed to costly claims that could threaten your livelihood. Many transport contracts and courier networks also make GIT cover a mandatory requirement, meaning you won’t get the job without it.
Claims handlers in UK courier insurance report peculiar cases, including:
- Wedding cakes melting during temperature fluctuations in courier vans, leading to full-value payout under goods-in-transit cover.1
- High-end bicycles and musical instruments damaged despite reinforced packaging, often cited as “professional misuse” in compensation filings2.
- Government forms and passports shredded or stained by liquid leaks from unrelated consignments in shared courier holds3.
These examples show UK courier claims don’t just involve lost boxes – they range from downright mysterious delivery errors to elaborate impersonation schemes that spiral into major insurance or fraud disputes.
Common myths debunked
Here we look at some of the common misunderstandings around courier insurance – and reveal the truths behind them.
Myth 1: “GIT is not legally required.”
Truth: Correct – technically, you are not obliged by law to carry GIT insurance. But in practice many exchange platforms, contract clients or networks do require minimum cover. For example, to join certain courier networks like Courier Exchange, you need a minimum of £5,000 UK GIT cover.
Put another way, if you don’t have the insurance, you are unlikely won’t get the work. If you’re asked to supply proof of cover and don’t have it, the work will be denied, and you remain legally responsible for the goods once they are in your custody.
What to do: Check the terms of any contract you undertake, whether you are transporting your own goods or someone else’s. Confirm the minimum sum insured required, whether cover is UK-only or EU, and ensure your policy wording aligns. If you don’t meet the requirement, you risk losing that business.
Myth 2: “My van insurance automatically covers the goods I’m carrying.”
Truth: Standard van or HGV insurance covers the vehicle and may protect the driver/third-party liability, but it generally does not cover the actual load – the things you are transporting, particularly if you are carrying goods on behalf of someone else. If a parcel, load or customer goods are stolen, damaged or lost in transit you might have no cover.
What to do: Ensure you have a GIT extension or standalone policy that specifically covers goods in your vehicle during transport, not just the vehicle itself. Check the policy wording for “in transit”, “loading/unloading”, and whether your cover includes goods you do not own.
Myth 3: “Goods in Transit cover is only for high-value items.”
Truth: Not so. While high-value loads require more cover, even lower or mid-value items add up quickly, multiple deliveries, drops and pickups create risk. So whether you’re carrying parcels, furniture, or tools, policies are designed to cover the total load value in transit, to ensure you’re not left out of pocket if something goes wrong.
What to do: Calculate your typical loads (number of items × value) and choose a cover level that reflects your worst-case scenario (not just the “average”). Overload your cover and you could end up under-insured.
Myth 4: “GIT insurance only covers theft.”
Truth: Far from it. A GIT policy may cover theft, yes, but also loss or damage in transit, accidental damage, loading/unloading incidents, fire, road accident damage and sometimes goods left in a vehicle overnight (subject to conditions).
What to do: Review exactly what your policy includes and the full list of inclusions. Are loading/unloading incidents covered? What about theft from unattended vehicle? Is fire or weather damage included? Are there any exclusions for certain types of goods (e.g., refrigerated, fragile)? These exclusions determine your real cover.
Myth 5: “My customer’s insurance covers their goods, so I don’t need it.”
Truth: Once goods are in your possession, you become legally responsible for their safety. A client’s insurance may not extend to cover while goods are being transported by a third-party. You could be liable for replacement cost or damage – your business reputation and financials may suffer.
What to do: Contracts should clearly define who has liability for goods during transit. If you’re the carrier, make sure your GIT policy covers the goods. If you’re a subcontractor, insist on seeing your client’s cover and check it aligns with your transport risks.
Myth 6: “Goods in Transit cover is expensive.”
Truth: It’s often surprisingly affordable, especially when compared with the potential cost of replacing lost or damaged goods. Premiums depend on value, goods type, vehicle security and risk profile. Many insurers also offer flexible options tailored to couriers, removers, or hauliers, so you only pay for what you need.
What to do: Shop around and broker your cover. Ask about flexible policy levels tailored for your business (courier vs removals vs HGV haulage). Demonstrate good security practices and keep accurate goods-in-transit records, that can reduce your cost.
Myth 7: “All Goods in Transit policies are the same.”
Truth: Coverage can vary considerably between providers. Some may exclude high-risk goods (electronics, alcohol), others may limit overnight theft from unattended vehicles or exclude cross-border risks.
What to do: Read the policy wording – not just the summary. Focus on:
- What goods are excluded?
- What geographic cover is included (UK, EU, worldwide)?
- Are loading/unloading incidents covered?
- What are the conditions for unattended vehicle theft?
- Are time-sensitive goods (perishables) covered?
Wrapping up
In an industry built on trust and reliability, Goods in Transit insurance is not just about compliance, it’s about protecting your reputation and your income. It reassures clients that their deliveries are in safe hands, while giving drivers peace of mind that they’re covered if the unexpected happens. For couriers working to tight deadlines and high customer expectations, GIT insurance is an essential part of a professional risk management strategy, ensuring that one accident or theft doesn’t derail your business.
Having the correct GIT insurance is not just “nice to have”, it’s often essential to securing contracts, protecting your business and avoiding unexpected claims. Gaps in cover can cost more than just premiums, they can cost lost contracts, reputational damage and replacement cost bills.
BCD (Business Choice Direct), understand the ins and outs of the courier world. They offer GIT cover that is tailored to your business type, from owner-drivers to fleet operators, with access to exclusive rates and in-house products unavailable elsewhere. If you’re unsure about your level of cover, or want to explore smarter policy options, their expert team is here to help. Speak to them for a full review of your needs and ensure your cover works as hard as you do.
Remember: Don’t assume cover. Confirm it. Check it. And ensure it matches every contract you undertake.
Ready to learn more about Goods In Transit Insurance? Speak to BCD’s team of specialists on 0344 776 5700.
Get access to 15,000+ daily loads on Courier Exchange
Be your own boss. Set your own hours. Make your own money.
1 https://www.hilldickinson.com/insights/articles/court-upholds-claim-damage-perishable-cargo
2 https://grieves-solicitors.co.uk/what-is-the-cost-of-being-knocked-off-your-bike-exploring-the-average-compensation/
The Carriage of Goods by Road Act 1965 – https://www.legislation.gov.uk/ukpga/1965/37
Business Choice Direct Insurance Services® is a trading name of Specialist Broking Retail Limited who are authorised and regulated by the Financial Conduct Authority. Specialist Broking Retail Limited is registered in England and Wales No. 10301653. Registered Office: Affinity House, Bindon Road, Taunton, Somerset, TA2 6AA
