How Goods In Transit Insurance Can Work For You
Whether you are running a business as a sole trader or have a fleet of vehicles in your haulage business, one rule is constant – you need to have the right insurance.
Understanding the finer points of insurance is often best left to experts but it never hurts to have a basic working knowledge of the subject. Haulage insurance and its variations as well as extra policies a business can take is crucial to covering both you and those you move goods for.
Basics Of Haulage Insurance
While we all know that every vehicle on the road needs to have insurance on it, what you use the vehicle for also plays a part in what type of insurance is needed. For example, a builder using the van for his own tools go to different jobs can use simple van insurance for self-employed people, known as carriage of own goods. But the haulage company who are moving other people’s goods around need haulage insurance.
Haulage insurance itself has further definitions. It is seen as the use of a vehicle to carry a single load over a long distance on behalf of someone who is paying you to do this. A couple of stops on the journey is fine but if you are making several stops then the insurance requires moves up a level to courier insurance.
Courier insurance is like haulage but is designed for frequent stops, often around a smaller area. A parcel delivery service is one example of this kind of use – the goods belong to someone else and there are lots of stops around different houses or businesses to drop them off.
The big factor that also needs to be understood with both haulage and courier insurance is that neither carry any cover for the actual goods being transported. This is where Goods in Transit insurance comes in.
What is Goods in Transit?
A Goods in Transit policy is one designed to cover the items you are moving even though they belong to someone else. The policies all have slightly different wording, so check this before taking a policy. But generally, the goods will be covered for theft, loss and damage while in transit as well as damage caused by an accident while in transit. Special extensions apply to businesses such as furniture removers and insurance house removals.
There are policies that cover the self-employed individual and are termed as ‘own goods’ – this will cover tools and other equipment in the vehicle. But for haulage work, then the ‘haulage’ use will need to be on the policy to ensure the right cover is in place.
Having the right use on both the main insurance policy and the Goods in Transit extension is crucially to ensuring you are covered in the event of an accident or other misfortune. If you don’t have the right cover on a policy, an insurer can void it and leave you without cover. This could mean your business is liable for the costs of the items being transported as well as damage to yours and the third party vehicle and even injuries.