Goods in transit insurance is designed to protect goods against loss, theft or damage while they are being moved from one place to another. In practice, it is often used by couriers, delivery firms, hauliers, retailers, wholesalers and tradespeople who carry tools, materials, stock or customer-owned items in a van.[1]

It is separate from the legal minimum motor insurance needed to drive on the road. UK law requires insurance against third-party risks for the vehicle itself, but that does not automatically mean the goods you are carrying are insured.[2]

What is goods in transit insurance?

The ABI describes goods-in-transit insurance as cover for goods that are lost, stolen or damaged while they are being moved in your vehicle or by a carrier.[1] Policies can vary, but the main purpose is to protect the value of the load rather than the van.

Depending on the insurer and policy wording, cover may apply while goods are:

• Being transported between locations
• Being loaded or unloaded
• Temporarily stored during the journey

The exact scope matters. Some policies are built for local van deliveries, while others are designed for courier fleets, same-day work or longer-distance haulage.

Who might need it?

Goods in transit cover can be relevant if your business carries:

• Your own stock, materials, tools or equipment
• Customers’ goods
• Goods for delivery as a courier or haulier

A builder carrying their own materials may need a different setup from a courier delivering parcels for payment. The important point is that the policy should match the real use of the van and the type of goods being carried.

Goods in transit insurance vs van insurance

This is where many businesses get caught out.

A standard van insurance policy is mainly there to insure the vehicle and your liability to other road users. Goods in transit insurance is there to insure the load.[2] They are different covers, and one does not automatically replace the other.

For some businesses, there is also a third issue: liability. If you carry someone else’s goods for reward, your contractual or legal responsibility for loss or damage may not be the same thing as first-party insurance for the goods themselves. For international commercial road journeys, GOV.UK says you must have a CMR note, which is part of the contract for carriage.[3]

What can goods in transit insurance cover?

Policies differ, but cover may include loss, theft or accidental damage to goods while they are being carried.[1] The details usually depend on:

• The type of goods
• The maximum load value
• Whether the goods belong to you or a customer
• The territory of use
• Whether the goods are left in the vehicle overnight
• The security and packaging conditions in the policy

Some businesses choose higher limits for seasonal peaks or specific high-value jobs. Others need cover only for lower-value own goods carried as part of day-to-day work.

What is often excluded or restricted?

There is no single exclusion list that applies to every insurer, but goods in transit policies commonly place restrictions around:

• High-value or theft-attractive goods
• Fragile items
• Perishable goods
• Hazardous loads
• Livestock
• Cash and valuables
• Poor packaging or poor load security
• Unattended vehicles or overnight storage

That is why the policy wording matters so much. The limit per vehicle, per load, per item and per claim can all differ.

Load security still matters

Even with insurance in place, the goods need to be loaded and secured properly. GOV.UK says all loads carried on vehicles must be secure, regardless of the vehicle type, load type or journey length.[4]

That matters for safety, and it can also matter for insurance. If goods are badly packed or poorly secured, an insurer may look closely at whether policy conditions were followed. GOV.UK’s load-securing guidance also applies to vans and other light goods vehicles, not just HGVs.[5]

What about overnight stops?

Many businesses specifically need cover when goods are left in a van outside working hours or during overnight stops. This is an area where policy terms can vary a lot.

Rather than assuming overnight storage is included, check:

• Whether cover applies when the vehicle is unattended
• Whether goods must be removed at the end of the day
• Whether the van must be parked in a locked building, secure yard or monitored location
• Whether alarms, immobilisers or trackers are required

These details can make a big difference to whether the cover is suitable for your route and working pattern.

How to compare goods in transit insurance

When comparing quotes, focus on the fit between the policy and the job. Useful checks include:

• The maximum value of any single load
• The types of goods allowed
• Territorial limits
• Loading, unloading and temporary storage cover
• Unattended vehicle and overnight conditions
• Excesses and claim settlement basis
• Whether the cover is for your own goods, customers’ goods, or both

A cheaper premium is not much help if the policy limit is too low for the loads you actually carry.x

Compare quotes carefully

Goods in transit insurance can be useful for many van-based businesses, but it is not one-size-fits-all. The right policy depends on what you carry, who owns the goods, where you travel and how the vehicle is stored between drops.

If you are comparing options, make sure the quote matches the real job: the type of goods, the value at risk, and whether you need cover only while driving or also during loading, unloading and overnight stops.

Sources

1. ABI, “Insurance for your small business” — View more
2. legislation.gov.uk, “Road Traffic Act 1988, Section 143” — View more
3. GOV.UK, “Carry out international road haulage” — View more
4. GOV.UK, “Securing loads on HGVs and goods vehicles: Responsibility for load security” — View more
5. GOV.UK, “Securing loads on HGVs and goods vehicles” — View more

VanCompare Editorial Team

The VanCompare Editorial Team produces clear, practical guidance on UK van insurance and related topics. We work with FCA authorised insurance providers and use insurer information where relevant to explain cover in plain English and help drivers make informed decisions.

Where relevant, our content is checked against publicly available UK guidance and information from sources such as the FCA and GOV.UK to help keep it accurate and up to date.

This content is for general information only and is not financial advice.