Goods in transit insurance for construction materials and equipment

What goods in transit insurance is

Goods in transit insurance covers your financial interest in goods while they are being moved from one place to another, typically by road. It can apply to goods carried in your own vehicles or goods handed to a transport company, depending on how the policy is written.

For construction businesses the goods are usually materials and equipment: pipes, precast units, steel, cement, aggregates, formwork, small plant and tools. The policy defines the start and end of the journey, which often includes loading and unloading, and states what happens when a load is left overnight or transferred between vehicles.

Cover is arranged on an annual basis for regular movements or for a specific journey. The sum insured, the limit per vehicle and the conditions on the way goods are secured are central to the quotation.

Who may need goods in transit insurance

• Contractors who move materials from suppliers or depots to site with their own vehicles.
• Contractors who use transporters and want to understand how far the carrier’s own liability goes, since carriers usually limit their liability in their terms.
• Businesses that move precast, steel or pipe sections that are heavy, awkward to secure and expensive to replace.
• Plant owners who transport machinery on low-beds between sites and want clarity on loading and unloading risks.
• Subcontractors whose contracts require them to insure their own materials until they are incorporated into the works.

What may be insured, subject to terms

Construction materials

Cement, aggregates, steel, pipes, precast units and similar materials while being carried to site or between yards, subject to how they are packed and secured.

Equipment and tools

Small plant and portable equipment moved between sites. Larger machines are usually dealt with under a plant policy, which may or may not include transit.

Loading and unloading

Many policies include loading and unloading at the start and end of the journey. Check whether cranes and hiabs used for this are treated differently.

Own vehicles and hired transport

Cover may differ depending on whether the goods travel in your own vehicle, a transporter’s vehicle or a courier’s.

Specified journeys or annual movements

Some businesses insure a declared annual value of goods moved, others a single high-value load. The basis affects how the premium is calculated.

Important limitations and questions to discuss

Packing and securing

Policies typically expect goods to be properly packed and secured for the journey. Loss caused by poor loading or lashing may be excluded.

Unattended vehicles

Cover for theft from an unattended vehicle is frequently conditional on the vehicle being locked, parked in a secure place or fitted with a tracking device.

Theft and hijacking

Ask how theft, hijacking and attacks on vehicles are treated, including any conditions about routes, driver numbers and tracking.

Overloading and unroadworthy vehicles

Loss arising when a vehicle is overloaded or unroadworthy may be excluded.

Limits per vehicle

A single truck can carry a very high value. Check the maximum insured per vehicle or per conveyance and what happens when it is exceeded.

Carrier’s liability

Transport companies’ own liability is usually limited by their terms. Insurance on your own goods does not alter what the carrier owes you, and the insurer may pursue the carrier after paying a claim.

Which policy section responds to what

Contractors often assume that one policy covers every stage of a project. In practice, the point in the journey from supplier to completed works determines which policy is relevant. The table below is a general guide; your policies may be arranged differently.

Information we usually need for a quotation

To prepare a goods in transit quotation we normally ask about what you move, how you move it and what security you use.

You do not need everything on day one. A short description of the work is enough to start, and the quote form only asks for the details relevant to your enquiry.