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What Does Goods in Transit Insurance Cover?

Nov 17, 2022
Views: 487

General Insurance Business Insurance Goods in Transit Insurance Retail and Consumer Insurance International Freight Insurance Transport & Logistics Insurance

Running a business in the cargo and shipping industry exposes you to various risks that can turn your company upside down anytime. This is where Goods in Transit insurance comes in. It can help your business recover from financial damages incurred from shipping equipment, stocks, raw materials, and products. While the careful selection of carriers and packaging play an important role in protecting your goods, this can only do so much in the face of perils outside of your control. Why are Goods in Transit insurance important and what does it usually cover? Here are the risks usually included in a policy:

Natural calamities such as floods and earthquakes
Storms and lightning damage
Collisions
Overturning vehicles
Theft by means of forced entry
Delayed shipment and transhipment expenses

If you run a business that involves transporting livestock, tobacco, or valuable goods like antiques, jewellery, and spirits, you can have a Goods in Transit insurance plan customised to cover them. Insurance carriers may also offer goods-in-transit insurance policies that include coverage for liquidated damages, consequential losses, and costs incurred from startup delays caused by non-deliveries.

What may Goods in Transit Insurance not cover?

While it is important to know what a goods-in-transit insurance plan protects, it is also essential to learn what it may not cover. Below is a list of what may not included in a typical Goods in Transit cover:

Refrigeration equipment breakdown
Electrical, electronic, or mechanical breakdown, derangement, or failure
Equipment wear and tear
Explosives and bulk petroleum products
Theft resulting from unattended vehicles
Theft committed by or with the help of any of your employees
Confiscation, requisition, or detention by customs
Losses arising from your employee, partner, or director’s dishonesty

How does Goods in Transit insurance make your business stand out in the market?

In addition to protecting goods in shipment, Transit insurance can help differentiate your business from other transport operators and add value to your services. You can incorporate it into your services, and doing so will help you reduce business risks, increase your services’ value, and provide your customers peace of mind all at the same time.

If you are a distributor, courier, or removal services provider, and if you operate a business in multiple locations, Goods in Transit insurance can protect your company from the various risks tied to your industry. Talk to an insurance broker via Advisr today to learn more about your policy options.

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General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

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