We’ve heard of marine insurance; but does the delivery of goods by road also require insurance? The answer to that would be in the affirmative; as even though in transit insurance policy delivery is by land; it doesn’t mean it is not free of risks, and can in fact be of substantial value for some companies or people.
What is it?
Transport insurance policy or inland transit insurance is a simple and convenient mode of covering the risk of business goods or personal belongings of the insured’s while in transit on land. Its premium is based on the value of goods in transit; and the amount of risk the insured is bearing during that period.
This insurance covers the packing and unpacking, loading or offloading, transportation and storage of goods during the entire move.
It covers damage/loss of goods due to mishandling or accidents, explosions, impact fires, theft, and malicious damage during transport.
Who should take it?
The policy is beneficial to those who regularly transport goods over large or small distances. For those individual where materials or stock is an essential asset of their business and it is important it is protected during transport; then a transit insurance policy helps insure them against loss, damage or theft when the goods are being transported. So if you are retailer who depends on a third party courier for transporting your goods, or a tradesman transporting expensive tools and materials from one place of work to another, then this policy will help you protect the long term security of your business.
What to look for while taking the policy?
When you are taking the policy it is important to be clear about what the policy includes and that it matches with the risks involved while transporting the goods. If you are unaware of your policy coverage, ask your insurer for a breakdown to ensure you have the right cover. Few typical inclusions of the policy generally include- loss of goods, theft of goods, damages, delays cause, etc – caused during transport of the goods.
Different types of cover
Vehicles overnight cover– some providers also offer a cover where you get an overnight cover as standard and some provide it with an extra payment. Check if your policy covers storing tools or goods in your vehicle overnight.
Multiple vehicles with only one policy cover- It is possible at times that the provider will cover multiple vehicles with only one policy and also offer a good rate. If your business has more than one vehicle requiring insurance, this cover can save time and cost.
Goods in Transit Insurance (own vehicles)– It covers transit risks and theft of goods in any owned or operated vehicle. However, it is not limited to a specific vehicle. It is a simple and inexpensive cover. It mainly suits smaller businesses and farmers with one or more vehicles used for collection and delivery of goods.
Goods in Transit (carriers) Insurance– This policy enables carriers to manage commercial settlements with customers. It covers loss or damage to insured goods or livestock. Policy provides two types of cover. Comprehensive coverage, protects against all losses or damage, while specific event coverage includes damages caused by major events. This coverage can also be extended to include theft, non-delivery, and other similar circumstances.
Specified Items in Transit Insurance – It’s commonly used for trade tools like mechanical equipment, electronic devices, musical instruments, and computers. Tradesmen, professional individuals, small businesses, sporting groups, schools, associations, and more find this policy suitable. This policy is simple and taken annually to cover major transit risks. It also covers risks like theft and damages for goods regularly transported on registered vehicles or trailers.
Benefits provided
- It is the most simplest and convenient way of covering inland transits or exports to FOB point.
- The policy offers coverage options for all risks or major perils, tailored to your business needs.
Finding the best deal
The best deal is one that offers the right cover at the lowest cost possible. Always check your policy’s special features and exclude irrelevant coverage to align with your business needs. If your policy covers nationwide fresh food and beverage goods but you sell only cutlery in Maharashtra, it’s excessive coverage. It is advisable to consider altering the policy to save costs. Additionally, checking with your insurer about optional features and included standard features can help reduce expenses. Finally, Checking with your insurer about optional and standard features can help lower costs.
