What is goods in transit (GIT) insurance and why do you need it?
If you’re driving a vehicle for business, you might need more than just a standard insurance policy. It’s critical that you have coverage that satisfies both your business demands and your legal obligations, and one of the most crucial factors to consider is any goods you transport.
What is goods in transit (GIT) insurance?
Simply put, goods in transit insurance/cover protects items/load carried in your vehicle as part of your business operations, including both your own goods and those of others. With goods in transit insurance, you can be rest assured that if your items are lost, stolen, or damaged in any way while in transit, your liability for the loss can be claimed against your insurance policy(subject to the terms and conditions of the policy wording).
Why do I need goods in transit (GIT) insurance?
If you use your vehicle to transport goods, you will most likely fall into one of the following categories:
- Carriage of own goods entails driving your vehicle to deliver and transport business-related goods to your clients.
- Haulage entails driving your vehicle to deliver and transport goods for third parties.
If you work as a courier or in the transportation industry, goods in transit insurance is essential. Because you won’t be transporting your own items, the financial consequences could be more severe than usual; it pays to be prepared.
Most clients will expect you to have some sort of goods-in-transit insurance, so it’s crucial to invest both for your reputation and for the sake of your business. If you’re not adequately insured, you might not be able to secure any business or contract without some form of protection; simply think about the cost of the things you’re transporting to understand how important this type of insurance can be.
If you’ve realised that goods in transit insurance is right for you, make sure you receive a coverage that is tailored to your specific needs. Look for a quote that’s targeted to your specific business, and never compromise on coverage – it’s always better to be over insured than underinsured, and if you think you’ll be transporting products worth thousands of rands (high value cargo), make sure you tell your insurer. You’ll be held accountable for the cost of any damage to goods that don’t fit inside your insurance policy limit if you don’t have enough coverage, so finding the correct level of coverage for your business is critical.