Everything You Need To Know About Transit Insurance

Transit insurance, which is also known as goods in transit insurance, is a type of insurance policy that secures goods that are in transit from one place to another. The main goal of this insurance policy is to offer coverage in case the goods are damaged or lost during the trip.

What Is Covered In Transit Insurance? 

Here are some of the incidents that are covered in transit insurance: 

• Damage to goods caused by Earthquakes

• Damage to goods caused by Explosion 

• Damage to goods caused by Fire 

• Damage to goods caused by Lightning 

• Damage to goods caused by any sort of natural or man-made calamity

• Damage to goods caused by overturning of the transport vessel

• Damage to goods caused by the sinking of the vessel

• Accidental damages

• Malicious damages

• Impact damage

• Theft of goods 

Please do keep in mind that this is not a full list of things that are covered in transit insurance. 

Who Needs To Purchase Transport Insurance?

Most of the time, Truck Insurance HQ, the leading truck insurance provider in Australia, would suggest you to purchase transport insurance if you are a business owner or an individual who is frequently involved in regular transportation of goods.

If you are in a profession that is listed below, you need to purchase transport insurance: 

• Manufacturer of covered goods

• Importer of covered goods (check list of goods that are not covered in transit insurance)

• Exporter of covered goods

• Trader of covered goods

• Transporter of covered goods

• Aggregator of covered goods

• Custom house agents of of covered goods

What Are The Goods That Are Not Covered In Transit Insurance?

Please do keep in mind that there are a number of items that are currently not covered by transit insurance. 

Here are some of those items: 

• Livestock

• Cigarettes

• Wines

• Antiques

• Tobacco

• Paintings

Please do note that this is not a complete list of items that are not covered in transit insurance. 

Are Partial Loses Covered In Transit Insurance? 

Yes, in transit insurance you will get coverage even if the goods are partially damaged. The insurance company that sold the policy to you is responsible to cover the financial loss that you have suffered even if the good/good were partially damaged. 

What To Do If You Want To Make A Claim?

If you are going to make a claim, you would need to have the following documents: 

• Invoice of the goods that were inside the package

• Bill of lading

• The claim form (should be filled and signed)

• Survey report

• Shipping details

• Documents required by the insurance company 

Please do note that the claim process varies from company to company.

How Much Do You Have To Pay For Goods In Transit Insurance? 

The amount that you would have to pay depends on a number of factors, which includes: 

• Types of goods being insured 

• The trip

• How the goods are packed 

• Types of covers (the better the coverage, the higher the premium will be)

• benefits required (the better benefits, the higher the premium will be)

• The maximum limit per conveyance

• The estimated annual turnover

Please do note that the premium also depends on which country you are in and where the package is heading to.

What Is Not Covered Under Goods In Transit Insurance? 

Most of the insurance companies do not cover damages that are caused by strikes, riots, and civil commotion.

Here are some major exclusions under the goods in transit insurance:

• No coverage if there is willful misconduct of the assured

• Loss of or damage such as wear and tear, loss in weight or volume

• Dishonesty of any employee or servant of the assured 

Note: This is not a full list of major exclusions under the goods in transit insurance. Also, the exclusions depend on the company that you are going with.