Goods in Transit Insurance – Motor Trade
Where insurance cover is required for property in transit, goods in transit insurance usually provides the solution.
Some motor trade insurance policies automatically provide a limited amount of cover for ‘stock’ in transit however, this will generally only relate to property or stock which is owned by the policyholder.
What is stock?
Stock can be your own parts or vehicles being carried in or on a van, transporter, recovery truck or trailer. ‘Goods’ in transit will represent both your own and property in your custody or control which you are responsible for, such as a customer vehicle for example.
Not that straight forward though in respect of vehicles
With certain insurers, vehicles that are in transit where the wheels are not touching the road, would NOT be covered under the road risks section of the motor trade policy.
The cover needed is all dependent on how your business operates, if you are just a service and repair garage that occasionally tows in a vehicle then this is generally fine, as far as the insurance company is concerned this is all one vehicle essentially.
If you are a body shop you may have a vehicle that is used for recovery purposes, if this is a flat bed or similar type of vehicle then you need to ensure that the vehicle you have on the back of your recovery truck is covered by the goods in transit insurance under your policy. Some policies automatically give this cover to a specified limit, some don’t give any cover at all and you have to but the cover as a separate cover item.
Don’t just assume that vehicles are automatically covered!
On a similar note, most motor trade insurance policies exclude transporters that can carry more than 2 vehicles at any one time.
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