Shop insurance – goods in transit cover
What’s included in a standard policy
Cover for shops and retailers is provided by many UK business insurance companies. For the majority, cover is provided under a shop insurance package.
As we’ve mentioned before, these policies include the main covers a shop may need. One of these is Goods in Transit.
Why do we need goods in transit cover
Your shop insurance policy should include cover for stock and business equipment at the risk address. If the stock is not in the business premises, cover may not apply. Typical scenarios where cover may not apply are if you undertake deliveries, or collection, of stock. If the stock is stolen or damaged, whilst being transported, you’ll want to be covered.
What cover is usually provided
Shop insurance policies usually include limited, or standard cover. A typical amount is up to £2,000 whilst transported in your own company vehicles. There may be what called an ‘inner limit’ within this. This will usually apply to theft attractive items, such as wines, spirits or tobacco.
Will my van insurance provide cover
There are very few commercial vehicle insurance policies that extend to include goods in transit. Many people do believe they have this cover. If you check your vehicle policy, you’re more likely to not have this cover. If you deal through a business insurance broker, they’ll check this for you.
Standard cover and vehicles included
We’ve mentioned above that a standard shop insurance policy will include cover for your own vehicles. Policies are usually quite wide in their definition of vehicles. One that is owned, hired or leased to the business is included. This definition will apply to the insured party, whether a sole trader, partnership or limited company.
Mainstream insurers don’t ordinarily ask for proof of ownership. The cover is not meant to extend to any friends and family collecting or delivering goods on your behalf though.
Which vehicles are excluded
Goods being moved by third party couriers aren’t usually included. If you are using a courier, maybe for long range deliveries, they may allow you to buy insurance.
Can I extend cover for third party vehicles
Most shop insurance package polices do not allow the option of extending cover. We’ve said before that the best way to arrange cover is through a business insurance broker. When you’re looking to extend cover in this way, this is where a broker is beneficial. Your broker may be able to request a specific extension, for goods carried by couriers. They’ll need some additional information and it’s best to phone to discuss.
What if I cannot extend cover?
If your shop policy cover cannot include couriers, you have a couple of main options. Firstly, you can buy cover from the courier. Secondly, if you have many consignments through couriers, you can get a separate goods in transit policy. Most brokers will be able to discuss an annual policy with you.
When is cover excluded
Every insurers policy will have different terms and conditions. Most will have similar exclusions. Theft from an unlocked vehicle is excluded. As well as this, theft is excluded from unattended vehicle at night. Night time is usually defined as between 9pm and 6am. Whether it is light or not is immaterial. Cover should apply when the vehicle is in a locked building.