A mate ran a small operation out of the West Midlands — six vehicles, mixed work, mostly distribution within a 200-mile radius and occasional cross-channel. He had goods-in-transit insurance. Had done for years. Never needed to claim.
Until a consignment of electronics went missing between Birmingham and a depot outside Paris. Twenty pallets in. Fourteen accounted for at delivery. Six pallets of mixed consumer electronics just gone — somewhere between Calais and the depot, is all anyone could say.
The claim took four months. The payout covered part of it. The rest sat in a dispute about the CMR liability cap, the condition of the remaining cargo, and whether the driver had done everything the policy required when the discrepancy was discovered. My mate learned more about goods-in-transit insurance in those four months than he'd ever wanted to know.
Here's the short version.
What GIT insurance actually covers
Goods-in-transit insurance covers loss of or damage to goods while they're being carried on your vehicle. The core events covered are usually theft, accident damage, fire, and in some policies — flooding or water damage. That sounds comprehensive. In practice, there are qualifications on every one of those.
Theft, for example: most GIT policies have conditions around how vehicles must be secured when unattended. Locked cab, locked load compartment, alarmed if that's what the policy specifies. A curtainsider left unlocked at a truck stop where someone slashes the side and takes a third of the load — the claim might be contested depending on what the policy requires and what you can prove about how the vehicle was left. Some policies specifically exclude theft from unattended vehicles unless they're in a secured, lit compound. Read it.
Accident damage: usually covered, but subject to claims procedure. If you have an accident, the goods need to be assessed before they're moved or repossessed if possible. Documentation of damage at the point of accident helps. If the consignee signs for the load without noting the damage and then complains two days later, proving the loss happened in transit becomes complicated.
What GIT doesn't cover:
- Consequential loss — the downstream cost to the customer of not having the goods on time
- Inherent vice — goods that damage themselves due to their own nature (produce that rots, fragile items that break under their own weight)
- Inadequate packaging by the shipper
- Goods not declared at the time of insurance or where the load value exceeds the policy limit
- Deliberate damage by the driver or employees
The policy limit is the one that bites most often. If you've insured for £50,000 per load and the vehicle goes out with £80,000 of pharmaceuticals on, you're self-insuring the difference. Some operators find this out at the wrong moment.
CMR: the cross-border framework that sits on top
For international road haulage, the CMR Convention applies. The Convention on the Contract for the International Carriage of Goods by Road — it's been in UK law since 1967 and Brexit didn't remove it. If you're carrying goods commercially across an international border by road, CMR applies automatically. The CMR note (often called a waybill) is the document that records the contract.
What CMR does is set a framework for who's liable when things go wrong — and cap how much the carrier has to pay.
The liability cap under CMR is calculated by reference to the weight of the goods lost or damaged. The CMR Convention sets the limit in Special Drawing Rights (SDRs), a unit used by the International Monetary Fund. The limit has been the same for decades. The practical effect for operators: CMR liability is often significantly less than the commercial value of the goods lost. A load of high-value electronics where the weight is low relative to the value can leave a large uncovered gap between what CMR says you owe and what the goods were actually worth.
Your GIT insurer will be aware of the CMR cap. Where the loss falls within the CMR cap, the policy may cover it. Where the shipper claims more than the CMR cap — because the goods were declared at higher value — the excess may be subject to a separate claim and separate liability. This is where disputes get complicated.
The CMR note matters separately from the insurance claim. A signed CMR note with no reservations at delivery means the consignee has accepted the goods as they were. A CMR note with reservations noted at delivery — specific description of damage, short delivery, anything wrong — preserves the shipper's right to claim against the carrier. Drivers who get the consignee to sign without noting damage, because it's easier than the conversation, are creating a problem that lands back on the operator months later.
The claims procedure and where operators fall short
GIT policies almost all require prompt notification of loss or damage. 'Prompt' usually means within 24-72 hours depending on the insurer. Missing that window can and does lead to claims being declined — not because the loss didn't happen, but because the delay prejudiced the insurer's ability to investigate.
Documentation requirements: photographs of the load as found, police crime reference number for theft, the CMR note, delivery receipt, driver statement. If any of these are missing, the claim will take longer and may not pay out in full.
What my mate's operation didn't have in place: a documented delivery discrepancy procedure. The driver found the shortfall at the depot on delivery. He told the consignee's warehouse manager. But he didn't note it on the CMR, didn't photograph the remaining pallets, didn't get a written acknowledgment of the shortfall at the depot. By the time the claim was formally lodged and the insurer wanted evidence, the chain of documentation had gaps that were hard to fill four months later.
The insurer covered what they could prove in transit. The rest was disputed. That's the difference between a procedure and hoping for the best.
What to check in your GIT policy before you need it
Vehicle security requirements — specifically what the policy demands for unattended vehicles. If it says alarmed, locked compound, or manned parking — make sure your drivers know that, and make sure you can prove it when it matters.
Per-load limit — is it sufficient for your heaviest or most valuable consignments? Regularly review it. Commodity prices change, load values change.
CMR coverage — does your policy specifically cover CMR liability, or is it listed as an exclusion? Some basic GIT policies don't cover international work at all. Worth checking if your drivers go cross-channel even occasionally.
Subcontractor coverage — if you sub out loads to owner-drivers or agencies, are their vehicles covered under your policy or do they need their own? The answer varies. Some policies cover subcontractors automatically. Some don't.
Claims procedure — read it before you need it. Know the notification window. Know what documentation you need to gather.
For agency and owner-drivers: your personal exposure
If you're an owner-driver carrying goods for hire-and-reward, you need your own GIT cover. The operator's policy covers the operator's exposure. It doesn't necessarily cover yours. If you're an agency driver in someone else's vehicle, the operator should have GIT — but if you're responsible for securing the load and you fail to do so, you may have personal exposure. Read your agency contract carefully on this.
The short version: GIT is a useful product, but it's a commercial insurance policy written to benefit the insurer as well as the policyholder. Understand what it covers, keep the documentation in order, and don't assume the policy will deal with everything automatically when a load goes wrong.
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