CivilCovered

Project insurance

Goods in transit insurance for construction materials and equipment

Goods in transit insurance is designed to respond to loss of or damage to goods while they are being carried, loaded and unloaded, subject to policy terms. It matters to contractors because the policy that insures the works or the plant often says little about the journey.

Cover is subject to underwriting and policy terms. CivilCovered arranges insurance; it is not an insurer.

Arranged case by case

We arrange this cover case by case. Whether it can be placed depends on your risk details, the insurer’s appetite and underwriting.

What goods in transit insurance is

Goods in transit insurance covers your financial interest in goods while they are being moved from one place to another, typically by road. It can apply to goods carried in your own vehicles or goods handed to a transport company, depending on how the policy is written.

For construction businesses the goods are usually materials and equipment: pipes, precast units, steel, cement, aggregates, formwork, small plant and tools. The policy defines the start and end of the journey, which often includes loading and unloading, and states what happens when a load is left overnight or transferred between vehicles.

Cover is arranged on an annual basis for regular movements or for a specific journey. The sum insured, the limit per vehicle and the conditions on the way goods are secured are central to the quotation.

Who may need goods in transit insurance

  • Contractors who move materials from suppliers or depots to site with their own vehicles.
  • Contractors who use transporters and want to understand how far the carrier’s own liability goes, since carriers usually limit their liability in their terms.
  • Businesses that move precast, steel or pipe sections that are heavy, awkward to secure and expensive to replace.
  • Plant owners who transport machinery on low-beds between sites and want clarity on loading and unloading risks.
  • Subcontractors whose contracts require them to insure their own materials until they are incorporated into the works.

What may be insured, subject to terms

Construction materials
Cement, aggregates, steel, pipes, precast units and similar materials while being carried to site or between yards, subject to how they are packed and secured.
Equipment and tools
Small plant and portable equipment moved between sites. Larger machines are usually dealt with under a plant policy, which may or may not include transit.
Loading and unloading
Many policies include loading and unloading at the start and end of the journey. Check whether cranes and hiabs used for this are treated differently.
Own vehicles and hired transport
Cover may differ depending on whether the goods travel in your own vehicle, a transporter’s vehicle or a courier’s.
Specified journeys or annual movements
Some businesses insure a declared annual value of goods moved, others a single high-value load. The basis affects how the premium is calculated.

Important limitations and questions to discuss

Packing and securing
Policies typically expect goods to be properly packed and secured for the journey. Loss caused by poor loading or lashing may be excluded.
Unattended vehicles
Cover for theft from an unattended vehicle is frequently conditional on the vehicle being locked, parked in a secure place or fitted with a tracking device.
Theft and hijacking
Ask how theft, hijacking and attacks on vehicles are treated, including any conditions about routes, driver numbers and tracking.
Overloading and unroadworthy vehicles
Loss arising when a vehicle is overloaded or unroadworthy may be excluded.
Limits per vehicle
A single truck can carry a very high value. Check the maximum insured per vehicle or per conveyance and what happens when it is exceeded.
Carrier’s liability
Transport companies’ own liability is usually limited by their terms. Insurance on your own goods does not alter what the carrier owes you, and the insurer may pursue the carrier after paying a claim.

Which policy section responds to what

Contractors often assume that one policy covers every stage of a project. In practice, the point in the journey from supplier to completed works determines which policy is relevant. The table below is a general guide; your policies may be arranged differently.

Where a loss might be addressed
SituationPolicy section usually consideredWhy
Pipes damaged when a delivery truck overturns on the way to siteGoods in transitThe goods were moving and had not reached the site. The vehicle itself would be a fleet matter.
Precast units damaged while being offloaded at the site gateGoods in transit or contract worksDepends on whether the policy treats unloading as part of the journey and when the materials are deemed to be on site.
Stockpiled steel stolen from a fenced site storeContract works, subject to security conditionsThe materials had arrived on site and form part of the insured works.
An excavator damaged while being loaded onto a low-bedPlant policy, if transit and loading are includedPlant cover varies on whether it extends to loading, transit and unloading.

These examples show how responsibility may be divided. They are not statements that any particular policy will respond.

Information we usually need for a quotation

To prepare a goods in transit quotation we normally ask about what you move, how you move it and what security you use.

  • The types of goods and the highest value carried in a single vehicle.
  • Your annual value of goods moved, or the value of the specific shipment you want to insure.
  • Your own vehicles and drivers, or the transporters you use and their terms.
  • Typical routes and distances, and whether goods are left overnight on vehicles.
  • Security measures: tracking, locking systems, secure yards and driver procedures.
  • How goods are packed and secured, and who loads and unloads.
  • Your claims history and any existing transit policy.

You do not need everything on day one. A short description of the work is enough to start, and the quote form only asks for the details relevant to your enquiry.

Frequently asked questions

Does my Contractors All Risk policy cover materials on the way to site?

Often not, or only in limited circumstances. Contract works policies usually start to respond once materials are at the site, so the journey from supplier to site may need separate cover. Confirm this against the wording.

Does goods in transit insurance cover the vehicle?

No. It addresses the goods being carried. The vehicle itself is a matter for motor or fleet cover.

If I use a transporter, do I still need my own cover?

A transporter’s liability is normally limited by its terms and may not cover the full value of your goods or every cause of loss. Your own policy addresses your interest in the goods. Ask us to review the carrier’s terms.

Ready to talk through your cover?

Tell us about your work and your contract’s insurance requirements. We will review them and help arrange suitable cover.

Submitting an enquiry or requesting a quote does not put cover in place. Cover is subject to underwriting and policy terms.

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