What is Goods in Transit Insurance?
Goods in Transit Insurance is an insurance product that covers the risk of loss of or damage to goods while they are being moved from one location to another—whether by road, sea, or air.
It provides financial protection to cargo owners, exporters, importers, and logistics operators against unforeseen events that may affect the integrity of the shipment throughout the supply chain. It is an essential component of international trade, helping ensure financial security and continuity in import-export operations.
Goods in Transit Insurance may be issued for a single shipment (*single transit*) or as an annual policy (*open cover*), offering flexibility based on trading volume.
The insured value is generally based on the commercial invoice value, plus transport costs and a percentage for anticipated profit. Coverage may be tailored to the terms of international trade contracts (INCOTERMS), which define the parties’ respective responsibilities for insuring the goods.
Depending on the policy terms and the selected clauses (e.g., Institute Cargo Clauses A, B, or C), this insurance may cover:
Depending on the mode of transport, the relevant coverage is provided:
Covers risks arising during transportation by truck, vehicle, or rail, including road accidents, vehicle overturning, fire, and cargo theft.
Provides protection against maritime risks such as sinking, vessel collisions, storms, water damage to cargo, and general average, in accordance with international maritime rules.
Covers damage or loss occurring during transportation by air, including aircraft accidents, damage during loading or unloading, and exposure to extreme cargo-handling conditions.
