Goods Damage During Transport: Prevention & Insurance

Introduction

If you ship, deliver, or move goods as part of your business, transport damage is one of those risks that can quietly drain profit. A single incident can mean replacement costs, delayed orders, unhappy customers, and time spent arguing over who is liable.

The good news: most damage is preventable with the right packaging, handling, and carrier controls. And when prevention fails, the right insurance (and the right paperwork) can be the difference between a quick recovery and a painful write-off.

This guide explains the most common causes of goods damage during transport, practical prevention steps, and how UK insurance typically responds.

What counts as “goods damage during transport”?

Transport damage is any physical loss or deterioration to goods while they are being moved between locations. That could include:

• Breakage, dents, scratches, crushing

• Water damage, damp, mould

• Temperature spoilage (chilled/frozen goods)

• Contamination (food, pharma, medical devices)

• Theft-related damage (forced entry, tampering)

• Loss of parts or accessories

It can happen at multiple points: during loading, in transit, at cross-dock hubs, or during unloading and final delivery.

The most common causes of transport damage

Understanding the “why” helps you design controls that actually work.

1) Poor packaging and insufficient protection

Packaging is your first line of defence. Common failures include:

• Boxes not rated for the weight (collapse/crush)

• No internal void fill (movement leads to impact damage)

• Incorrect pallet wrap tension (too loose = shifting; too tight = crushing)

• No corner protection or edge boards

• Reused cartons with weakened structure

2) Incorrect palletisation and load stability

Pallet-related issues are a major driver of claims:

• Overhanging cartons (edges get crushed)

• Uneven weight distribution (tipping)

• Stacking too high for the product strength

• Mixed SKUs with incompatible shapes/weights

• Pallets not suitable (broken boards, wrong size)

3) Handling errors during loading/unloading

Even short drops or impacts can cause hidden damage. Typical causes:

• Forklift tines puncturing cartons

• Pallets dragged rather than lifted

• Goods left unsecured on tail lifts

• Rushed handling during peak periods

4) Vehicle movement and road conditions

Braking, cornering, potholes, and vibration can damage goods even when the driver is careful. Risks increase when:

• Loads are not properly restrained

• There are multiple drops and re-stacking

• The route includes poor road surfaces

• The vehicle suspension is unsuitable for fragile cargo

5) Weather exposure

Rain during loading, condensation in trailers, and temperature swings can cause:

• Cardboard weakening and collapse

• Corrosion on metal components

• Damp damage to textiles, paper, and electronics

6) Temperature control failures

For chilled/frozen and temperature-sensitive goods, damage can occur due to:

• Refrigeration unit failure

• Doors left open during multi-drop deliveries

• Incorrect set points

• Poor airflow around pallets

7) Theft and tampering

Theft is not always “total loss.” It can also mean:

• Broken seals and damaged packaging

• Partial theft (missing items)

• Contamination risk for regulated goods

8) Documentation and labelling problems

Labelling errors can lead to:

• Misrouting and extra handling

• Incorrect stacking (e.g., heavy items on top)

• Failure to keep upright or keep chilled

Prevention: a practical checklist to reduce transport damage

You don’t need a perfect system—just a consistent one. Here are the controls that reduce claims most.

1) Packaging that matches the risk

Choose packaging based on real-world handling

Ask: will this be palletised, hubbed, and reloaded? If yes, design for impacts and stacking.

• Use double-wall cartons for heavier items

• Add internal bracing for fragile components

• Use moulded inserts for high-value items

• Seal properly (tape quality matters)

Use the right void fill

Movement inside a box is a damage multiplier.

• Paper void fill for moderate protection

• Foam or air pillows for lighter items

• Custom inserts for fragile/high-value goods

Consider shock and tilt indicators

For sensitive equipment, indicators can:

• Encourage careful handling

• Provide evidence if mishandled

They won’t prevent damage alone, but they can reduce disputes.

2) Palletisation and load restraint

Build stable pallets

• Keep cartons within pallet footprint (no overhang)

• Use interlocking stack patterns where possible

• Place heavier items at the bottom

• Use slip sheets or anti-slip mats for stability

Wrap and strap correctly

• Stretch wrap with consistent tension

• Add top sheets to protect from dust/water

• Use edge protectors to prevent strap damage

• Use banding/strapping for heavier loads

Use the right pallets

• Heat-treated pallets for export (where required)

• Stronger pallets for heavy or dense loads

• Avoid damaged pallets (splinters, broken boards)

3) Handling controls and training

Standardise loading procedures

Create a simple SOP that covers:

• Forklift approach and tine spacing

• No dragging pallets

• Safe use of tail lifts

• Securing loads before vehicle movement

Train for “hidden damage” risks

Some goods look fine but fail later (electronics, medical devices, precision parts). Train teams to:

• Avoid dropping or throwing cartons

• Keep goods upright if required

• Protect from moisture during loading

4) Carrier selection and service levels

Not all carriers handle goods the same way. When choosing a carrier, ask:

• Do they use hubs (more touches = more risk)?

• Do they offer fragile handling services?

• What are their claims procedures and time limits?

• Do they provide PODs with condition notes?

For high-value or fragile goods, a premium service (or dedicated vehicle) often reduces total cost when you factor in damage.

5) Route planning and delivery practices

• Avoid unnecessary transhipment

• Use fewer drops for fragile loads

• Schedule deliveries to reduce waiting time (less rushed handling)

• Consider “white glove” delivery for sensitive equipment

6) Moisture and weather protection

• Use waterproof pallet covers when loading in rain

• Keep goods off the ground in loading bays

• Use desiccants for moisture-sensitive goods

• Consider sealed packaging for long-distance transport

7) Temperature-controlled transport best practices

If you ship chilled/frozen goods:

• Pre-cool trailers before loading

• Use temperature loggers

• Load to maintain airflow (don’t block vents)

• Agree acceptable temperature ranges in writing

8) Labelling and documentation that prevents mishandling

Clear labels reduce “human error” damage:

• “This Way Up” arrows

• “Fragile” (used sparingly and correctly)

• “Keep Dry”

• “Do Not Stack” where appropriate

Also ensure shipping documents match the physical shipment (weights, quantities, SKU lists).

Who is liable when goods are damaged in transit?

Liability depends on the contract, the Incoterms (for international shipments), and whether you use your own vehicles or a third-party carrier.

In the UK, many carriers operate under standard terms that limit their liability. That means even if they are at fault, the compensation may be capped and may not reflect the full value of your goods.

Key point: liability and insurance are not the same thing. You can be “not liable” and still suffer a financial loss if you need to replace goods to keep a customer.

Insurance options that can cover goods in transit

There are a few common ways businesses insure this risk. The right choice depends on who owns the goods during transit, what you ship, and how often.

1) Goods in Transit Insurance (own goods)

Goods in Transit (GIT) insurance is designed for businesses transporting goods—often their own stock—within the UK.

It can cover:

• Accidental damage during transit

• Theft from the vehicle (subject to security conditions)

• Loading and unloading incidents (depending on wording)

Common buyers include:

• Wholesalers and distributors

• Retailers moving stock between sites

• Trades and contractors carrying materials

• Manufacturers delivering products

Typical considerations

• Single vehicle vs fleet

• Overnight security requirements

• Maximum value any one vehicle carries

• Driver requirements and vehicle security

2) Hauliers’ Liability Insurance (carrying goods for others)

If you transport goods belonging to customers (for hire and reward), hauliers’ liability insurance is often essential.

It generally responds to your legal liability for loss or damage to goods you carry.

Important: because it’s liability-based, it may not pay if you are not legally liable under the contract/terms.

3) Marine Cargo / Transit Insurance (UK and international)

Despite the name, marine cargo insurance typically covers goods in transit by road, rail, air, or sea.

It’s commonly used for:

• Importers and exporters

• High-value shipments

• International supply chains

Policies can be arranged as:

• Annual/open cover (regular shipments)

• Single shipment cover

4) Stock Insurance extensions (including stock in transit)

Some commercial combined or business insurance policies can include stock cover, sometimes with an extension for stock in transit.

This can be convenient, but you must check:

• The transit limit (often lower than on-premises stock)

• Exclusions for unattended vehicles

• Whether it covers third-party carriers

5) Own vehicle / commercial motor considerations

If you use your own vans or HGVs, commercial motor insurance covers the vehicle, not usually the goods. You typically need a separate goods-in-transit section to cover the cargo.

What is typically excluded (or tightly controlled)?

Every insurer and wording differs, but common exclusions/conditions include:

• Inadequate packaging

• Wear and tear, gradual deterioration

• Unattended vehicles (or strict requirements for locks/alarms)

• Theft from an insecure location

• Temperature deviation without evidence of equipment failure

• Certain high-risk goods (e.g., phones, tablets, alcohol, tobacco) unless declared

• Unexplained shortage (items missing with no evidence of theft)

The practical takeaway: prevention and documentation are part of your “insurance strategy.”

How to make a transport damage claim easier (and faster)

When damage happens, speed and evidence matter.

1) Inspect on delivery and note damage immediately

• Photograph the packaging and the goods

• Note damage on the proof of delivery (POD)

• Keep all packaging (don’t throw it away)

2) Record key shipment details

• Consignment note / tracking number

• Date/time of collection and delivery

• Vehicle details (if known)

• Temperature logs (if applicable)

3) Separate salvage and prevent further loss

• Quarantine contaminated goods

• Protect goods from further weather exposure

• Keep damaged items for inspection

4) Report within time limits

Carriers and insurers often have strict notification windows. Late reporting can reduce or invalidate recovery.

5) Keep invoices and proof of value

Insurers typically need evidence of:

• Cost price or sale price

• Replacement costs

• Repair quotes

How much Goods in Transit insurance do you need?

A simple way to think about limits:

• Max value any one vehicle carries (peak load)

• Max value any one consignment

• Worst-case scenario (theft of a full load, or major accident)

Underinsuring is common—especially when businesses grow and start shipping higher-value orders.

Risk management: reduce damage, reduce premiums

Insurers like controls they can verify. If you can demonstrate:

• Documented packaging standards

• Driver training and vehicle security

• Claims history improvements

• Use of tracking/telematics

…you’re in a stronger position at renewal.

Which businesses should prioritise this cover?

Goods damage during transport is a priority if you:

• Regularly deliver goods to customers

• Move stock between sites

• Carry tools/materials that would stop work if damaged

• Ship high-value or fragile products (electronics, medical devices)

• Operate in sectors with strict quality requirements (food, healthcare)

Quick FAQs: Goods Damage During Transport

Is goods damage covered under standard courier compensation?

Often only up to a limited amount and subject to strict terms. It may not reflect the true value of your goods.

Does “fragile” labelling guarantee a claim will be paid?

No. Packaging standards and evidence usually matter more than labels.

If a carrier is at fault, do I still need my own insurance?

Yes, because carrier liability can be limited and disputes can take time.

Are goods covered while loading and unloading?

Sometimes, depending on the wording. Always check the policy schedule and endorsements.

What if goods are damaged due to poor packaging?

Many policies exclude inadequate packaging. Having a packaging SOP helps reduce this risk.

Can I insure international shipments?

Yes—marine cargo/transit insurance is commonly used for imports/exports.

Conclusion

Goods damage during transport is rarely “bad luck.” It’s usually a combination of packaging, handling, and process gaps—plus unclear responsibility when something goes wrong.

Start with prevention: standardise packaging, stabilise pallets, train handlers, and choose carriers that match the risk. Then back it up with the right insurance—goods in transit, hauliers’ liability, or marine cargo—so a single incident doesn’t become a major financial hit.

If you want a quote or a quick review of your current cover, speak to a specialist commercial broker who can match limits and conditions to how you actually move goods day to day.