What Is Road Freight Insurance?

Road freight insurance is a broad term used to describe insurance that protects goods while they are being transported by road. Depending on the policy type, it can cover:

• The goods themselves (loss or damage while in transit)
• Your legal liability as a carrier/haulier for loss or damage to customers’ goods
• Associated costs such as debris removal, re-delivery, or emergency storage (policy dependent)

In practice, most UK road freight arrangements involve a combination of covers, because your exposure is rarely just one thing. You might be liable under contract even if you weren’t negligent, or you might face a claim for consequential loss even when the goods value is relatively low.

Road Freight Insurance vs Goods in Transit vs Carriers Liability: What’s the Difference?

These terms are often used interchangeably, but they can mean different things depending on the insurer and the contract you’re working under:

1) Goods in Transit Insurance (GIT)

Goods in transit insurance is typically focused on the physical loss or damage to goods while they are in your care, custody, or control during transit. It can sometimes extend to:

• Loading and unloading
• Temporary storage during the journey
• Goods in vehicles overnight (subject to security conditions)

2) Carriers Liability Insurance

Carriers liability insurance is designed to cover your legal liability for loss or damage to goods you carry for others. This is particularly important when you operate under specific trading conditions or conventions.

3) Own Goods in Transit

If you transport your own stock or tools (rather than customers’ goods), you may need own goods in transit. This is common for:

• Manufacturers delivering finished products
• Wholesalers and distributors
• Retailers making deliveries
• Trades and contractors moving materials to site

The right solution depends on whether you carry your own goods, third-party goods, or a mix—and what your contracts say you are responsible for.

Who Needs Road Freight Insurance in the UK?

If your business involves transporting goods by road, you should assume you need some form of road freight cover. Common examples include:

• Haulage companies (HGV operators, general haulage, specialist haulage)
• Courier firms (same-day, multi-drop, parcel delivery)
• Logistics providers (3PL, warehousing + transport)
• Owner-drivers working under contract to larger operators
• Refrigerated transport (chilled/frozen foods, pharmaceuticals)
• Construction and plant logistics moving materials and equipment
• Retail delivery fleets (furniture, appliances, white goods)

Even if your customer “has their own insurance”, you can still be pursued for loss or damage if the contract places responsibility on you, or if their insurer seeks recovery from the carrier.

What Does Road Freight Insurance Typically Cover?

Cover varies by insurer and policy wording, but a well-structured UK road freight insurance policy can include:

Loss or Damage to Goods

• Theft from vehicle
• Accidental damage (impact, crush damage, water ingress)
• Fire
• Collision/overturning
• Damage during loading/unloading (if included)

Goods in Vehicle Overnight (Subject to Conditions)

Many claims disputes happen here. Insurers often require:

• Vehicle locked and alarmed/immobilised
• Keys removed and secured
• Parking in a locked compound, secure yard, or approved truck stop
• No unattended vehicles in high-risk areas

Temporary Storage

Some policies extend to goods temporarily stored during the journey, such as cross-docking or short-term holding—usually with strict limits and security requirements.

Refrigerated Goods & Temperature Control (If Added)

If you carry chilled or frozen goods, standard GIT may not automatically cover spoilage. You may need specific extensions for:

• Refrigeration unit breakdown
• Temperature deviation
• Power failure
• Contamination risks (policy dependent)

Debris Removal and Mitigation Costs (Policy Dependent)

After an accident, you may need to secure the load, arrange recovery, or prevent further loss. Some policies help with reasonable mitigation costs—others don’t.

Key Exclusions and Common “Gotchas”

Road freight insurance claims are often rejected not because the business did anything “wrong”, but because the policy conditions weren’t met or the goods weren’t covered as declared.

Unspecified or “High-Risk” Goods

Insurers may exclude or restrict cover for certain goods unless declared, such as:

• Alcohol and tobacco
• Mobile phones, laptops, consumer electronics
• Pharmaceuticals and medical devices
• High-value designer goods
• Cash, jewellery, precious metals

Unattended Vehicle Theft Conditions

Theft claims frequently hinge on where the vehicle was parked, how long it was unattended, and whether security requirements were followed.

Inadequate Packaging or Poor Load Securing

If goods are damaged due to poor packaging, insufficient strapping, or improper load restraint, insurers may argue the loss was avoidable.

Wear and Tear / Mechanical Breakdown

Standard policies usually won’t cover loss caused purely by wear and tear or mechanical failure—unless you have specific extensions (especially for refrigerated transport).

Delay, Consequential Loss, and Contractual Penalties

Many policies cover the value of the goods, but not the knock-on costs. If a customer claims for:

• Lost production time
• Missed retail windows
• Contractual penalties

You may need separate cover or carefully negotiated contract terms to manage that exposure.

How Much Road Freight Insurance Do You Need?

A practical way to structure limits is to work backwards from your maximum exposure:

• Maximum value any one vehicle carries (single load limit)
• Maximum value any one item/package (single item limit)
• Annual turnover carried (used by insurers to rate risk)
• Number of vehicles and drivers
• Territory (UK only vs UK & EU)

Underinsuring is risky because some policies apply “average” (proportional settlement). That means if you insure for less than the actual value, the insurer may reduce the claim payment.

What Affects the Cost of Road Freight Insurance in the UK?

Premiums are based on your risk profile. Insurers typically look at:

• Type of goods carried (general haulage vs high-value goods)
• Vehicle type (van, rigid, articulated, curtain sider, box, refrigerated)
• Security measures (alarms, trackers, immobilisers, secure yards)
• Claims history (frequency and severity)
• Driver experience and vetting procedures
• Overnight parking arrangements
• Routes and operating areas (theft hotspots, motorway services, ports)
• Contract terms (who is liable, limits of liability, exclusions)

A strong risk management approach—documented procedures, security controls, driver training—can make a meaningful difference to both premium and insurer appetite.

How to Choose the Right Road Freight Insurance Policy

The best policy is the one that matches how you actually operate day-to-day. Before you buy, clarify:

• What goods you carry (and what you never carry)
• Typical and maximum load values
• Where vehicles are parked overnight
• Whether drivers ever leave vehicles unattended (and where)
• Whether you subcontract (and how you control subcontractor insurance)
• Whether you do multi-drop courier work (higher theft exposure)
• Whether you carry temperature-controlled goods

Don’t Ignore Policy Conditions

Conditions are not “fine print”—they are often the difference between a paid claim and a declined claim. If your business can’t realistically comply with a condition (for example, “no unattended vehicles ever”), you need a policy that fits your reality.

Check Your Contractual Liability

Many disputes come from contract terms that push liability onto the carrier. If you sign contracts with broad liability clauses, you may need higher limits or specialist liability cover.

Claims: What to Do If Goods Are Lost or Damaged

When a loss happens, speed and documentation matter. A sensible claims approach includes:

• Notify your insurer/broker immediately (don’t wait for the customer to escalate)
• Secure the scene and prevent further loss where safe to do so
• Take photos of damage, packaging, seals, and vehicle condition
• Keep delivery notes, PODs, and route details
• Report theft to the police and obtain a crime reference number
• Preserve CCTV where available (yards, depots, service stations)

Your insurer will usually want evidence of compliance with security conditions, especially for theft claims.

Frequently Asked Questions (FAQ)

Is road freight insurance legally required in the UK?

Road freight insurance itself is not a legal requirement in the same way that motor insurance is. However, it is often a contractual requirement from customers, and operating without it can expose you to serious financial risk.

Does my motor insurance cover the goods I’m carrying?

Usually not. Commercial motor insurance covers the vehicle and third-party liabilities on the road. Goods carried typically require separate goods in transit/road freight cover.

What’s the difference between “any one vehicle” and “any one claim” limits?

“Any one vehicle” is the maximum value covered on a single vehicle at any one time. “Any one claim” is the maximum payable for a single incident. A good policy will clearly define both.

Will my policy cover subcontractors?

Not always. Some policies exclude subcontracted work unless specifically declared. If you use subcontractors, you may need contractual controls and proof of their insurance.

Can I cover high-value loads?

Often yes, but high-value goods may require higher premiums, tighter security conditions, trackers, and specific underwriting approval.

Does road freight insurance cover international work?

Some policies can extend to UK & EU or wider territories, but you must declare where you operate. International carriage may require different liability arrangements and limits.