Goods in Transit & Distribution Risk Insurance

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Specialist cover for food and drink businesses shipping ingredients and products – including temperature risk, theft and damage in transit

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We compare quotes from leading insurers

  • Allianz
  • Aviva
  • QBE
  • RSA
  • Zurich
  • NIG

GOODS IN TRANSIT INSURANCE THAT HELPS YOU TAKE OFF

Why Goods in Transit Insurance Matters for Food Businesses

For food and beverage manufacturers, the journey from your facility to the customer is a critical part of your risk profile. Whether you deliver pallets to wholesalers, distribute chilled goods to retailers, or ship ingredients between sites, transit incidents can be expensive and operationally disruptive.

A single theft from a vehicle, an accident damaging a load, or a temperature excursion in a refrigerated van can lead to lost stock, re-delivery costs, retailer chargebacks and missed delivery windows. Goods in transit and distribution risk insurance helps protect the value of your products while they’re on the move - and supports business continuity when distribution problems happen.

What is Goods in Transit & Distribution Risk Insurance?

Goods in transit insurance is designed to cover loss of or damage to your goods while they are being transported. For food and drink businesses, the key is ensuring the policy reflects the realities of your distribution: chilled and frozen loads, strict delivery windows, high-value ingredients, and varied carrier arrangements.

Cover can be arranged for your own vehicles, employees and drivers - and (in many cases) for goods carried by third-party hauliers, couriers or multi-drop distribution networks, depending on how your contracts are structured. It can also be tailored to cover goods in storage during transit, such as overnight stops or cross-docking at distribution hubs (subject to policy terms).

Insure24 helps food manufacturers structure goods in transit cover alongside property/stock, product liability and spoilage options, so you’re not left with gaps between “warehouse” and “customer”.

  • Theft – from vehicles, trailers, or during stops (subject to security conditions)
  • Accidental damage – collisions, rollovers, load shifts and impact damage
  • Fire – vehicle fires and cargo damage
  • Loss in transit – missing consignments, misdelivery (policy dependent)
  • Temperature / refrigeration risk – where arranged, for chilled/frozen goods
  • Loading & unloading – damage during handling (where included)
  • Overnight / temporary storage – cover can be extended for storage in transit
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Who Needs Goods in Transit Insurance?

Any food or beverage business that moves goods outside its premises can benefit from goods in transit cover. It becomes essential when you self-deliver, distribute high-value products, or supply customers that demand strict delivery performance and traceability.

Even if you use third-party carriers, you may still be financially responsible for goods until they’re delivered - depending on contract terms and Incoterms. That’s why it’s important to review who carries the risk during transit.

Common insured businesses

  • Food manufacturers delivering to retailers, wholesalers and hospitality
  • Chilled and frozen distribution fleets
  • Ingredient suppliers and bulk distributors
  • Artisan brands shipping direct-to-consumer (D2C)
  • Co-packers moving goods between sites and fulfilment centres
  • Exporters using consolidators and freight forwarders

Situations where cover is often needed

  • Multi-drop deliveries with frequent loading/unloading
  • Overnight stops, cross-docking or hub-and-spoke distribution
  • High theft-risk routes or high-value loads
  • Retailer chargebacks for missed slots or damaged pallets
  • Temperature-sensitive loads requiring strict cold-chain evidence
  • Courier parcels and small consignment shipments
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Cold-Chain & Temperature Control Risks

For chilled and frozen food, transit risk is not only about theft and accidents - it’s also about temperature control. A short refrigeration outage, a door left open, or a breakdown on the motorway can turn a valuable load into a total loss.

Temperature-related claims can be highly evidence-driven. Insurers often require monitoring logs, maintenance records, alarm systems and documented operating procedures. We help you set up cover that matches your fleet reality and the expectations of your customers.

Common cold-chain incident triggers

  • Refrigeration unit breakdown or power failure
  • Temperature excursions during traffic delays
  • Human error (doors left open, set points changed)
  • Incorrect loading (warm product into a cold trailer)
  • Seal failure leading to warm air ingress
  • Unplanned overnight parking without monitored power

Evidence and controls insurers like to see

  • Temperature logging (vehicle and product where relevant)
  • Preventative maintenance and servicing schedules
  • Driver training and SOPs for cold-chain handling
  • Alarm systems and escalation/call-out procedures
  • Secure parking policies for high-value loads
  • Clear records of delivery slot times and delays
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Contracts, Responsibility & Distribution Risk

A common issue is assuming that a courier or haulier is “responsible” for goods during transit. In reality, your sales contracts, delivery terms, and customer agreements determine who bears the risk - and how quickly you must replace stock to avoid penalties.

Goods in transit insurance can be tailored depending on whether you deliver on your own fleet, use subcontracted hauliers, or ship goods via couriers and pallet networks. We’ll help you identify where responsibility sits and structure cover accordingly.

Common distribution models

  • Own vehicles and employed drivers
  • Mixed fleet with hired-in vehicles and agency drivers
  • Third-party hauliers moving palletised loads
  • Courier parcel shipments and D2C fulfilment
  • Export shipments via freight forwarders

Distribution risk considerations

  • Maximum load value and single conveyance limits
  • Territorial limits (UK only vs EU/worldwide)
  • High theft risk goods and security conditions
  • Temperature-controlled goods and policy triggers
  • Handling damage at customer premises (loading/unloading)
  • Retailer chargebacks and delivery slot performance (usually excluded unless arranged)
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Reducing Goods in Transit Risk

Good insurance is important - but insurers also reward strong controls. Better security, documentation and procedures reduce the likelihood of losses and make claims easier to evidence. For food businesses, good transit controls also protect customer relationships and contract renewals.

Security controls

  • Driver vetting and training
  • Secure overnight parking policies and route planning
  • Vehicle tracking and geofencing (where appropriate)
  • Locks, seals and tamper-evident procedures
  • Two-person deliveries for high value loads (where relevant)

Cold-chain controls

  • Pre-cooling trailers and correct loading procedures
  • Temperature logging and alarm escalation
  • Regular servicing of refrigeration units
  • Clear SOPs for delays, breakdowns and salvage
  • Documentation for delivery windows and receiving checks
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Why Choose Insure24

Goods in transit insurance is often misunderstood - especially for food businesses with cold chain exposure, mixed carrier models and high retailer expectations. We help you set the right limits, match cover to your contracts, and avoid common gaps between warehouse, vehicle and customer delivery.

  • Specialist food & distribution risk knowledge
  • Support setting realistic load values and territorial limits
  • Options for chilled/frozen temperature extensions
  • Clear guidance on conditions (security, parking, logs)
  • Claims support if something goes wrong on the road
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“We had a high-value chilled load delayed in traffic and faced a potential write-off. Insure24 helped us add the right temperature extension and clarify the evidence we’d need in a claim.”

Logistics Manager, UK Food Manufacturer

FREQUENTLY ASKED QUESTIONS

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What does goods in transit insurance cover?

Goods in transit insurance covers loss of or damage to your goods while they are being transported, typically including risks like theft, accident damage and fire. Cover can be tailored based on your delivery model (own vehicles, hauliers, couriers) and may include loading/unloading and temporary storage in transit, depending on the policy.

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Can goods in transit cover chilled and frozen temperature losses?

Yes, but temperature-related cover usually needs a specific extension and may come with conditions. Insurers often expect temperature monitoring, maintenance logs for refrigeration units, and documented procedures for dealing with delays and breakdowns.

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Do I need goods in transit insurance if I use a courier or haulier?

Often, yes. Your contract terms determine who carries the risk while goods are in transit. Even if a third party is transporting your goods, you may still be financially responsible for replacement stock, missed delivery slots, and customer relationships. We can help align cover to your contractual responsibilities.

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What limits should I choose for goods in transit?

Limits are usually based on your maximum value of goods carried in any one vehicle at any one time (single conveyance limit). You should consider peak periods, high-value customers, and whether you carry mixed loads. Territorial limits (UK-only vs EU) also affect policy design.

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How much does goods in transit insurance cost?

Premiums depend on the value of goods carried, vehicle security, delivery model, claims history, routes, overnight parking practices, and whether you need temperature extensions for chilled/frozen loads. Contact Insure24 for a tailored quote.

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Does goods in transit cover retailer chargebacks and missed slots?

Typically, chargebacks and contractual penalties are excluded unless specifically agreed. However, goods in transit insurance can protect the physical value of your goods, and business interruption or specialist extensions may help cover some financial impacts depending on the circumstances and policy wording.

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