Truck Insurance Goods In Transit

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Goods in transit is a term you will hear banded about in the Truck Insurance world.  It is one element that needs to be carefully considered when putting together the perfect insurance policy to meet your needs.  As well as insuring the actual truck you do need to consider the cargo you are transporting.  There are four main things to cover (both while in transit and parked).

So before you sign up to any policy check the ‘goods in transit’ part of the insurance to ensure that all of the above are covered. There are endless potentially negative scenarios that can be imagined relating to your goods in transit, but what you need to remember is once loaded into your vehicle you have liability to your client should any problems occur.  Your liability is simply the value of the goods you have onboard.

How you choose to protect this liability is up to you, but there are some general industry normal practices to hep you make a decision.  When operating with the UK, the two main approaches are full value insurance or signing up to a conditions of carriage.

 

Full value insurance is basically as it sounds, the Truck Insurance insurance company will term this approach as either ‘Full Responsibility’ or ‘All Risks’. Customers opting for this cover will tend to be at completely opposite ends of the spectrum.  For those involved in construction materials, quarry work and tipping this will be the most cost effective way to proceed as the value of the load isn’t going to be huge.  At the opposite end of the spectrum drivers with high value, high end goods, tend to opt for this level of cover to ensure they are fully protected.  Clearly these higher end items, perhaps boats and cars, would create a financial nightmare for the business if the insurance was insufficient.

Those who operated within the middle – in the transportation of general goods, will possibly consider taking the conditions of carriage route.  The Road Haulage Association (RHA) and Freight Transport Association (FTA) are two such authorities that have conditions of carriage you can adopt.  The purpose of this route is to limit your financial liability to the customer and cap it at a previously agreed cost, normally per tonne.  Having this in place  ensures that you cannot unwittingly have insurance that would fail to cover you, as it renders the actual value of the goods irrelevant.

These rules are only applicable when operating solely with the UK, if you are working in the movement of goods by road on an international basis, even if your role is solely within the UK and handing the cargo on before it leaves the country, then CMR cover is applicable. The European Union have issued a standard none negotiable requirement for cargo that is transported across borders, it is important to make sure you have appropriate cover if you are part of an international cargo transport system.

Author: admin on April 15, 2012
Category: Truck Insurance

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