Written by Michael Foote, Insurance Expert
What Goods in Transit Insurance Covers
Goods in transit insurance protects the items you carry in your van against theft, loss or damage while they’re in your care. For couriers, this means parcels are covered from the moment you collect them until they are delivered. Without it, you could be personally responsible for replacing lost or damaged items.
Why Standard Policies Don’t Include It
An H&R insurance policy (Hire and Reward) makes it legal for you to use your van for paid deliveries, but it doesn’t cover the goods inside. Vehicle cover is focused on your van and your liability on the road, not the packages in the back. That’s why many couriers take out goods in transit alongside their main policy.
Is It a Legal Requirement?
Goods in transit insurance is not a legal requirement, but many courier companies and platforms expect drivers to have it. In some cases, you may not be able to secure regular work without showing proof of cover. Even when it’s not compulsory, having this protection reduces your financial risk.
Scenarios Where It Applies
- Parcels are stolen from your van while you’re making deliveries
- Goods are damaged in an accident or because of a sudden stop
- Packages are lost or go missing while in your possession
In each of these situations, hire and reward alone would not cover the loss.
How It Fits With Other Cover
Most van couriers benefit from combining three types of protection:
- Hire and reward – legal cover for using your van to carry goods for payment
- Goods in transit – protection for the parcels themselves
- Public liability – cover if you injure someone or damage property during a delivery
Bundled together, these form the basis of a courier insurance package. For more details, see our courier insurance guide.
The Bottom Line for Van Drivers
If you are delivering parcels professionally, goods in transit insurance is strongly recommended. It protects you from financial loss, reassures clients, and makes you more likely to be accepted for regular work. To explore how it works alongside hire and reward, visit our hire and reward insurance page.