Goods in Transit and Carrier’s Liability are not the same question. One may protect an interest in the goods, while the other responds to a legal or contractual liability for loss or damage. The contract, ownership, responsibility and policy wording must work together.
Is the load insured, or is your liability insured?
The review should consider
- Who owns the goods and who carries the risk
- Who is responsible for loading and unloading
- Whether liability is limited by contract or Standard Trading Conditions
- The maximum value on any one vehicle or at any one location
- The type of cargo and how it is packed, secured and handled
- Routes, tracking, security and overnight-stop requirements
- Whether subcontracting is permitted and on what terms
- The subcontractor’s cover and the need for Contingent Liability
- Cross-border territories and storage during transit
Some policies may permit subcontracting only on stated terms. If another transporter is appointed further down the chain, cover may not respond as expected. The policy wording and contract chain should be checked before the load moves.
Discuss Goods in Transit Cover