This policy covers loss, destruction or damage to the goods whilst in transit, which includes the packing and unpacking, loading or offloading, transportation and storage of goods by any means land conveyance or whilst temporarily housed in the ordinary course of transit within the territorial limit caused by named perils or accidental means. The policy would also include loss of goods by theft (during transit) or flood, however voyage by sea is generally excluded under Inland Transit, but could be covered by Marine cargo insurance. 

Typically the policy covers for domestic transportation, and cover could be extended to either 1 vehicle or a fleet of vehicles. Premium would depend greatly on the type of goods covered. A high valued goods will generally require higher policy coverage to indemnify a potential claim, hence a higher premium is expected.

Types of Policies

Specific Policy – The policy issued for a specified transit. The coverage under the policy will cease on completion of the transit contemplated

Open Policy – This is a policy intended to cover Inland movement of consignments for specified period of time which is usually one year. This policy is suitable for insured with numerous transactions throughout the year. The availability of the open policy facilitates the insured in having automatic and continuous cover and the insured is free to declare the consignment movement subject to the terms and conditions of the policy. The open policy is issued with an initial sum insured which can be enhanced at policy rate any time during the currency of the policy.

This policy does not cover:-

• loss of any liquid gas or goods from containers by leakage or spilling unless cause by fire, accident to the conveyance or object falling on to the conveyance
• war and allied risks
• loss or damage caused by weather, atmospheric conditions, wear and tear, moth, vermin, insects, damp, mildew, rust, defective

packing, hooks or slings, delay, loss or market, depreciation or deterioration, contamination, fermentation or spontaneous combustion or consequential loss of any kind.

• theft or pilferage in which any employee of the insured
• loss or damage occasioned by confiscation, nationalisation, detention, requisition or willful destruction by authorities.
• loss or damage whilst the property is temporarily housed in the course of transit for the purpose of storage, making up, packing or processing.
• any act of terrorism

This insurance comes in handy if your business:

• Delivers goods using a vehicle

• Transports equipment for business use

• Is in logistics / freight forwarding industry

• Handles and delivers high value goods 

• Engages a third party carrier to deliver goods

Generally, the premium cost is greatly dependent on the goods/cargo in transit, and the distance of the voyage, and the nature of the business.

High valued goods, OEM products or rare artefacts could raise the premium cost as the policy needs to cater for a higher indemnity amount to cover the cargo value. Large scaled deliveries (eg logistic or freight forwarding companies) would also command a higher premium amount as the policy will need to cover the entire fleet of vehicles.  

Land conveyance could be of a longer distance if it is an interstate delivery, or shorter if the delivery is within the city/town. The inherent risk of long hours driving could impede a driver’s ability to stay focused on the road, which potentially could lead to accidents caused by fatigue.