UK goods-in-transit insurance and cargo-damage claims for hauliers, couriers and shippers

Goods in transit vs motor cover: two separate insurance contracts

The first conceptual point - frequently missed at the scene of a collision - is that GIT insurance and commercial motor insurance are two entirely separate contracts of insurance with different insurers, different certificates, different excesses and different claim handlers. Commercial motor insurance under section 143 of the Road Traffic Act 1988 is compulsory: every motor vehicle on a road or other public place must be insured against third-party risks. The statutory minimum is unlimited bodily-injury cover and £1.2 million property-damage cover. That third-party cover responds to injury or property damage caused by the vehicle to other road users - not to the goods being carried inside the vehicle.

GIT insurance is not compulsory by statute. It is a commercial product the carrier buys to protect against the carrier's own liability to the contracting customer for loss of or damage to the goods carried. When a multi-drop courier van collides with a third-party car and the load of parcels is destroyed, three separate insurance responses run in parallel: the courier's motor insurer handles the vehicle and the third-party injury / property claim; the third-party motorist's insurer handles the third party's vehicle and personal injury; and the courier's GIT insurer handles the destroyed cargo. Each response has its own claim number, its own reserve and its own settlement track. Treating the GIT claim as part of the motor claim is a common reason cargo files are under-reserved at the outset.

The CMR Convention and the Carriage of Goods by Road Act 1965

International road carriage to or from the UK is governed by the Convention on the Contract for the International Carriage of Goods by Road, concluded at Geneva on 19 May 1956 and commonly called CMR. The Convention is given force in UK law by the Carriage of Goods by Road Act 1965, the schedule to which sets out the Convention text. CMR applies where the carriage involves the road movement of goods between two countries and at least one of the countries - the country of taking over of the goods or the country of delivery - is a CMR contracting state. The UK is a contracting state, as are every EU member state, Switzerland, Norway, Turkey, Morocco and a long tail of additional jurisdictions.

Under CMR the carrier is liable for total or partial loss of the goods and for damage occurring between taking over and delivery, subject to the limited defences in Article 17 (inherent vice, defective packing, the act or omission of the claimant, circumstances the carrier could not avoid). The liability cap is fixed at 8.33 Special Drawing Rights per kilogramme of gross weight of the goods short or damaged (Article 23(3)). The Special Drawing Right is the IMF reserve unit published daily on the Bank of England website. The time bar for action is one year from delivery or expected delivery (Article 32(1)), extended to three years where the loss is caused by wilful misconduct. Non-apparent damage must be protested in writing within seven days of delivery (Article 30(1)), Sundays and public holidays excluded. The CMR consignment note (Articles 4 to 9) is the formal document of carriage and the primary evidence on every CMR claim.

UK domestic road carriage: common law, bailment and the RHA Conditions of Carriage

A delivery wholly inside the UK is not within CMR. The applicable law is a combination of three sources. First, the common law of contract - the carrier and the customer enter into a contract of carriage with express or implied terms, including the rate, the delivery point and the time for delivery. Second, the common law of bailment - the carrier as bailee of the customer's goods owes a strict duty of care, subject to the conditions of carriage and the right to invoke contractual limits. Third, and decisively in practice, industry standard trading conditions incorporated by reference into the contract.

The most widely-adopted standard form in UK domestic haulage is the Road Haulage Association (RHA) Conditions of Carriage 2009, revised in 2020. The RHA Conditions set a default liability cap of £1,300 per tonne of the gross weight of the goods lost or damaged (clause 9(2)); a 9-month time bar from delivery, or from the date the goods should have been delivered, within which proceedings must be commenced (clause 14(2)); a 7-day claim- notification window for apparent damage and a 28-day window for non-apparent loss or damage (clause 13); and the carrier's right to refuse certain consignments including bullion, money, securities, livestock and antiques (clause 3). Incorporation of the Conditions must be properly signposted - on the quotation, the consignment note and any other contract document - otherwise the carrier loses the protection of the cap and the time-bar shortcut and the general contract regime under the Limitation Act 1980 applies (six years for breach of contract under section 5).

GIT policy structure: per-load limits, excesses, security warranties and endorsements

A standard UK GIT policy is structured around three core variables and a series of optional endorsements. The first variable is the per-load limit - the maximum the policy will pay for the contents of one vehicle on one journey. A sole-trader courier policy typically carries £10,000 to £30,000 per load; a general haulage operator £25,000 to £100,000; specialist high-value haulage £250,000 to £1 million or more. The second variable is the per-load excess, typically £250 to £1,000 depending on cargo type and risk profile. The third variable is the territorial scope: UK only, UK and EU (with CMR cover automatically engaged on international movements), or worldwide excluding USA and Canada.

Optional endorsements expand the cover. Refrigerated-load (reefer) cover is a separate endorsement for temperature-controlled carriage, responding where a refrigeration unit fails mid-journey or the cold chain is broken. Hazardous-cargo cover responds to ADR-regulated loads under the Carriage of Dangerous Goods and Use of Transportable Pressure Equipment Regulations 2009. Theft cover is normally included but subject to security warranties - the vehicle must be left in a secure parking area, with tracker activation, an anti-theft device engaged and (frequently) an attended-vehicle clause excluding theft from an unattended vehicle in a public car park. A breach of warranty defeats the cover. Specific load exclusions on most GIT policies include money, jewellery, livestock, deeds and securities, and contents of removal containers where a separate household-goods-in-transit policy is appropriate.

Common GIT scenarios: collision, theft, lost load, refrigeration failure and ADR spill

Vehicle collision destroys cargo. A box-body van carrying pallets of stock for an e-commerce wholesaler is involved in a front-impact collision on the M6. The third-party driver is at fault on the motor side. The pallets are crushed and unsellable. The motor claim handles the vehicle. The GIT claim handles the destroyed cargo at invoice value plus freight, less salvage proceeds and the per-load excess. Where the contract is domestic and the RHA Conditions are incorporated, the recovery is capped at £1,300 per tonne of damaged goods.

Theft of cargo from a parked vehicle. A multi-drop courier parks overnight at a motorway services area with a load of electronics still in the vehicle. The vehicle is broken into and the load stolen. The carrier as bailee is prima facie liable to the customer; the GIT policy responds subject to the security warranty - whether the services area qualifies as a "secure parking area", whether the tracker was activated, whether the anti-theft device was engaged. Breach of any warranty defeats the cover. Crime reference number from the police is obtained the same day; GIT insurer notified inside 24 hours.

Cargo falling out of an open box-van or curtain-sider. A load that is improperly secured shifts in transit and falls onto the carriageway, damaging the goods and creating a third-party hazard. Rules 98 to 102 of the Highway Code set the load-security expectations. A load-security failure is a recognised ground for the GIT insurer to argue contributory cause and apply the carrier's share of liability - but the policy normally still responds to the cargo loss subject to the standard deductions.

Refrigeration-unit failure on a reefer load. A refrigerated trailer carrying chilled food for a supermarket retailer suffers a refrigeration- unit failure during a long-distance run. The temperature climbs above the contract tolerance and the entire load is condemned by the consignee's quality team. The reefer endorsement responds. The temperature-log download from the trailer's data logger is the decisive evidence; most reefer endorsements require download inside 48 hours of the loss event.

Hazardous-cargo spill following a collision. An ADR-regulated load of chemicals is involved in a multi-vehicle collision and the packaging is breached, releasing the contents onto the carriageway. The hazardous-cargo endorsement on the GIT policy responds to the cargo loss and the clean-up / decontamination cost (typically £100,000 to £1 million depending on the UN class). Parallel notifications go to the Health and Safety Executive under RIDDOR 2013, the Environment Agency where there is environmental impact, and the police.

Recovery between the carrier's GIT insurer and the shipper's cargo insurer

A shipper that has tendered goods to a carrier may also hold its own marine cargo or all-risks cargo policy, particularly where the goods are high value, are shipped internationally, or where the carrier's GIT cap is too low to absorb a total-loss event. Where both policies exist and the loss occurs, the shipper's cargo policy will normally respond first under its all-risks wording and pay the shipper for the cargo. The shipper's cargo insurer then becomes subrogated to the shipper's rights of recovery against the carrier - the doctrine, derived from Castellain v Preston (1883) 11 QBD 380 and consistently applied in modern cargo law, that an insurer who has indemnified the insured may stand in the insured's shoes and pursue the wrongdoer.

The subrogated recovery runs through the carrier and into the carrier's GIT insurer, subject to the contractual liability limits of the carriage contract. On an international movement the recovery ceiling is 8.33 SDR per kilogramme under CMR Article 23(3); on a domestic movement under the RHA Conditions the ceiling is £1,300 per tonne. The gap between the cargo's commercial value and the contractual cap is normally the shipper's cargo insurer's net unrecovered loss - a real and recurring exposure that incentivises shippers to negotiate higher carrier liability caps on high-value contracts or to retain a self-insured retention only above the cargo policy attachment point. CityGrip's role on the carrier side is to keep the GIT cover engaged inside the policy notification window so the cargo insurer's subrogated recovery does not collide with a policy-coverage refusal.

Related UK commercial and cargo claim pages

Each linked page deepens one part of the GIT picture. The commercial vehicle accident claims hub sets the broader commercial road-haulage context. The commercial motor insurance page covers the parallel motor-cover regime that runs alongside the GIT policy. The van-loading, multi-drop reversing and tipper / skip lorry pages cover specific operational scenarios where cargo loss frequently arises. The multi-drop courier and hire-and-reward insurance pages cover the small-parcel courier vertical that depends on GIT cover for every daily run.

• Commercial vehicle accident claims (hub)
• Commercial motor insurance claims
• Van loading accident claims
• Multi-drop reversing accident claims
• Tipper and skip lorry accident claims
• Multi-drop courier accident claims
• Hire-and-reward insurance claims
• Car accident claims
• Non-fault car accident claims

Six-step UK goods-in-transit cargo-claim flow after a road incident

1. Step 1

   Secure the load, comply with section 170 of the Road Traffic Act 1988 and protect the cargo evidence

   If the GIT incident is a road collision, stop the vehicle, set hazards, check the driver and any third party, and exchange names, addresses, vehicle registration and insurer details with every other driver involved. Where injury is present or details are not exchanged at the scene, the collision must be reported to the police under section 170(2) or (4) RTA 1988 as soon as reasonably practicable and in any event within 24 hours. With the scene safe, photograph the cargo position inside the vehicle before any handling - damaged pallets, broken seals, shifted load straps and the road environment. On a refrigerated load, immediately download the temperature log. On an ADR load, do not approach the cargo if a spill is suspected; notify the emergency services and the Health and Safety Executive.

2. Step 2

   Notify the shipper and consignee immediately and serve the formal cargo-damage protest

   The shipper (the contracting customer who tendered the goods) and the consignee (the named recipient on the consignment note) must both be notified of the loss or damage at the earliest opportunity. For an international CMR carriage, serve a written protest on the carrier under Article 30 CMR within 7 days of delivery for non-apparent damage; for domestic UK carriage under RHA Conditions, the notification window is 7 days for apparent damage and 28 days for non-apparent loss or damage. Keep the protest factual - date, time, route, narrative of what occurred, observed damage, photographs attached. The protest preserves the legal record; the consignee's signed delivery note alone is not sufficient.

3. Step 3

   Notify the carrier's GIT insurer and the shipper's cargo insurer in parallel

   Notify the GIT insurer named on the carrier's certificate of insurance inside the policy notification window - most policies require 24 to 48 hours for theft and 7 days for damage. Where the shipper holds its own marine cargo or all-risks cargo policy, that insurer is notified in parallel. Both insurers will allocate a claim handler and may instruct a loss adjuster. Identify which underwriter is on risk for each policy because GIT policies are often sold under a broker brand but underwritten by a specialist carrier such as Aviva Commercial, RSA, Allianz, AXA, Zurich, Markel International, Tradesman or a Lloyd's of London syndicate. The certificate of insurance - not the schedule of cover - names the underwriter formally.

4. Step 4

   Identify which regime governs the contract: CMR, RHA Conditions, or bespoke terms

   Determine at the earliest stage whether the carriage falls under the CMR Convention (international road carriage with at least one CMR contracting state), under the RHA Conditions of Carriage 2009 / 2020 revision (domestic UK haulage where the Conditions are incorporated by reference in the contract), under a sea-leg regime such as the Hague-Visby Rules where the load travelled by sea, or under bespoke contract terms. The regime determines the carrier's liability cap, the protest window, the time bar for action and the evidential presumptions. CMR caps liability at 8.33 SDR per kilogramme of gross weight; RHA caps at £1,300 per tonne; the Hague-Visby Rules cap at 666.67 SDR per package or 2 SDR per kilogramme, whichever is higher. Bespoke terms may modify any of these but cannot lawfully reduce the CMR cap below the Convention floor.

5. Step 5

   Preserve the salvage, instruct a loss adjuster and quantify the loss on a net-of-recovery basis

   Do not destroy the damaged cargo or release it to a third party until the GIT insurer has either inspected the salvage or consented in writing to disposal. The salvage value reduces the recoverable loss and is the GIT insurer's primary mitigating factor. Instruct an independent loss adjuster where the loss is substantial, the cause is contested, or the conditions of carriage are in dispute. Quantify the claim on a net-of-recovery basis: commercial invoice value of the goods, plus freight and duty paid, plus reasonable salvage costs, less salvage proceeds, less any sub-limit deductions for items excluded by the policy (typically money, valuables, electronics over a sub-limit, livestock). Build the loss on a documentary base of invoices, customs entries and bank-credit evidence.

6. Step 6

   Commence proceedings inside the time bar and preserve subrogated recovery rights

   Commence formal proceedings within the applicable time bar - 1 year from delivery for CMR, 9 months from delivery for RHA-governed domestic carriage, 6 years under section 5 of the Limitation Act 1980 for a general contract claim where neither CMR nor RHA applies, and 3 years for a CMR claim involving wilful misconduct under Article 32. Where the shipper's own cargo insurer has paid, that insurer becomes subrogated to the shipper's rights and brings the claim against the carrier; preserve the documentary chain so the subrogation is enforceable. CityGrip's role is to keep the file moving on the carrier's side so the legal step is taken inside the window, the evidence pack is complete and the carrier's GIT cover is engaged before any letter of claim or court issue.