goods in transit

Most deliveries go smoothly — until the day one doesn’t.
A rider crashes.
A package gets wet in the rain.
Something fragile is tossed around during transit and arrives damaged.
Or worse, the item just… disappears.
Now the customer is angry. The money is gone. And someone has to take the fall.

This is where goods in transit insurance comes in. It’s about being smart enough to prepare for issues. If you’re sending physical items, this kind of cover gives you peace of mind and a real safety net.

This article breaks down how it works, what it covers, and why smart businesses are making it a non-negotiable part of their shipping process, no matter how small the order.


What is Goods in Transit Insurance?

Goods in transit insurance (often shortened to GIT insurance) is a type of cover that protects items while they’re being transported from one location to another.

It doesn’t matter if you’re moving products across town or shipping them across a state line. As long as the item is physically in motion — in a car, bike, van, or truck — it’s vulnerable to loss, theft, or damage. GIT insurance is designed to absorb that risk so you don’t bear the full cost when something goes wrong.

It’s commonly used by:
  • Delivery companies
  • E-commerce brands
  • Wholesalers and distributors
  • Freelancers or small vendors sending customer orders
  • Even individuals shipping personal items of value
The best part? It’s often affordable, flexible, and available on a per-delivery basis — not just for large-scale operations.


What Goods in Transit Insurance Typically Covers

This table shows what most GIT insurance plans will and won’t cover during delivery. Always check with your provider for specific terms.

Covered Not Covered
Theft during delivery Poor packaging or unsecured items
Damage from road accidents Items not labeled as fragile
Loss or misplacement during transit Incorrect or incomplete delivery address
Weather-related damage (rain, heat) Perishables without proper storage
Accidental impact or crushing in transit Delayed deliveries or missed deadlines



Who Actually Needs Goods in Transit Insurance?

If you own a business, you need goods in transit insurance. Simple.
Many people assume this kind of protection is only for big companies, but the truth is: small businesses are the ones who get hit the hardest when things go wrong.

Here are the most common groups that benefit from it:


1. Small Brands Shipping Customer Orders

Whether you’re into skincare, thrift, perfumes, fashion, or food, you’ve probably sent something that got lost, damaged, or delayed. Insurance helps you avoid refunding orders out of pocket.


2. E-commerce Stores & Online Vendors

Running an online store? Every delivery is a promise to your customer. Insurance adds an extra layer of trust — especially for high-ticket items or bulk orders.


3. Freelancers, Artisans & Creators

Photographers, designers, printers, or creatives often deliver physical work. If a framed photo or custom art piece is damaged in transit, it’s hard (and costly) to replace.


4. Distributors & B2B Suppliers

Businesses sending stock to other businesses face serious financial loss if anything goes wrong. GIT insurance helps avoid disputes and keeps operations professional.


5. Anyone Sending High-Value or Fragile Items

Laptops. Phones. Custom jewelry. Electronics. If it can break or vanish — and you’re the one sending it — you need protection.

Bottom line? If you’re shipping something important, insurance is cheaper than regret.



How Goods in Transit Insurance Actually Works

Goods in transit insurance isn’t complicated, but most people don’t use it because no one explains how it fits into the actual delivery process.

Here’s how it usually works, step by step:

1. You Book a Delivery

This could be through a courier company, delivery app, or logistics partner. At the point of booking, you either:
  • Request goods in transit insurance as an add-on
  • Or use a courier that includes it automatically (especially for high-value deliveries)

2. Item is Picked Up and Moved

Once the rider or driver collects the item, coverage begins. Your goods are now protected only while they’re in transit.

Once delivered successfully, the coverage ends.

3. If Something Goes Wrong…

Let’s say the package is damaged or lost in transit. You’ll need to:
  • Notify the courier immediately
  • Provide proof of item value (receipt, invoice, or confirmation)
  • Share any evidence (photos before pickup, packaging, complaint from receiver)

4. Claim Is Reviewed

The courier or insurance partner investigates the issue. If it’s confirmed that the item was lost or damaged during transit (not before or after), your claim is approved.

5. You Get Paid or Compensated

Depending on the insurance terms, you either receive:
A refund of the item’s value (up to the insured limit)
A payout based on claim evaluation
Store credit or item replacement (if it's a business handling fulfillment)
The entire process usually takes a few working days, assuming documentation is clear.

At Peng Logistics, we make this process easier by partnering with Octamile:
  • Optional coverage options
  • Accepting digital receipts as proof
  • Assigning human support to handle every claim personally
We believe protection should be simple, not hidden behind confusing terms or endless forms, and Octamile helps us do that.



Common Myths and Mistakes About Goods in Transit Insurance

Most businesses ignore insurance not because they don’t need it but because they believe one of these:

❌ “It’s Only for Big Companies”

Nope. In fact, big companies can afford to lose a package here and there.
Small businesses can’t.
If you’re running a one-man brand or SME, losing one delivery can set you back a whole week.

❌ “The Courier Will Replace It If Something Happens”

Not always.
Most courier companies have limited liability, and if there’s no insurance or signed agreement, you may get nothing back. We usually come to a compromise for our clients, but most other companies won't.
Without goods in transit coverage, you’re hoping they’ll “do the right thing.” That’s not a plan.

❌ “It’s Too Expensive”

Most basic coverage options are very affordable—often ₦500–₦2000 per delivery (globally, that could be $2–$10+ depending on the provider).
That’s a tiny cost compared to what you’d lose if a ₦50,000 product goes missing.

❌ “I’ve Never Had a Problem Before”

That’s like saying, “I’ve never had an accident, so I don’t wear a seatbelt.”
Accidents don’t warn you — they just happen.
Insurance is for that one unexpected delivery that changes everything.

❌ “My Customers Don’t Ask for It, So It’s Not Necessary”

Customers expect you to deliver safely — they don’t always ask how.
But if something goes wrong and you can say “your item was insured,” that changes the conversation from blame to professionalism.

Bottom line? Skipping insurance is a gamble. And in logistics, even one mistake can cost you profit, reputation, and repeat customers.



The Role of the Courier: Risk Reduction + Optional Coverage

Couriers are your delivery arm—but even the best can’t guarantee perfection. That’s where risk reduction and optional insurance come together.

Here’s what a responsible courier should do (and what you should expect):

1. Plan Smart, Not Just Fast

A good courier doesn’t just rush orders—they plan routes based on logic:
  • Shortest safe path
  • Rider familiarity with pickup/drop-off areas
  • Real-time traffic considerations
This lowers the risk of delays, missed deliveries, and wrong addresses.

2. Train Riders to Handle Packages Properly

Riders are the front line. If they don’t understand:
  • How to hold a fragile box
  • How to protect items from rain
  • How to communicate with customers
…then you’re always one bad ride away from a refund request.

3. Offer Optional GIT Cover for Valuable Deliveries

Not every package needs insurance, but you should be able to choose.

At Peng Logistics, we give you that choice.
If you're sending something valuable, you can request goods in transit cover during booking.
We’ll walk you through it. No hidden policies. No small print.

4. Communicate Clearly at Every Step

If your courier ghosts you after pickup, you’re in trouble. A good courier keeps you in the loop.

When your courier takes risk seriously, insurance becomes a support system, not a last resort.


Simple Tips to Protect Your Goods During Delivery

Goods in transit insurance is your safety net — but there’s a lot you can do upfront to avoid problems in the first place.

Here are quick tips that actually reduce loss, damage, and drama:

1. Package It Like It’s Already Moving

Don’t wrap items as if they’re staying on a shelf.
Use bubble wrap, boxes with padding, or even double-sealed courier bags — depending on the item.
If it can break, assume it will be tossed once.

2. Label Clearly — Especially Fragile or Directional Items

Use bold, visible stickers or write:
  • “FRAGILE – HANDLE WITH CARE”
  • “THIS SIDE UP”
  • “DO NOT CRUSH”
Riders may not ask — so tell them what matters.

3. Take a Photo of the Item Before Pickup

Especially for high-value or custom deliveries.

This acts as:
  • Proof of item condition
  • Evidence for potential claims
  • A way to avoid “he said, she said” with buyers

4. Keep a Record of Each Delivery

Save:
  • Customer name & address
  • Item description
  • Tracking ID or courier name
  • Screenshot of payment or order confirmation
This makes life easier if you ever need to file a claim.

5. Ask the Courier: “Is This Delivery Insured?”

Don’t assume.
If you’re sending something expensive, ask upfront:

“Can I add insurance to this delivery?”

At Peng Logistics, we encourage this question, because it shows you take your business seriously.

When you combine smart preparation with the right delivery partner, you avoid problems before they happen — and recover faster when they do.


Final Thoughts

Most deliveries go well. But the one time it doesn’t, goods in transit insurance can save your business.

If you sell physical products, if your customers trust you to deliver safely, or if you just don’t want to absorb losses out of pocket — this is part of doing business properly.

And remember: insurance doesn’t replace good logistics — it supports it.

With the right courier, solid packaging, and clear communication, you reduce your risk. Add insurance to that mix, and you’ve got peace of mind from pickup to delivery.