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.

This is where goods in transit insurance comes in, 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.

goods in transit

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


How Goods in Transit Insurance Actually Works

Most people don’t use GIT Insurance because no one explains how it fits into the actual delivery process.

So, 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.




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”

No, no, no. 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.

❌ “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. At Peng Logistics we usually come to a compromise for our clients, but most other companies may not.

❌ “It’s Too Expensive”

Most basic coverage options are very affordable—often ₦1000–₦4000 per local delivery in Nigeria (globally, expect $2–$10+ depending on the provider and type of shipment).

❌ “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 before they happen.

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

Customers expect you to deliver safely.
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 customers.



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 some issues in the first place.

Here are quick tips that actually reduce damage and loss:

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.

2. Label Clearly, Especially Fragile or Directional Items

Use bold, visible stickers or write:
  • “FRAGILE – HANDLE WITH CARE”
  • “THIS SIDE UP”
  • “DO NOT CRUSH”
courirers 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.



Final Thoughts

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

It is a core part of doing business properly.

And remember: insurance doesn’t replace good logistics.

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 everytime.

Quiz
Quick Check: Goods in Transit (GIT) Insurance
Question 1 of 8Score: 0
Which best defines Goods in Transit (GIT) insurance?
When is GIT insurance typically active?
If an item is lost or damaged in transit, what should you do first?
Which statement is more accurate about courier liability versus insurance?
How affordable is basic GIT insurance for local deliveries in Nigeria (typical range mentioned)?
Which habit best strengthens your claim & reduces disputes?
What record-keeping approach is recommended for insured deliveries?
Who can benefit from adding GIT insurance to deliveries?
Tap an option to check your answer.