RISK (Noun) “A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through pre-emptive action.”

Entrepreneurs are said to have a more aggressive risk appetite than others.  After all, there is a great deal of risk involved in establishing your own business, employing staff and bidding for growth. This doesn’t necessarily mean that entrepreneurs like risk or enjoy taking it. In fact, the opposite is more commonly the case, particularly when it comes to the business’ assets and stock. And while no two businesses are exactly the same, there are certain risks that businesses have in common, like the risk of their goods being damaged or stolen while in transit. That is why so many business owners seek insurance for to protect them against this.

What is goods in transit insurance?

Goods in transit insurance covers goods, such as merchandise, already shipped by the seller, but not yet received, and accepted by the buyer. It was designed to protect both sellers and buyers  who are exposed to financial loss should something happen to the goods while being transported. This gives you the peace of mind associated with knowing that all goods transported to or from your business, that forms part of your trading activities, will be covered in the event of it being damaged, stolen or lost.

What does it cover?

While different insurance providers offer differing goods in transit insurance products, you can normally expect such a policy to cover:

  • Raw materials while they are being transported in South Africa
  • Cover materials and goods in the process of being manufactured while they are being transported in South Africa
  • Goods that belong to someone else while in transportation in South Africa
  • All ropes, chains and/or packaging material used to transport goods
  • Loss of goods due to fire or an accident

Added extras:

Some insurance providers offer the following additional benefits:

  • Cover in the event of the theft of goods while in transit in South Africa
  • Cover should the goods deteriorate while in transit
  • Cover in other African countries, meaning that goods can be transported across South African borders and still be insured

What to remember when considering goods in transit insurance:

Perhaps the most important step is to ensure that you have sufficient coverage. This involves rather opting for the more comprehensive policy that covers your unique needs best, rather than for the insurance that is the cheapest.

Study your goods in transit insurance quote to make sure that you are satisfied with the terms and conditions and that no corners will be cut in the event of you submitting a claim.

Remember that if you do not have the right amount of cover and something does go wrong, you could be held liable for the loss.  And in times of emergency, such as when goods are lost, the last thing you want to be worried about is being accountable for that loss.