Goods in Transit Insurance vs Public Liability Insurance: What Does Each Cover for a Delivery Business?

The short answer

Goods in transit insurance covers the goods you are carrying if they are lost, stolen or damaged on the journey. Public liability insurance covers claims from third parties for injury or property damage caused by your business activities. A delivery business usually faces both kinds of risk, so the two policies do different jobs rather than overlapping.

What does goods in transit insurance cover?

It protects the goods during movement, for example, parcels, stock or materials in your van or lorry. Typical covered events include road accidents, fire, theft of the load and, depending on the policy, damage during loading and unloading. It is about the goods themselves.

What does public liability insurance cover?

It covers your legal liability to a third party who suffers bodily injury or property damage because of your business. For a delivery business, think of a courier who damages a customer's door while carrying a parcel in, or a person who trips over a trolley left in a lobby. It is about harm to other people or their property, not about the goods you carry.

To see more examples, read our public liability insurance page.

Side by side

• Goods you carry are damaged on the road: goods in transit (or carrier's liability if they belong to a customer)
• A customer is injured when your rider hands over a parcel: public liability
• Your delivery van damages a customer's gate while reversing: the vehicle's motor policy, usually, and possibly public liability depending on the circumstances
• A parcel is stolen from your vehicle: goods in transit, subject to security conditions

Where does a carrier's liability policy fit?

If you carry goods that belong to your customers, they can claim against you when those goods are lost or damaged. Carrier's liability insurance responds to that claim. Goods in transit insurance usually covers goods the business itself owns, or cargo the customer has asked to be insured. The wording matters, so confirm which one your policy is. See our article on goods in transit with a third-party courier.

What about motor insurance?

Motor insurance deals with the vehicle and with third-party injury or property damage from driving. It does not usually cover the goods inside, and it is not designed for business liability beyond the vehicle. Check your policy wording or ask your broker how it fits with your other cover.

Which delivery businesses need both?

• Courier and last-mile delivery companies
• Ecommerce sellers with their own delivery fleet
• Food and beverage distributors
• Small hauliers and van operators who also enter customer premises

Common questions

Can public liability cover damaged parcels?
Usually not. Property in your care, custody or control is commonly excluded from public liability, which is why transit or carrier's liability cover exists.

Do gig riders and subcontracted drivers need to be covered?
That depends on how they are engaged and what the policy allows. Tell your broker about every type of driver you use.

If I only deliver my own stock, do I still need public liability?
Often yes, especially if you enter customer premises or if landlords and clients ask for proof. See why landlords ask for public liability.

Related reading

For more detail on each side, see Difference Between Carrier Liability Insurance and Goods in Transit Insurance and Understanding Public Liability Insurance: Risks, Coverage, And More.

Hear it from David Teh

Want to hear how marine and goods in transit cover differ? Founder David Teh explains it on the Cover Buddies Podcast. Read the episode page, listen on Apple Podcasts or Spotify, or watch on YouTube.

Work with Cover Buddies Today!

Let Cover Buddies check that your delivery business is covered for goods, vehicles and third-party risks. Explore Marine Insurance or Public Liability Insurance, get a quote or WhatsApp us.