Quick answer
Goods in transit (GIT) insurance pays for loss of or damage to goods on the road, up to a load limit, whoever caused the loss. Carrier’s liability is what a transporter is legally or contractually responsible for, and is often limited by trading terms. Marine cargo insurance usually covers imports and exports door to door, including sea or air legs. Transporters typically buy GIT; importers and exporters typically buy marine cargo; and contracts decide who carries which risk.
The three covers side by side
| GIT insurance | Carrier’s liability | Marine cargo insurance | |
|---|---|---|---|
| What it is | An insurance policy on the goods while they are transported by road | The transporter’s legal or contractual responsibility for goods in its care | An insurance policy on goods moving internationally, often door to door |
| Who usually buys it | Transporters, transport brokers and cargo owners moving their own goods | Not bought as such; it arises from law and contracts, and may be insured | Importers, exporters and freight forwarders on their behalf |
| What triggers a payout | A covered event, such as an accident, fire, theft or hijacking | The transporter being found responsible for the loss | A covered event anywhere on the insured journey |
| How much it pays | Up to the load limit, less the excess | Often limited by the carrier’s trading terms or contract | Usually the insured value of the cargo |
| Where it applies | Named roads and countries, such as South Africa and listed SADC countries | Wherever the contract applies | The whole international journey, as set out in the policy |
Why carrier’s liability alone is not enough
Many transporters and freight forwarders trade on standard trading conditions that limit or exclude their liability for loss or damage. That protects the carrier, but it leaves the cargo owner short, and cargo owners know it. That is why many now ask transporters for proof of GIT cover with a minimum load limit before they hand over loads.
The opposite problem also happens. A client’s contract can make a transporter liable for more than the GIT policy pays, or for risks the policy excludes, such as delay penalties. Read transport agreements against your policy before you sign.
Three common scenarios
Local road haul within South Africa
The transporter’s GIT policy is the main protection for the load. The cargo owner may also have its own stock or transit cover.
Import through Durban, then by road inland
The importer’s marine cargo policy often covers the whole journey, including the road leg from the port. The transporter still needs GIT for its own liability and to meet client requirements, especially while containers wait in port queues.
Cross-border load into the SADC region
Check that the GIT policy names every country on the route. Cross-Cover can arrange cross-border GIT on request for 12 countries beyond South Africa, as far north as Kolwezi in the DRC.
Questions to settle before every contract
- Who insures the goods: the transporter, the cargo owner or both?
- What is the transporter liable for, and up to what amount?
- Does the transporter’s load limit cover the most valuable load?
- Are delay, consequential loss and loading damage dealt with in the contract?
- Which document proves cover, and who must be noted on it?
Frequently asked questions
Not exactly. GIT insures the goods against covered events up to a load limit. Carrier’s liability is the transporter’s legal or contractual responsibility, which may be limited by trading terms.
Often yes. Your client’s policy protects the client, but you may still be asked for proof of GIT cover, and you may be liable under your contract.
It depends on the contract. Transporters commonly carry GIT, cargo owners may insure their own stock, and importers or exporters usually buy marine cargo cover.
Yes. Many carriers trade on standard conditions that limit their liability, which is one reason cargo owners ask for GIT cover.
No. GIT is for road transport. Sea and air legs are normally covered by marine cargo insurance.
Related reading
- GIT insurance explained for owner-drivers
- How GIT protects a small transport business
- Durban port delays and your GIT cover
- Proof of goods in transit insurance
This article is general information, not financial or legal advice. Cover depends on underwriting and the policy wording, and liability depends on your contracts. Cross-Cover Insurance Brokers is an authorised financial services provider (FSP 14628).