UK Goods in Transit Insurance: RHA and CMR Checks for London Trade
By Faura ·
Goods in transit insurance covers a carrier’s legal liability for loss, theft or damage to goods in its custody, including loading, unloading and storage that forms part of the journey. It is separate from motor (hire and reward) cover and from an owner’s all-risks cargo policy. If you carry other people’s goods for payment in the UK, you should hold suitable cover.
TL;DR:
- Theft claims involving unattended vehicles may fail unless every access point is locked and the vehicle is parked in a secure facility during required hours.
- The RHA cap is £1,300 per tonne of gross weight, and applies only when RHA terms appear in quotes and contracts from the outset.
- International road journeys use CMR liability rules, so domestic UK limits do not apply; check the consignment note and policy wording before accepting international work.
- Check whether loading, unloading, and temporary journey storage are covered; declare high value loads and arrange separate all risks insurance when carrier limits fall short.
- Notify the insurer promptly, then submit proof of value, delivery records, loading and parking evidence, photos, and police reports if theft is suspected.
Table of Contents
- What does goods in transit insurance actually cover?
- What do policies exclude, and what limits apply?
- How do RHA conditions and the CMR convention change your liability?
- Which cover should you choose: liability or all risks?
- What should you check before every job?
- Why do claims fail, and what should your broker do?
- How long does a goods in transit claim take to settle?
- Why should designers check transit cover for FF&E?
- How we can help with procurement and delivery for London projects
- FAQ
- Sources
What does goods in transit insurance actually cover?
A standard policy protects the carrier against claims from customers whose goods go missing or arrive damaged. Focus Insurance describes it as cover for legal liability for third-party goods, including loading, unloading and temporary storage as part of a journey. It does not replace motor insurance, which deals with the vehicle and public liability rather than the cargo itself.
In practice, expect these elements:
- Loss, theft and accidental damage while goods are in your custody.
- Loading and unloading, plus short storage that is genuinely part of the journey. Always confirm this in the wording.
- Contingent liability extensions for subcontractors, useful if you pass work to other hauliers.
- Declared-value or all-risks bases for customer-owned, high-value goods.
- Cover for specialised cargo, where the insurer agrees it in advance.
Policies can operate under RHA conditions, the CMR convention for international work, or common law liability, as the RHA’s HGV insurance guide explains. Which basis applies shapes what you can actually recover.
What do policies exclude, and what limits apply?
Most claim rejections trace back to a handful of exclusions and conditions. Check these before you accept a quote:
- Theft-attractive items, money and live animals are commonly excluded.
- Hazardous or prohibited goods are usually out unless specifically agreed.
- Unattended vehicles must typically be locked at all access points and held in a secure compound during set overnight hours. The exact window varies by policy, and some wordings set specific overnight hours.
- Monetary limits and sub-limits apply per event or per vehicle, so high-value consignments must be declared to obtain cover or higher limits.
Standard policies frequently exclude theft from unattended vehicles unless the vehicle is secured at all access points and parked in a guarded facility during specified hours, according to WAIB. Many carriers assume theft is automatically covered. It is not. Wordings such as the Novas booklet show specific sub-limits for theft-attractive goods left unattended, so read your own schedule line by line.
How do RHA conditions and the CMR convention change your liability?
Contract terms can cap what a carrier owes, but only when they are properly in place. The RHA Conditions of Carriage can limit liability through a per-tonne cap, and the limit applies only when the Conditions are incorporated and communicated to the customer. A commonly cited figure is £1,300 per tonne on the gross weight of lost or damaged goods, again only where the Conditions are referenced in quotes and contracts from the outset.
The key points:
- Quote the Conditions at rate or contract stage and keep proof that you did.
- Failing to provide them, including at annual renewal of terms, can leave you liable in full. Birketts notes that administrative oversights are a frequent reason carriers are held liable above standard caps.
- International road journeys use a CMR consignment note, and liability is governed by the Carriage of Goods by Road Act 1965. Domestic UK limits do not apply there.
- Without incorporated terms, you face unlimited common law claims.
Which cover should you choose: liability or all risks?
Liability cover under RHA or CMR terms is normally enough for general haulage and low-value consignments. All-risks cover suits bespoke or high-value FF&E, where the loss would far exceed any per-tonne cap. A knowledgeable cargo owner often buys separate marine cargo insurance for full value, and that insurer then pursues the carrier only up to the carrier’s liability limit, as RSA’s guidance on industry standard terms describes. Standard Conditions of Carriage themselves tell customers to arrange adequate insurance, as in this published RHA Conditions document.
Work through these criteria:
- Typical consignment value, and the highest single load you expect.
- Client contract requirements, since some specify all-risks levels per vehicle.
- How often you subcontract, which calls for contingent cover.
- Operating geography: UK only, or international under CMR.
- Whether loading, unloading and short storage need to sit within the wording.
Pro Tip: Give your broker real consignment values and ask for the policy wording, not just the summary, so you can see exactly how loading, unloading and storage are treated.
What should you check before every job?
A short routine keeps cover valid and strengthens any later claim:
- Read the policy schedule and confirm whether loading, unloading and temporary storage are included.
- Quote and supply your Conditions of Carriage when agreeing the job.
- Make sure drivers carry vehicle documents, operator licences and any consignment notes, as Gov sets out for cross-border work.
- Ask subcontractors for proof of cover and keep a copy.
- Keep photos, delivery receipts and any police reports.
- For international legs, note that HMRC’s insurance premium tax manual explains how premiums on goods in international transit are treated, so confirm the tax position with your adviser.
Why do claims fail, and what should your broker do?
Claims normally need proof of value, evidence of how goods were loaded and parked, and prompt notice to the insurer, plus the police where theft is involved. The usual pitfalls:
- Tools or high-value items left undeclared.
- Misreading an unattended vehicle clause.
- Failing to reissue Conditions each year.
Your broker should point out key exclusions and confirm any endorsements you need. The Financial Ombudsman Service has highlighted that disputes often come from policyholders not understanding the exclusions in their schedules, as Civil Help summarises. Unclear advice or documentation tends to leave the customer worse off, so ask questions before you sign.
How long does a goods in transit claim take to settle?
We cannot point to a published UK settlement timetable, because timeframes depend on the insurer, the policy and how well the claim is documented. What you can control is the speed and quality of your submission.
A typical sequence runs like this. First, notify your insurer promptly, and the police if theft is suspected. Next, gather proof of value, delivery paperwork, photos and evidence of secure parking. The insurer then assesses the claim against the wording, checking exclusions, sub-limits and conditions such as unattended vehicle rules. Complex or high-value claims may involve a loss adjuster, which adds time. Finally, settlement is made up to the policy limit or the applicable liability cap.
Delay usually comes from missing evidence, disputes over whether Conditions were incorporated, or undeclared items. Where a cargo owner’s own all-risks insurer pays first, that insurer may then seek recovery from the carrier, which can extend the overall process. If you are unhappy with the outcome, the Financial Ombudsman Service handles complaints about insurers. Ask your broker for their expected stages and timescales at the outset, and confirm them against your own policy documents.
Why should designers check transit cover for FF&E?
A carrier’s liability limit is rarely the full value of a bespoke sofa, stone slab or lighting package. Design teams delivering to London projects should ask whether the carrier’s cover would meet the item’s full value, or whether client-held all-risks cover is needed. Ask every logistics partner for their Conditions of Carriage and limits in writing. We recommend documenting declared values and coordinating insurance whenever we manage procurement and delivery.
— Faura Editorial
How we can help with procurement and delivery for London projects
We are not an insurer. We are a trade-only showroom and residency in Westminster, and we handle specification support, procurement and managed logistics for FF&E. We also coordinate logistics for high-value or complex FF&E project consignments. Trade terms are agreed individually with each approved account. Read how our FF&E logistics for London projects works, or apply for trade access and book an appointment.
FAQ
How much is goods in transit insurance in the UK?
Premiums vary with the goods carried, consignment values, operating area, claims history and the basis of cover. We do not quote a typical figure, so ask a broker for quotes using your real consignment values.
Is goods in transit insurance a legal requirement?
There is no single rule that makes it compulsory in every case, but operators carrying goods for hire and reward should hold suitable cover. Confirm your position with a broker or insurance adviser. For international work, the Carriage of Goods by Road Act 1965 sets the CMR liability framework you must be covered for.
What insurance covers goods in transit?
Goods in transit insurance covers the carrier’s liability for third-party goods. Motor (hire and reward) insurance covers the vehicle, and an owner’s marine cargo or all-risks policy covers the goods’ full value. Many businesses need more than one.
What are goods in transit in insurance?
They are goods held in a carrier’s custody while moving from one place to another. This includes loading, unloading and short storage that is part of the journey, as Focus Insurance outlines.
What should a London designer ask a carrier before FF&E is delivered?
Ask for their Conditions of Carriage in writing, the liability limit per tonne or per consignment, and proof of current cover. Confirm whether the limit meets the item’s full value. If it does not, arrange all-risks cover before the delivery date.