Definition - What does Transit Insurance mean?
Transit insurance is a policy that covers business goods or personal belongings while they're being moved from the place of loading to the stated destination over land by a certain transport mode. This type of insurance covers the packing and unpacking, loading or offloading, transportation and storage of goods during the entire move. It also covers the damage or loss of the goods while in transit due to mishandling, or other forms of damage such as accidents, explosions, impact fires, theft and malicious damage. Transit insurance is useful to people who regularly transport goods over large or small distances, especially the couriers.
Insuranceopedia explains Transit Insurance
Transit insurance only applies to goods transported over land. This coverage can be purchased by the owner of the goods being transported, or the company hired to transport the goods. For this reason, it is important to check whether the business transporting your goods is well covered.
The goods covered by transit insurance can be raw materials, manufactured goods, packaging material, or someone else's goods. Other than offering the policyholder indemnity from damage or loss, the insurance coverage also covers other related expenses such as incidental storage, and alternative accommodation expenses. The insurance policy contract will depend on the type of cargo, the cargo's declared value, the course of the journey, time periods, and the goods' predefined areas of transit.