A motor policy covers the vehicle. It does not, on its own, pay for the load. If you cart goods for reward — pallets, machinery, produce, building materials — the freight needs cover of its own, and there is more than one way to arrange it.
Carriers Liability vs Goods in Transit
The two get used interchangeably and they are not the same thing.
- Carriers liability responds where you are legally liable for loss or damage to a customer’s goods while they are in your care, custody or control. Liability is usually shaped by your conditions of carriage.
- Goods in transit covers the goods themselves against defined events while they are being carried, whether or not you were at fault.
Which one you need depends on whether you are moving your own property or someone else’s, and on what your customer contracts demand.
What Is Typically Covered
- Collision, overturning or derailment of the carrying vehicle.
- Fire, flood and storm damage in transit.
- Theft of the whole load, and sometimes part of it, subject to conditions.
- Loading and unloading, on some wordings — but read this one closely.
Where Claims Come Unstuck
The exclusions are the part worth reading twice.
- Unattended vehicle conditions. Many wordings require the vehicle to be locked, immobilised or in a secured yard. An overnight theft from a street park can fall outside cover entirely.
- Insufficient packing. If the goods were not packed for the journey, damage may not be covered.
- Refrigeration breakdown. Temperature-controlled loads usually need a specific extension — see refrigerated truck insurance.
- Excluded commodities. Tobacco, alcohol, electronics, livestock and dangerous goods are commonly carved out or separately rated.
- Subcontracted freight. If you pass work to another carrier, check whether their loss falls back on you.
Getting the Sum Insured Right
Cover is usually written as a limit per vehicle or per sending, not per year. The question to ask is not “what is my average load worth” but “what is the most valuable load that could ever sit on one truck”. Peak season, consolidated deliveries and high-value one-offs are what set the limit.
Conditions of Carriage Do Real Work
Your terms of trade determine how much liability you accept in the first place. Well-drafted conditions, brought to the customer’s attention before the job, limit exposure. Conditions printed on the back of an invoice issued after delivery generally do not.
Declared Value vs Actual Value at Risk
Transit limits are usually written per vehicle or per sending. The mistake is to set them on an average load. Insurers pay up to the limit, so the question is what the maximum exposure looks like on the worst possible day.
Three situations commonly exceed a declared limit: consolidated deliveries where several customers’ goods travel together, seasonal peaks where value per pallet rises sharply, and one-off high-value freight taken on as a favour. If any of those apply, either lift the limit permanently or arrange a specific declaration for the trip.
How a Transit Claim Actually Runs
- Secure the scene and the load. Preventing further damage is usually a policy condition, not just good sense.
- Photograph everything — the load, the restraint, the packaging, the vehicle and the location.
- Notify promptly. Late notification is a recurring reason for reduced settlements.
- Keep the consignment note, delivery docket and any proof of condition on collection.
- Do not admit liability to the customer before the insurer has assessed it.
- Preserve the damaged goods until the insurer confirms disposal, because salvage value affects the claim.
Load Restraint Is a Coverage Issue, Not Just Compliance
The Load Restraint Guide is the reference point for whether a load was secured properly, and insurers refer to it after a loss. Damage caused by inadequate restraint can fall foul of both the policy and the Heavy Vehicle National Law. Photographs of the restrained load before departure take a minute and settle most arguments later.
Subcontracting Freight
If you pass work to another carrier, three questions decide whether that exposure comes back to you: what your conditions of carriage say about subcontracting, whether the subcontractor’s cover responds and for how much, and whether your customer knows the freight was subcontracted at all. Collect certificates from subcontractors the same way principals collect them from you.
Common Questions
Does my truck policy already include the load?
Usually not, beyond a token amount. It is a separate section or a separate policy.
What about goods I own, moving between my own sites?
That is typically goods in transit rather than carriers liability, and it can often sit within a business insurance package.
Do I need it if I only cart my own plant?
Moving your own excavator on your own float is normally dealt with under plant and equipment cover rather than transit cover — but confirm that the policy covers it while in transit, because not all do.
Talk It Through
Freight exposures vary enormously by what you cart and who for. Request a quote or call 1300 983 940.
General advice only. This article does not take your objectives, financial situation or needs into account. Consider the relevant PDS and Target Market Determination before deciding on a policy.