Why do you need Transit & Transportation Insurance?

Whether by the ocean, air, or land, your transport & logistics company moves goods from one place to another every day. Businesses of all sizes depend on you to get products to their destinations, making Transit & Transportation Insurance a necessary defense for business continuity. Although these are two separate policies, they often work in tandem. Also known as Ocean Cargo or Inland Marine Insurance, these helpful policies support an industry undergoing rapid change. Transport & logistics companies continue to reimagine and reshape customer engagement as fierce global competition and demands for innovative technology increase.


Cargo theft costs the transport & logistics industry an astounding $30 billion a year. The average value of theft has recently increased by 36% as cargo thieves are now targeting higher-value merchandise.

Damaged Goods

Nearly 11% of all unit loads have some case damage upon arriving at a distribution center. While this is a painful number to pass on to customers, the real damage is in the ripple effect — which typically comes full circle.


3. Since 2009, deaths in truck wrecks have increased by 52%. Lamentably, up to 74% of all fatal passenger vehicle cases involve a large truck. Industry experts predict large truck accidents to be the fifth leading cause of US deaths by 2030.

Transit & Transportation Insurance provides protection for businesses of all sizes who depend on getting their goods from one place to another every day, whether by the ocean, air, or land

What is Transit & Transportation Insurance?

As mentioned, Transit & Transportation Insurance are two different policies that companies typically purchase together. These policies protect your business from property loss or damage when it’s in transit or stored offsite (i.e., other than your primary business location).

A highlight of this coverage is that it protects specialized high-value assets that other policies don’t. Moreover, it’s a unique extension of traditional property insurance — but offers more coverage. Property insurance typically only protects your business assets stored onsite and up to around 1,000 feet away. Transit & Transportation Insurance closes the gaps in a traditional property policy, covering a range of property or assets at various locations.

Transit and Logistics Insurance policies work hand-in-hand, covering offsite or in-transit property and as it’s shipped by sea or air — an aspect typically excluded from most policies. Working in tandem creates additional coverage for your company, protecting your assets from launch to delivery. Also, most policies can be tailored to safeguard more than mere goods; consider vehicles, equipment, infrastructure, etc.

This insurance coverage is an offshoot of Ocean Marine Insurance. Some individuals know it as Ocean Cargo or Inland Marine Insurance. Initially, such policies protected cargo shipped by sea if the ship sunk or pirates seized it. However, the transport and logistics industry has changed dramatically since those days. Over time, businesses began shipping via air, rail, ship, or truck, calling for updated solutions.

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What does Transit & Transportation Insurance cover?

Each policy is customized to fit the needs of your company, but generally, Transit & Transportation Insurance covers the following:

  • Property moving by land, between business locations (i.e., rigging equipment)
  • Property stored at offsite (i.e., construction equipment)
  • Property stored at locations owned by a third party (i.e., vending machines at customer site)
  • Property stored in a moving vehicle (i.e., food truck)
  • Property that is part of the infrastructure (i.e., communication towers)
  • High-value property stored at your primary business location (i.e., artwork)

Transit & Logistics Insurance does not cover:

  • Stationary property at your primary business location
  • Business vehicles
  • Earthquake and flood damage

While transporting several palletized fabric-filled boxes for a customer, a violent storm erupts, soaking through the cardboard to the goods inside. Upon arrival, the boxes appear caved-in, and the fabric has water damage. Your customer needs the products, and water-soaked boxes weren’t what you expected to deliver.

How much does Transit & Transportation Insurance cost?

Transit & Transportation Insurance is often tailored to fit the specific needs of your company. However, your premium depends on a wide range of factors, including:

  1. Nature of the goods shipped
  2. Value of the goods shipped
  3. The route used to deliver goods
  4. Scope of coverage

Who needs Transit & Transportation Insurance?

As an industry continually in flux, companies value the ever-evolving nature of Transit & Transportation Insurance. Furthermore, small and large businesses benefit from this specialized form of property coverage — and yet, it’s vital for any business generating revenue by shipping goods. That said, Transit & Transportation Insurance is essential for the following industries:



B2B Internet Sales


Multinational Companies

Importers and exporters

Freight forwarders

Logistic service providers

Common carriers


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