‘Full Responsibility’ Transit Insurance

This article explains the difference between "all risks" goods in transit cover and "Full responsibility" transit insurance. An important read for any haulier but especially those that regularly carry high value loads.

What is full responsibility cover or 'all risks' goods in transit cover?

Full responsibility cover is a term that's often used these days to describe 'All Risks' goods in transit cover. It's important to be aware that full responsibility cover is not the same as transit cover on a liability basis, the difference being that if goods are damaged, there is cover whether or not the haulier has been negligent.

Full responsibility cover and contractual conditions of carriage

Full responsibility cover does not require the haulier to have contractual conditions of carriage in place. That said, hauliers buying cover on this basis should still have some sort of contract, if only to stipulate the maximum value of any one consignment and to contract out of liability for consequential losses.

Ensure your load limit is adequate for full consignments

Firms that want full responsibility cover need to make sure the load limit is adequate to cater for the highest possible value of any one consignment; otherwise there is a risk of 'average' applying. This means, for example, that if a load limit under a full-responsibility policy is only 1/10th of what it should be, then only 1/10th of any loss will be paid.

Demand for full responsibility cover with relatively high limits

Whilst full responsibility cover may be better suited to transit risks where the value of any given consignment is known to be quite low, demand from hauliers for full responsibility cover with relatively high limits can result from companies such as certain supermarkets demanding that their hauliers arrange cover on this basis.

Carrying loads under Road Haulage Association conditions

Firms running larger vehicles, tractor units, trailers and the like may be better off carrying under Road Haulage Association (RHA) conditions as they could potentially be carrying loads worth several hundred thousand pounds. Then if they are required under a particular contract to insure a consignment for its full value, they should seek to agree with their customer to continue using RHA conditions but with the standard £1,300/t liability limit increased to a level sufficient to cover the full value of the load, and to insure accordingly.

This is a marketing article by Towergate Insurance.

HGV insurance from Towergate

We can offer tailored truck insurance with a series of options for drivers of single trucks or hauliers with fleets of up to five HGVs. Our cover ensures you have the right cover in place within a single policy, with no truck too big or too small. We can cover any truck ranging in size from 3.5t vehicles right through to trucks used to move abnormal loads.

Call for a quote on 0344 346 1418 or request an HGV insurance quote online. Alternatively, read more about our truck insurance and what we cover.

For larger vehicle fleets, we also offer fleet insurance.

All cover is subject to normal underwriting terms and conditions.

About the author

Chris North FCII, commercial vehicles insurance articles author Chris North FCII is a respected industry leader with over 40 years' experience, who has worked in the insurance industry in a variety of roles, accumulating a wealth of knowledge. He is currently Technical Manager for Towergate's motor division, providing expertise on all matters relating to motor fleet insurance, in particular haulage and self-drive hire fleets.