The Cost of Business Building Insurance What You Need to Know

Let’s pull back the curtain on a lesser-known but absolutely crucial topic for South African small businesses: transit insurance. If your business delivers goods, receives inventory, transports products to market, or relies on moving physical items—this is a conversation worth your time. 

What Is Transit Insurance? 

Transit insurance, often called goods-in-transit (GIT) insurance, is a policy specifically designed to cover the risks businesses face when goods are on the move. Whether you’re transporting products by road, rail, sea, or air, transit insurance offers financial protection against damage, loss, or theft of your goods while they journey from point A to point B. 

Picture this: a van loaded with your stock gets into an accident on the N1, or a consignment is stolen during a stopover. Without transit insurance, you could be staring at a significant, unplanned loss. 

What Does Transit Insurance Actually Cover? 

• Damage to Goods: From a collision or accidental drops to rough handling—if your goods arrive dented, broken, or unusable, GIT insurance covers the repair or replacement costs. 

• Theft & Hijacking: South African roads are notorious for hijacking and theft. Transit insurance protects you if your goods are stolen en route. 

• Natural Disasters: Floods, hail, or even fires can strike during transit—these risks are often included in comprehensive cover. 

• Malicious Damage: Vandalism, riots, or any intentional harm to your goods in transit. 

• Deterioration of Stock: Some policies even include cover for perishables that spoil due to covered incidents. 

Why Is Transit Insurance Especially Important for Small Businesses? 

• One Incident Can Be Disastrous: For a small business, even the loss of one delivery could mean days of lost revenue, broken customer trust, and a big financial setback. 

• General Business Insurance May Not Cover Transit: Many business owners wrongly assume their office insurance covers goods while in transit—it usually doesn’t. 

• Transporters’ Liability Is Limited: Relying on a courier or transport company’s insurance? Their coverage is often limited, slow or may not fully compensate for your loss. 

• South Africa’s Unique Risks: From unpredictable weather to high rates of theft and road accidents, South Africa’s landscape makes transit insurance not just “nice to have” but, for many, essential. 

Common Misconceptions—Busted 

• “I don’t ship enough to justify it.” Even one delivery gone wrong can set you back thousands of rands if you’re uninsured. 

• “My transporter is responsible.” Most transporters’ liability is capped and does not cover every risk or the full value of your goods. 

• “My general business insurance will protect me.” Standard business cover rarely extends to goods in transit—dedicated policies are required. 

Do YOU Need Transit Insurance? 

Ask yourself: 

• Do you send, receive, or deliver goods regularly? 

• Would a lost, damaged, or stolen consignment cause a significant financial blow? 

• Are you using transport routes or shipping high-value items at higher risk of crime or accidents? 

If you answered “yes” to any of the above, transit insurance is a wise—and often affordable—investment in your business’s resilience and survival. 

How to Get the Right Cover 

Transit insurance can be tailor-made to your business’s specific needs. Policies can cover: 

• Single shipments or all movements within a period. 

• Domestic, import, or export deliveries. 

• Specified risks or all-risks options for comprehensive protection. 

Comparing policies from reputable insurers or working with a knowledgeable broker can help you secure a plan that matches your risk (and your budget). 

Bottom line: If you depend on getting your goods safely from A to B, transit insurance isn’t just for big enterprises or logistics companies. It’s for any business that wants real peace of mind and the ability to bounce back if the unexpected strikes. In the world of business, protecting what moves you really does keep you moving forward.