ABI clarifies goods in transit cover amid border delays

The Association of British Insurers (ABI) has warned that the latest Covid restrictions as well as the impact of travel delays on freight transport are “raising a number of questions for the sector”. 

The association has now said it wants to provide “as much clarity as possible” for questions regarding goods in transit cover, and whether cover can be secured for perishable items affected by the current port delays.

It comes as severe delays have been reported at Dover after the UK-France borders were closed to hauliers amid rising coronavirus cases, as well as a new strain of the virus emerging in Kent. 

According to the BBC, there are now calls for drivers moving perishable goods, such as seafood and salmon, to be prioritised after France and the UK reached an agreement over their shared border.

EU nationals and hauliers are now able to travel between ports if they have had a recent negative test. However, the BBC warns it could take “days” to clear the backlog.

In a statement, the ABI said: “We understand this is a challenging time for businesses and we’re keen to provide as much clarity as possible for those querying whether goods in transit cover will apply to any perishable items affected by the delays.

“Goods in transit cover primarily provides cover for damage to goods from an insured peril – such as due to a vehicle accident, or loss or theft of the goods.” 

It added: “Cover is available for stock deterioration, but this usually covers breakdown of refrigeration equipment as opposed to cover for delays in transit. 

“In general, loss damage or expense caused by delay are a standard exclusion, but we would recommend that those affected review their policy wording and if unsure, speak with their insurance broker, or insurance provider.”

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