Goods in Transit Insurance: How to Choose the Right Cover in Kenya

Understand the Nature of Goods You Transport

Different goods attract different underwriting terms:

• Fragile items (electronics, glassware)
• Perishables (food, pharmaceuticals)
• High-value cargo (machinery, branded goods)

It’s important to note that most Kenyan GIT policies do NOT automatically cover breakage, spoilage, or temperature-related damage. These usually require specific extensions (for example, “breakage” or “deterioration of stock” clauses). Without these add-ons, losses caused purely by handling damage or temperature changes are commonly excluded.

Evaluate Transit Routes and Areas of Operation

Where your goods move matters. Some Kenyan insurers may exclude or strictly limit cover on high-risk routes or theft-prone corridors unless additional security measures are in place—such as:

• Vehicle tracking systems
• Armed or escort services
• Approved parking yards

Policy Limits, Liability & Underinsurance

Matching policy limits to shipment value is critical. In Kenya, underinsurance is common. When cargo is insured for less than its actual value, insurers may apply average clauses, meaning payouts are reduced proportionately—even when a claim is valid. This often surprises businesses expecting full compensation. Ensure:

• Each shipment is properly declared
• Sums insured reflect real cargo value
• Any sub-limits (especially for theft) are understood

Claims Process and Timing

Most Kenyan insurers require immediate notification of loss, often within 24 hours, followed by written documentation. Late reporting—without a clear and reasonable explanation—may lead to claim rejection or reduced settlement. Typical documentation includes:

• Delivery notes / invoices
• Police abstract (for theft or accidents)
• Driver statements
• Proof of cargo value

Prompt reporting and complete records significantly improve claim outcomes.

Weather-Related Losses (Important Clarification)

Adverse weather is often mentioned as a transit risk, but in practice: Weather-related damage is usually only covered if it directly causes an insured event, such as a road accident. Rain, flooding, or moisture damage on their own are frequently excluded unless specifically extended under the policy. Always check how “weather perils” are defined in your wording.

Cross-Border Coverage

Kenyan GIT policies do not automatically extend beyond national borders. Transport into Uganda, Tanzania, Rwanda, or elsewhere typically requires an explicit regional or cross-border extension. Without this, shipments may be uninsured once they leave Kenya—creating serious coverage gaps.

Role of Insurance Agencies

Working with a licensed intermediary such as Step By Step Insurance Agency can help businesses:

• Compare multiple insurers
• Review exclusions and security requirements
• Prepare documentation
• Navigate claims procedures

However, agencies cannot guarantee claim approval. Final settlement decisions always depend on policy wording and insurer assessment of the loss.

Bundling Policies (Fleet, GIT, Marine)

Some insurers offer discounts when GIT is bundled with fleet or marine insurance. While bundling may reduce overall cost, each policy still operates independently. Coverage terms, exclusions, and limits differ, so every section must be reviewed separately to avoid false assumptions of full protection. Lower premiums do not automatically mean broader cover.

Key Challenges Facing GIT Insurance in Kenya

Businesses commonly encounter:

• High theft exposure on major corridors
• Accident-related cargo losses due to road conditions
• Delayed claims from incomplete documentation
• Underinsurance leading to reduced payouts
• High premiums for SMEs
• Cross-border regulatory complexities
• Limited awareness of exclusions and extensions

Most disputes arise from misunderstanding policy conditions rather than insurer misconduct.

Conclusion

Goods in Transit Insurance is a valuable risk management tool—but only when structured correctly. In Kenya, coverage depends heavily on:

• Declared routes and transit points
• Cargo type and extensions
• Security measures
• Timely claims notification
• Accurate valuation

There is no “one-size-fits-all” GIT policy. Businesses should take time to understand exclusions, limits, and regional restrictions before moving goods.

Next Step

Businesses transporting goods should consult a licensed insurance intermediary to compare policy wording, exclusions, security requirements, and premiums before choosing GIT cover. At Step By Step Insurance Agency, we help clients structure Goods in Transit policies based on real operational risks—not assumptions—so shipments stay protected where it matters most.