What Is Shipping Insurance & Is It Worth It? | ShipCalm

If you’re shipping something of value, chances are you want it to arrive safely and in a timely manner. Especially as a merchant or eCommerce business, making sure products ship successfully can be the difference between a good financial year and a great one. The rise of online shopping and consumerism only forecasts that this will become more important as time goes on, with growth typically experienced over a decade occurring in just three months in 2020. As a business owner, protocols Shipping guidelines and best practices can get quite complicated, especially once you start shipping things like alcohol, you tend to have more shipping restrictions.

With so many items that can go wrong during shipping, taking the step of insuring these goods is a lucrative idea. Shipping insurance may seem complicated or overwhelming to some, but once understood, it can literally make or break a company’s efforts to satisfy its customers. For those looking to learn more about shipping insurance, you’ll be happy to know what we’ll cover:

Reading: What does shipping insurance cover

  • what is shipping insurance?
  • what does shipping insurance cover?
  • how much does shipping insurance cost
  • third party shipping insurance
  • what is shipping insurance?

    In simpler terms, shipping insurance is the protective measure to secure products for shipment. Shipping insurance can protect goods from a variety of unfortunate circumstances, typically including theft, damage, improper handling, and more. Shipping insurance assumes financial responsibility for these goods up to the point they arrive at the designated shipping location. Especially as an exporter, there are numerous steps and stages in the shipping process that can lead to delivery complications, and having a safety net for these circumstances is priceless. Rather than bite into shipping fees on goods that weren’t delivered correctly and lose out on potential revenue, the exporter can trust the shipper to take financial responsibility.

    what does shipping insurance cover?

    With an increase in online sales comes an increase in shipping insurance options for eCommerce businesses and online merchants to use to their advantage. The situations that are covered by shipping insurance will vary widely depending on the shipping insurance policy chosen and the shipping company providing the services. Shipping insurance typically covers incidents over which the seller has no control, such as delivery delays, damage to goods, or poor shipping practices that occur prior to delivery. each provider has unique requirements, restrictions, and coverage details that sellers should consider before choosing their preferred insurance provider.

    increase shipping insurance

    United Parcel Service is a common option for those looking to purchase shipping insurance and is a trusted carrier for those looking to insure their products. ups offers insurance through the ups licensing affiliate ups capital insurance agency inc. ups capital coordinates insurance details to ensure customers get a great policy based on their current shipping needs, with online quotes available through insuresheld instaquote. Outside of its insurance options, UPS also offers customers to declare the value of their item, with a certain level of coverage already provided, but not necessarily providing insurance.

    See also: How to Write an Estimate for an Insurance Claim (A Complete Guide) – QuikClaims

    ups can be a bit particular about using their designated insurance carrier to ensure products are shipped correctly, but they also have some limitations on coverage that should be considered before choosing ups as your preferred carrier. ups assumes no responsibility for loss or damage resulting from improper packaging, checks, data stored on media, perishables, natural disasters, acts of god and many more. If you’re shipping items that aren’t on UPS’s extensive list of hassle items, they might be a carrier to consider.

    fedex shipping insurance

    fedex, like its competitors, offers customers the ability to get coverage for their items if they want to ensure that the package arrives safely and in a timely manner. each package is automatically covered for $100, and if the declared value of the package is higher, additional coverage can be easily purchased in person or online. Once a customer wants to obtain shipping insurance for an item, they must declare its value, with different values ​​set at specific levels of coverage.

    fedex is also particular about how customers declare the value of their items and have maximum value limits on select products, such as items of extraordinary value or difficult to determine. these items include fine art, antiques/collectibles, precious metals, and more. while this does not mean that they are denied insurance entirely, it does mean that the full value of the item may be lost if there are issues within the delivery process. In addition, if an item arrives broken but the seller can repair it, FedEx will not be responsible for the failed delivery.

    united states post office (usps) shipping insurance

    If you are looking for shipping insurance in the United States Post Office, you will be in experienced and reliable hands. USPS covers up to $5,000 for goods or products that are lost, mishandled, or missing while in USPS custody, and interested customers can purchase this shipping insurance in person or online. guaranteed mail and global express will automatically include an amount of insurance coverage.

    If you’re in a time-sensitive industry or need something shipped quickly and reliably, USPS may not be the place to be sure. USPS does not cover expedited delivery or guaranteed delivery times, so shipping times may vary and express shipping is not something that would be compensated for if the shipment is late. fast shipping has become a big selling point for consumers, and two-day shipping has become the gold standard. While USPS has options to ship your products quickly, they won’t pay the bill if something is delayed along the way.

    dhl shipping insurance

    See also: Becoming an Agent

    Dhl, especially common for international shipments, is another well-known company that provides comprehensive insurance options so merchants can feel confident that the delivery will go smoothly. Through DHL Shipment Value Protection and DHL Security Services, customers can gain protection against physical loss and damage in transit, with special security services to ensure customer assets are protected throughout the shipment. delivery process and supply chain. dhl also boasts a fast customer satisfaction rate, with customers compensated for problems within 30 days.

    Unfortunately, if the value of your item is less than $100, dhl does not automatically assume liability free of charge. to guarantee that any level of return will be made is by purchasing shipping insurance at an additional cost. DHL also does not provide coverage for items that are indirectly lost or damaged, or items that are lost or damaged due to delays. Like USPS, it’s a great option if you want to ship to a specific international location, but it won’t guarantee fast and timely delivery.

    how much does shipping insurance cost

    Shipping insurance costs will vary widely depending on the type of package being shipped, how often shipments are made, and the value of the shipment. Each carrier will have competitive insurance rates, with DHL being the only outlier solely due to the international nature of the shipment and the unique factors involved in customs clearance.

    usps insurance

    fedex insurance

    increases insurance costs

    third party shipping insurance

    While we’ve covered the major carriers that provide shipping insurance, let’s not forget some of the amazing third-party shipping insurance options available for merchants to explore. Every business is different, with unique shipping needs that may be best addressed with a third-party provider. There are many advantages to choosing third-party shipping insurance, such as the ability to insure items between all major carriers and ship unknown carriers for approval. The 3rd party nature of these options allows sellers to have a single point of contact for any issues that arise and they have excellent tracking software that gives merchants additional peace of mind.

    These features can save online sellers countless profits in the long run, so it’s crucial to understand all of your options before pulling the plug on an insurance provider. Some of the more popular third party shipping insurance companies include:

    • route: The worst part of shipping complications is not knowing where your package is in the shipping process. this is where routing comes in and allows your shipping services to thrive. route insurance policy and contract features a modern tracking experience that provides peace of mind for both seller and consumer. customers and vendors can easily report issues through the routing app, reducing delivery delays and saving thousands of dollars in potential profit.
      • shipsurance: With competitive insurance rates that are typically 90% lower than competing carriers, shipsurance seeks to become a business partner rather than just a insurance provider. Shipsurance is an insurance agency, not a shipping service, which allows them to save money and offer lower insurance rates. They drop declared value at the door and secure packages employing a collective team of experienced carriers with the goal of getting items delivered correctly in a cost-effective manner.
        • ecabrella: This shipping software company offers customers an alternative option to the main courier services by offering competitive rates and customized parcel insurance plans that complement the shipping process. shipping specific to your company. domestic and international shipments are equally protected and shipping restrictions are minimal.
          • parcel insurance plan: lost and damaged packages insured by pip nationwide, with international options also available. They provide coverage for many items that other carriers don’t, including electronics, cell phones, jewelry, and more. pip is perfect for those who know they are shipping products that get a bit complicated with the major carriers.
          • let shipcalm help you with your shipping needs!

            Shipping management can be a complicated process, with countless delivery and shipping factors to consider when choosing the best delivery practices and shipping insurance. Assuring customers that their orders will arrive as expected is crucial to business growth and prosperity, and choosing to insure these items gives business owners the opportunity to reduce sunk costs. shipcalm is a third party logistics company that understands the full scope of inventory and shipping management. our fulfillment services are extensive, with the goal of helping business owners focus on quality customer service while we focus on product delivery. Request a custom price from Shipcalm today or contact us today to learn how we can innovate and simplify shipping services for your business!

            See also: Selling Health Insurance Across State Lines Doesnt Lower Costs

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