Over the years, buying and selling goods and services on the internet have become very popular. While most shipments reach their destinations on and intact, there are still inherent risks with shopping. These days most customers are comfortable with buying high-value products through eCommerce. With eCommerce, there is always a risk of the package not reaching the recipient in the right condition. If the idea of damaged orders, loss, or theft of your products at the hands of a courier service makes you nervous, then perhaps shipping insurance is something that you should consider getting.
What Is Shipping Insurance?
Shipping insurance is a policy that a shipper can purchase to get reimbursed for the shipments are lost, stolen, or damaged in the transit with a courier. this insurance can be bought at the time of shipment. The costs may vary depending on the declared value of the good.
Types of Insurance
It goes without saying that the higher the value of an item, the higher is the incentive to insure it.
- Declared value. Most of the carriers and insurers focus on eCommerce shippers declared value of the package- what you say is the worth of the contents of the package. If something goes wrong in transit, then you will have to file a claim, wherein you will have to prove the worth of the item. The insurer will make sure that you get that value or the declared amount.
- Items covered by included insurance: All carriers provide free coverage for some items up to a certain amount. The certain amount may vary from carrier to carrier. Keep this in mind that this applies to the entire package. So, if you are planning on shipping multiple items in one package, that’ll add up to a higher value than the stated limit. You may need to purchase supplemental insurance to be fully covered and protected.
Advantages of Getting Shipping Insurance
Have peace of mind
There is no better feeling than to know that someone has your back. That is exactly what shipping insurance does for the insurance holders. The shipping insurers provide assured protection against the damage of any goods. Especially if you’re a retailer who buys and transport goods in bulk via ship, you should definitely take advantage of this by getting your goods insured.
Avoid any huge financial loss
Life is so unpredictable; anything can happen at any given time. Even the best shipping companies can be helpless in the face of a natural calamity. That is why shipping without insurance may lead to a great financial loss if it is damaged or misplaced during transportation. The shipping company will not be able to make up for the loss of sentimental value of your package but will definitely compensate for damage in terms of money.
Always protected from catastrophic events:
Catastrophic events like storms, shipwrecks, explosions, pirate attacks take place time and again. Nobody is wishing for the occurrence of suck events to happen but the most that you can do is take advantage of the insurance provided by shipping insurance companies. This is the best that you can do to assure the safety of your package if such casualties occur.
Your insurer will handle the losses:
The people transporting your cargo cannot be held responsible for any causes of damage that occur in transit. Hence, relying on the carrier of your goods is not the best idea. When you get shipping insurance, your insurer will handle this bit for you. So, you’re just delegating responsibility o the insurers who are protecting your parcel.
Difference Between A Buyer and A Seller Getting Insured
Generally, it is the seller who buys shipping insurance since they are the ones responsible for the product up to the point of the product being delivered. They risk the monetary losses that they will have to incur, so they have more incentive if they purchase shipping insurance.
Very rarely, buyers invest in shipping insurance. This happens if they are in a location where the packages have a lesser chance of being secure.
Is Shipping Insurance Worth Getting?
If you’re still wondering if shipping insurance is really worth purchasing. Then you need to stop. The best and most reliable shipping carriers have admitted that there are times when things can go awry. The packages constantly keep changing hands. The value of the package and the shipper’s individual risk tolerance is a key factor in deciding if shipping is worth getting or not for you.
Few Things you need to know before you purchase shipping insurance.
There are shipping insurance caveats
Make sure to carefully read all the fine print before you go ahead and ship your parcel. It is important to know which items are not covered. Different carrier services may have a different list of items that they may or may not insure. for eg. UPS does not cover coins, cash or precious stones. Similarly, carriers don’t always cover everywhere you want to ship. There are certain destinations that they do not cover and you need to know which places fall into this category. Packing requirements can be another sticky area. They do not cover packages that are not packaged properly.
Filing a claim is required
If your package is lost, damaged, or does not reach its destination, the insures will not send you a check directly. You need to file a claim to make them aware of this occurrence. You need to start your claim as soon as you can because most carrier services have a cutoff date within which you will have to file the claim. FedEx requires you to file a claim within 60 days since you purchased shipping services. This may vary from carrier to carrier.
You will need documentation
Making sure that you have supporting documents for any claim you file is always smart.. You will need documentation to prove the value of the content of the parcel, to give evidence of what the package holds. It is always wise to keep documentation of the good at both the origin and the final destination. In cases of damaged goods, a series of photos of the item is which condition they’ve arrived supports your claim.
Expect to wait
Sometimes, this process may take time. Once the documentation and the claim have been processed, the insurance process very smooth. There is no guarantee as to how much time the completion of the process will take place.
One important factor before choosing shipping insurance is to choose the right shipping partner. Dash101 is a great option to outsource your shipping. They not only help you improve your shipping experience but takes a level higher with reduced shipping costs and secure delivery
