See Blog Categories

Table of Contents
Primary Item (H2)

What Does Insured Shipping Mean? A Guide to Doing Business Properly

Diana Zheng
  •  
June 1, 2021

Businesses rely on couriers to get their products to customers. Most times, the delivery process is reliable, but sometimes packages get damaged or lost. Both the seller and the buyer should be prepared for that.

According to SaleCycle, 80.2% of online purchases are returned because of damage, and most customers returning products want expedited shipping or discounts. As a seller, you can solve this in two ways: insured shipping or paying out of pocket.

Of course, paying out of pocket will drain your income because most insurance companies charge per package. Thus, to avoid bad reviews, insured shipping is the way to go. 

What Does Insured Shipping Mean?

Insured shipping protects shippers from lost, stolen or damaged packages. If your products don’t reach their destination or arrive damaged, you will be entitled to a reimbursement for the declared value of the items. 

What does shipping insurance cover? As long as the shipping is insured, the package will be covered. However, most couriers require time to process these claims. Sellers then just send another item from their inventory and worry about the reimbursement later so that they don’t keep customers waiting. 

Should I Get Shipping Insurance?

Getting insurance for every package you send can eat up your time and budget. To promote efficiency, shipping companies should directly provide insured shipping to protect outgoing packages.

However, note that not every package can and should be insured. Here are the different situations when sellers can consider insured shipping. 

Valuable Items

The chances of a regular package getting lost or damaged are small, so getting insurance for them might not be economical. However, if you’re sending a valuable item and it gets damaged or lost, you cannot afford to shoulder the cost. As a rule, consider insuring anything that costs over $1,000. 

Fragile Items

It’s generally not a good idea to buy fragile items online. However, if you do sell them, you better insure your shipment so that you’re reimbursed if it gets damaged or lost. 

Even if you get insurance, protecting your package is still necessary. Your shipping partner should offer materials that can protect fragile items, such as bubble wrap, bubble mailers and packaging tape. 

If You Have a New Shipping Partner

Loyalty and familiarity are good for business. When you have a shipping partner, you know how they operate and how they handle your packages. In some cases, however, you might need to switch companies, and you’ll be unfamiliar with how they do things. Insuring your packages will protect you until you can be certain about the quality of their service. 

3rd-Party Shipping Insurance

Getting insurance from your logistics partner should be your primary option because they can offer favourable rates in addition to your shipping fee. However, if you must get it from a third-party shipping insurance provider, make sure their offer is affordable. Third-party insurance rates range from 1.05% to 3% of the package’s declared value. Any higher than that might be too expensive to maintain. 

When in Doubt, Ask for a Payout

You can never be too careful when shipping your customers’ orders. Bad luck can strike at any time, and there is always the possibility of your product being mishandled, damaged or lost along the way. Even if these things are out of your control, you can still mitigate risks by getting your shipment insured. 

Let us help you protect your business, your customers, and yourself. If you’re looking for a logistics partner that can offer you low-cost shipping with affordable, full-coverage insurance, contact us at Stallion Express.

Get started today! Ship faster, smarter, cheaper with Stallion.

Get Started Today.  Sign Up for Free!

Join the Stallion Newsletter

You’ll receive the best tips, strategies, and news on Canadian ecommerce.

Hear what online sellers in Canada are saying

"Stallion Express is a game changer for small business owners like myself. My online store wouldn't be where it's at today without the Stallion Express team."
Dorothy Wong
"Outstanding service. Delivery is always on time. Accessible location. Expert staff. There's nothing else I could ask for."
Norma Joseph
"Stallion Express has been fulfilling my shipments with excellence for the longest time. With their quick actions and unparalleled customer service, they are the best shipping company."
Lena Hulsey
See more articles from same author
State Of E-Commerce: Trends, Challenges, and Opportunities in 2024

Currently, the eCommerce landscape is evolving faster than we imagined. Every brick-and-mortar store had seen unprecedented opportunities and overwhelming changes. Some of the switches we saw were technology developments and consumer behaviour shifts. With these adjustments, companies must keep up with the latest trends and developments in the eCommerce industry. They should know what’s happening […]

Read More
Streamline Shipping Processes with Integrated POS Solutions

For businesses of all sizes, having an efficient shipping process is crucial to boosting customer satisfaction and profitability. However, managing the shipping process can be challenging, especially when dealing with high order volume. Manually entering data, calculating costs, and printing labels are all time-consuming and error-prone tasks. This is where integrated POS (Point-of-Sale) systems come […]

Read More
5 Canadian E-Commerce Companies To Level Up Your Business

This article might pique your interest if you want to boost your e-commerce game in the thriving Canadian market. Check out these seven awesome Canada e-commerce companies that can take your business to the next level. These platforms offer top-notch services to help you reach your goal, from selling products to managing your online presence. […]

Read More
1 2 3 90
See more articles from same category
The Best Shipping Service For Small Businesses in Canada

Efficient shipping services are essential for small businesses in Canada to meet and satisfy customer demands and stay ahead of the curve. Choosing the right shipping service can significantly impact your revenue and customer satisfaction. With numerous options available, from major carriers to specialized logistics providers, it can be challenging to identify the best fit […]

Read More
Global Container Shipping Statistics in 10 Years

Over the last decade, the global container shipping industry has experienced remarkable transformations, enhanced by technological innovations, changes in trade patterns, and evolving consumer demands. As the backbone of international trade, container shipping is crucial in connecting economies across continents and facilitating the movement of goods ranging from raw materials to finished products. This introduction […]

Read More
What is Dropshipping: Learn the Definition and Processes (2024)

Have you ever dreamt of starting your own online business but felt overwhelmed by the idea of managing inventory and shipping? Then, dropshipping might be the answer you’ve been looking for! This post will discuss the following topics: All these things answer the biggest question of launching your own successful dropshipping business! Key Takeaways What […]

Read More
[forminator_form id="6990"]
Stallion Express
Ship faster, smarter, and 
cheaper with Stallion Express
© 2023 Stallion Express  |  Legal
|  Sitemap
Ship faster, smarter, and cheaper with Stallion Express
Stallion Express 2020  |  
Legal
menuchevron-downcross-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram