Considering the amount of risk your packages are subjected to once they are shipped out by your partner courier, getting package insurance can easily be more of a requirement than an option. However, this added safety feature comes with a price, so sellers tend to question its importance.
What does the shipping insurance cover? If you’re a seller who wants to make sure this business expense is worth every dollar, this article is for you.
What Is Shipping Insurance?
Shipping insurance is designed to cover some unforeseen mishap or delay happening to your shipment. Usually, insurance is used to compensate for damaged, stolen and lost packages.
However, not all packages are qualified to be insured. These items include artwork, luggage, personal effects, breakable items, liquids and hazardous materials. Different couriers have different policies when it comes to insurance coverage, so it is best to coordinate with your trusted provider regarding these prohibitions.
Frequently Asked Questions
To protect your packages from damage or loss during shipping, carriers often seek help from third-party companies. While getting insurance is highly recommended, it is still something that you have to pay for on top of the shipping fee. Thus, it will still depend on the seller if they would want to buy insurance.
Here are some frequently asked questions with regards to what it covers.
1. Does insurance already cover my package?
Yes, a domestic parcel has automatic protection. You can get up to $100 if your package is lost or damaged.
2. Are my items excluded from insurance coverage?
As previously mentioned, there are certain items that insurance does not cover. Pieces of jewelry or any other small yet expensive items, for example, are highly likely to be lost, so the insurance does not cover them.
3. When should I file a claim for my lost or damaged package?
Make sure that you report your claim as soon as you realize that something has happened to your package. However, you need to take note that some couriers have a specific period of validity for claims. For example, FedEx entertains reports for only 60 days, while UPS gives at least five months for filing of claims.
Packages are often lost or inaccurately tracked, especially in international shipping. If you’re hesitant about shelling out money for an insurance fee, think of it as a safety net. Getting one will make sure you will be compensated with the amount you declared the package is worth.
For international packages, make sure that you document and gather evidence immediately after you get a report that your package did not arrive at the estimated time and place. Doing this is important so that your partner courier can process your claim. Solid proof and documentation will make the reimbursement process faster and easier.
4. What is 3rd-party shipping insurance?
Third-party shipping insurance is insurance provided by a different company other than the courier itself. While most couriers offer insurance for packages, there are third-party providers that usually offer insurance for a much lower cost. These providers also offer more coverage when it comes to the types of products. It could be a good alternative if you’re looking for cost-efficiency and peace of mind.
When it comes to shipping, you should expect the unexpected. Shipping insurance protects your package against loss and damage with fast, hassle-free claims. You just have to consult with your trusted courier about the available options for your packages.
Put your business in the hands of a partner courier that can provide you with the most safety, efficiency and consistency. Contact Stallion Express today to know more.