I NEED TO INSURE...
What is shipping insurance?
Shipping insurance is a service that protects customers against lost, stolen, or damaged packages. If an insured package does not reach its destination, or if it is damaged when it’s delivered, then the shipper is reimbursed the declared value of the items in the package.
How much does shipping insurance cost?
For all carriers, the cost of shipping insurance depends on the value of the shipped items. The more valuable the items, the more expensive the package is to insure. Check out how the major carriers charge for their insurance coverage.
Is shipping insurance worth it?
Whether or not shipping insurance is worth the cost depends on your shipping volume and the value of your items. The chance of an average letter or package getting lost or damaged is relatively small. But if you are shipping a high volume of valuable items, then shipping insurance will likely pay for itself.
1. The casual shipper
The average person sending a letter or package generally doesn’t need shipping insurance unless the items are particularly valuable.
2. The business shipper
Business shippers on the other hand, are constantly shipping items of value. Higher order volume means that some of your packages will eventually get lost or damaged. And the more valuable your products are, the more you stand to lose. For e-commerce businesses shipping very expensive items, shipping insurance may be a no-brainer.
When in doubt, get shipping insurance
For both casual and business shippers, the rule is the same: If you think you might need shipping insurance, get it. It only costs a few bucks, and if your package is valuable enough that you’re considering insurance, then the small investment is worth the potential upside if something goes wrong.
Conclusion
A recent survey found that 70% of customers are unlikely to shop from an online store after a poor delivery experience. Lost and damaged shipments are unavoidable, but you can still win customers back by quickly reimbursing or replacing the items. Shipping insurance allows you to do so without taking a loss.
Shipping Insurance FAQs
Orders lost and damaged in transit with the carrier can have a major impact on your business. Check out some of the most frequently asked questions about shipping insurance.
How much does it cost to ship with insurance?
It depends on the carrier and the value of the shipped items. The costs of shipping insurance from each of the major carriers and postal service are listed above. There are third-party shipping insurers as well that tend to be even cheaper than the major carriers.
How does shipping insurance work?
To get reimbursed when a package is reported missing or damaged, file a claim with your carrier or insurer. You will need to submit documentation proving the value of the items.
The carrier may have to search for a product if it was lost or stolen, which can take up to 10 days. Otherwise, claims processing typically only takes a few days.
Do 3PLs handle shipping insurance?
Some third-party logistics (3PL) providers do while others don’t. And some 3PLs will provide insurance but require the seller to handle claims processing on their own.
Here at Yedaiah, in every verified case of loss or damage, we can file claims with the carriers on the customer’s behalf .
