Do you have an online store and want insurance protection for the goods you ship to customers? Well, in that case, shipping insurance can be very useful. However, there are some things to know before buying one for maximum peace of mind and value for money.
Let’s Discuss Different Shipping Insurance Types:
Before we shed light on other factors that should be considered to make shipping insurance more efficient, you should know the most common types of shipping insurance. This will help you decide which one to go for from the start and plan your shipments more effectively.
- Carrier Insurance: It’s provided by your carriers like USPS, DHL, and FedEx, etc. You typically get $100 worth of coverage for the shipment by default. However, the cost ranges from $0.75 to $0.85 for every $100 value declared over the default covered amounts for additional coverage.
- 3rd Party Coverage: This is where you work with a 3rd party insurance service provider like Paradiso Insurance to cover your shipment – you no longer rely on your carrier for coverage. The main advantage of using 3rd party insurers is their competitive rates.
- Self-Insuring: This is exactly what it sounds like; you insure the shipments are sent to your customers by yourself. This is done by adding an additional insurance fee at the checkout page, and a pool of money keeps growing with every product sold. You can then use that amount to offer coverage if a claim arises. However, it can be difficult to make the product price attractive when an insurance fee is levied.
So, Courier vs. 3rd Party Shipping Insurance – Which One is Best?
If you ask us, we’d suggest going for 3rd party shipping insurance and not because we are one of them. But because it beats courier’s shipping insurance in every area.
A 3rd party shipping insurance is cheaper than courier insurance, especially for high ticket items with thousands of dollars in declared value.
Moreover, the claims processing is faster with 3rd party insurers. Unlike couriers, their sole focus is to offer insurance, so they already have the resources and manpower to process claims.
3 Tips for More Efficient Shipping Insurance:
- Go Through The Fine Print Carefully: If you decide to get shipping insurance, pay close attention to the fine print. Go through it with a magnifying glass, especially sections containing coverage amounts, covered items, and claim denial conditions.
- Don’t Just Rely on Declared Value: If you’re getting shipping insurance from your courier, be sure to get additional coverage for items worth more than $100. This is because the courier with a $100 declared value is only liable to cover up to $100 in case you file a claim.
- Always File Claims As Soon as Possible: Once you discover your shipment is stolen, damaged, or lost, file a claim as soon as possible. Make sure to know the cutoff time of your courier and file the claim before it runs out.
Wrapping it Up;
Whether you’re an eCommerce store, a giant online retailer, or an individual who is selling stuff as a side hustle, Paradiso Insurance offers top-class shipping insurance for every need. Feel free to call us at (860) 684-5270 and consult with the experts today!