Why, when & how should I use shipping insurance?

shipping insurance

After making an order online, all customers expect their package to arrive perfectly and on time. However, some aspects, such as poor weather conditions, extreme carrier’s demand, and package mistreatment during transit, are out of your control. Here is where digital shipping insurance comes in handy as it helps get full coverage against loss, theft and damage.

What is Shipping-insurance?

Merely put, it is an insurance policy purchased by a shipper to get refunds for lost, damaged, or stolen goods in shipment with a carrier. You can get this package insurance through third-party vendors or couriers during shipment, and the costs vary based on the goods’ value.

Why is Shipping Policy Valuable?

As a business owner, you assume that your goods will reach the client in perfect condition because you’re paying shipping expenses to the delivery company. Well, it’s worth noting that your package may get misplaced or damaged because most delivery companies dispatch millions of packages daily to different parts of the world.

It is wise to purchase a shipping insurance for your packages to minimise costs that come from loss or damage. Here are the benefits of buying this policy:

  • It boosts customer confidence.
  • Packaging your goods correctly means you will get compensation should it encounter loss, theft and damage.
  • It offers you security because you can give your clients a quick service when a problem occurs.
  • You will get a full coverage against loss and shipping expenses, which lets you send a replacement to clients for free.

When is Shipping Policy the Best Option?

Although it is not mandatory to buy a shipping policy, it is advisable to insure packages that will cost you an arm and a leg in the event of a loss or damage. Shipping policy is also vital when it comes to shipping internationally. Ultimately, several parties will handle your goods during international shipping, which increases damage and loss issues.

Buying an extra shipping policy is not obligatory because some shipping companies provide this policy by default. Therefore, it’s sensible to always check the chosen carrier’s shipping terms and conditions before buying a policy. If the company doesn’t offer the desired amount, you can opt for a third-party policy.

How to Use Shipping Policies

You can either use the carrier’s policy or buy from a third-party agent when shipping your goods. Here is a review of the two options:

Carrier Shipping Policy

It is already noted above that some carriers insure your packages by default, which is typically sufficient for inexpensive packages. Nonetheless, if there is no default policy or the value seems insufficient, you can acquire an additional policy for your shipments via your carrier.

Keep in mind that the terms and conditions for the policy differ from one carrier to the other. Always go through the carrier’s conditions so you know the terms to adhere to, the included and excluded refunds, and how to file for a reimbursement.

Third-party Shipping Policies

If carrier policies do not appeal to you, you can opt for these policies. A third-party shipping policy can be of significant help due to the following:

  • You can quickly submit claims from your phone, laptop, and desktop.
  • The rates are affordable.
  • Fast claims processing.
  • It is easy to insure for any amount.

Final Thoughts

Every business is different from the other one, and no policy fits all. In most cases, those who buy these policies tend to ship high volumes of valuable items like electronics, apparel, art, and jewellery. In such circumstances, the cost of replacing faulty or missing items can shoot and consume the profits. Buying the shipping policy gives your business peace of mind and lets you manage losses perfectly.

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