What Is Shipping Insurance
Shipping insurance is a policy that helps you cover lost, stolen, or damaged shipments during transit with a carrier. The shipper will be able to purchase coverage for one package or a group of packages, or even a large cargo or freight shipment. This insurance is commonly purchased for expensive or valuable items. A business owner could easily buy this insurance and then add this hidden cost to the item’s price. Consumers also can purchase shipping insurance when they are sending a valuable package like jewelry to a friend or if they are moving things to another city. Either way, it is a safe option to get shipping insurance if you want to protect your items from unseen damages.
Shipping Insurance And Cost Of AAn E-Commerce Shipment
The cost of e-commerce shipment varies based on
Value of the item and the volume of the shipment. Consumers looking to purchase shipping insurance for a single package will have to pay a higher rate than an e-commerce company that is sending a large number of packages or monthly packages. This happens because a lot of shipping insurance providers offer volume discounts.
Most businesses purchase from a separate insurance provider to get access to discounts and wholesale rates. Carriers worldwide have offers that can be bought for individual shipments. For most carriers, the higher the product value, the higher the insurance cost.
How Does Shipping Insurance Work
Shipping insurance must be purchased before a shipment is sent, and it cannot be purchased after a loss or damage has been incurred. You can easily buy the shipping insurance from a carrier directly like FedEx or get it from an insurance provider.
If you require shipping insurance for freight or cargo, you must contact an insurance provider. If you want insurance for packet shipments to different customers, you can get it from the carrier. Although if you’re going to ship expensive orders frequently, you should contact an insurance provider for a quote. You might end up getting a volume deal.
Factors To Be Considered Before Availing Of E-Commerce Shipping Insurance
Here are some of the factors that can help you decide if you want to purchase an insurance or not –
- Product costs
This is one of the most critical factors in determining whether you should purchase shipping insurance for your products. For example, if you ship fine jewelry, you might want to get insurance for this shipment because losing such an item would represent a tremendous monetary loss.
- International shipping
International shipping is riskier because more loss and damage can be incurred as it travels farther and undergoes different types of carrying. If you frequently ship internationally, you should contact shipping insurance to get a quote. You might also avail discounted rates that depend on the number of shipments and product value.
- Customer expectations
If the customer’s order is lost, they would expect a free replacement. Many large corporations offer this, so most consumers expect this from small companies as well. Depending on the value of your product, your shipping insurance will allow you to provide reimbursement and replace the items at a lower cost.
What Does E-Commerce Shipping Insurance Cover
Every shipping insurance provider has its own set of guidelines on what is covered, so make sure that you check that. Some things that aren’t commonly covered include fine arts, tickets, and perishable cargo. When you are researching for the providers, make sure that you look at the kind of damage that is covered and what is not covered.
Some of the clauses that could be a part of shipping insurance packages are –
- Compensation in case of damage or financial loss
- Compensation in case of an undue shipping expense
- Reimbursements because of a loss of import and shipping documents
- It also depends on whether the shipping insurance is applicable outside the country of its origin
The Process Of Filing Claims To Get The Shipping Insurance Reimbursement
If you need to file a claim for goods that were lost or damaged, these are the steps you must follow.
- Login to your insurance provider – Most insurance providers have online portals where you can create your profile when signing up.
- File a claim once you log in. You can file the claim on the company’s online portal and provide the required information, like the tracking number, the carrier, the product value, and more.
- Use the claim number to check progress-You will be able to access your claim number on the platform but make sure to keep it handy if you do not receive prompt reimbursement. This number can then be used as a reference when communicating with customer support.
Why Is It Essential For Your E-Commerce Business To Have E-Commerce Shipping Insurance
Shipping insurance is essential because it will help you protect your and your customers’ losses and disagreements. It does cost you money, but the expense is worth it in the long run. As an e-commerce business owner, keeping your customer satisfaction in mind is vital. In case of any mishaps, insurance will ensure that you can serve your customers by providing reimbursements or replacing a particular product.
If your company involves inexpensive shipping items, you must consider shipping insurance to save yourself any trouble that might come your way. There are many options available for shipping insurance, and you can easily find one that suits your requirements and needs once you complete your research.