As someone who manages an online or retail store you know that shipping is an essential part of your operations. Unfortunately, some packages may be damaged, lost or stolen during transit. Investing in shipping insurance can protect your business from financial losses.
If your shipment is lost or damaged Phase V can file a claim with the carrier on your behalf. Many carriers offer up to the first $100 in declared value. It may be worthwhile to invest in additional shipping insurance in the event that your package is lost or damaged
Shipping insurance is a good idea for a few key reasons:
- Protection from Financial Loss: Shipping insurance provides financial protection in the event that your packages are lost, stolen, or damaged during transit. Without insurance, you could be responsible for covering the cost of replacing the lost or damaged items, which can be a significant expense for your business.
- Peace of Mind: Knowing that your packages are covered by insurance can give you peace of mind and help you avoid worrying about the potential risks of shipping. This can allow you to focus on other aspects of your business and help you avoid unnecessary stress.
- Better Customer Service: If you offer shipping insurance to your customers, it can improve your customer service and reputation. If a package is lost or damaged during transit, you can quickly file a claim and replace the item, which can help maintain customer satisfaction and loyalty.
- Requirement by Some Shipping Providers: Some shipping providers may require you to purchase shipping insurance in order to use their services. By having insurance in place, you can ensure that you’re meeting their requirements and avoid any potential issues with your shipments.
The cost of shipping insurance will vary by carrier, but for all carriers it depends on the value of the shipped item. Here are some common rate examples:
FedEx does not offer insurance, but they do have “FedEx Declared Value” to provide coverage for lost or damaged shipments, up to a certain value depending on the declared value of the package.
The Declared value rates are based on the declared value of the package, the shipping destination, and the type of shipment. FedEx also offers FedEx Declared Value Advantage for those who need to ship higher value items such as jewelry, gemstones, pearls and precious metals on a regular basis.
UPS offers InsureShield for UPS Packages, which is protection for shipments including high-value, fragile, time-sensitive or perishable goods. Pricing will depend on the company’s risk level
If you need help understanding what type of shipping insurance is best for your company, Phase V can help. Our experts are here to guide you through the process so you can enjoy the peace of mind knowing your packages are protected.