- What is shipping insurance?
- What is the difference between shipping insurance and carrier limited liability?
- Why should I purchase shipping insurance for my business?
- How much does shipping insurance cost?
- Where should I buy shipping insurance?
- How do I file an insurance claim?
- Best practices when shipping for business with insurance
- How can I insure my shipments at Inxeption?
What is shipping insurance?
Shipping insurance, also sometimes referred to as "parcel insurance" or "cargo insurance", refers to the service of protecting against lost items, damaged items, or other mishaps through a major carrier. If a shipment doesn't reach the buyer in the shape it should be in, the shipper (or merchant) is eligible to be reimbursed for the declared value of products that were shipped via the insurance company or provider.
What is the difference between shipping insurance and carrier limited liability?
Carrier limited liability coverage offered by a freight or parcel carrier (e.g. postal service) is not the same as being insured for the value of the goods being shipped. Carriers have a legal financial responsibility to their customers when goods are lost or damaged, but only in certain circumstances, and only up to a certain amount.
The carrier limited liability insurance provided through your carrier will often reimburse damage or loss up to $100 for individual parcels, or for cents on the pound of the total weight for freight shipments. Even for this amount of compensation, the shipper must prove loss or damage is the direct result of carrier negligence. While you can purchase additional carrier liability coverage, the same rules apply. At Inxeption, we believe you should consider getting real shipping insurance that offers more comprehensive protection.
Why should I purchase shipping insurance for my business?
Damaged packages can ruin your brand's reputation, diminish customer loyalty, and increase switching potential among customers. If you carry shipping insurance, you will have the financial flexibility to offer immediate replacements or refunds or other services to compensate for the bad experience. For a business, the costs of shipping mishaps can be significant both in terms of time and money. To determine how to address loss and damage and if shipping insurance makes sense for your business, it depends on the volume of your shipments and the value of the products being shipped.
How much does shipping insurance cost?
Each provider prices shipping insurance a bit differently. It might depend on the zip code you are shipping to and what their specific insurance premiums are for the types of coverage they offer.
Using Inxeption, protection for your shipments is a seamless process and simply becomes part of the logistics transaction.
Where should I buy shipping insurance?
The advantage of working with Inxeption is that we want to help you Do Shipping Better. That means making it easy to offer you true shipping protection for your shipments. With some Transportation Management Systems, you only get carrier liability.
If you purchase shipping insurance externally or even directly through your shipping carrier, it is important to review the terms and conditions.
How do I file an insurance claim?
Depending on what carrier or type of insurance you are using, the claims process might vary. If you use a third party insurance provider, you might submit the claim and supporting documentation directly to their accounting or claims department as opposed to the carrier directly. If you ship through a carrier, you will submit the claim directly to their claims department.
Generally, regardless of the process for submitting and filing a claim on insured packages, you will need information about the shipment including shipment details, claim reasoning, proof of value, and evidence of insurance.
Best practices when shipping for business with insurance
- Consider the size of your business and the volume you are shipping
- If you are a large business doing many shipments, or very large shipments to other businesses, you might consider investing in a logistics service provider like Inxeption that will help you ship smarter and mitigate risk with the added value of shipping insurance from trusted providers.
- Pack smart
- Always package appropriately whether that be by determining if parcel or freight (LTL or FTL) is the best way to ship, or if you need last mile or white glove service. Always know where your insurance is coming from and vet the provider.
- Make claims quickly
- Regardless of your provider or how you are insuring, always submit claims as quickly as possible. Carriers generally have a set number of days to respond to claims, but these could range from one week to 30 or 60 days or more.
How can I insure my shipments at Inxeption?
Inxeption Shipping Protection gives you seamless access to insurance coverage as part of the logistics transaction. You will have peace of mind knowing you have protected your shipments in the event of loss or damage. If you do have a claim, you have simple, online claims processing for faster payout.