Insure Shipments

What is shipping insurance?

Shipping insurance, also sometimes referred to as "parcel insurance" or “declared value”, refers to the service of protecting against lost items, damaged items, or other last mile mishaps through a carrier. If a shipment doesn’t reach the buyer in the shape it should be in, the shipper (or merchant) will be reimbursed the declared value of products that were shipped via the insurance company or provider.

What is the difference between shipping insurance and cargo insurance?

To benefit from shipping insurance, the shipper must prove the negligence of the carrier when it comes to the damage of the product or loss of the product. Cargo insurance attaches to the cargo (product) while in transit, and is generally extended from warehouse to warehouse.

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. Not to mention, as a business, the costs of shipping mishaps can be significant both in terms of time and money.

Whether shipping insurance is worth it depends on the volume of your shipments and the value of the products being shipped.

How much does shipping insurance cost?

Each carrier 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 through the post office or other shipper.

If you use an integrated logistics software, like Inxeption, value protection for your packages can be built in to your shipment for a small percentage as opposed to a flat fee.

What shipping insurance add-on options are there?

Shipping insurance programs generally offer specific service options that you can add on as needed. These include signature confirmation, collect on delivery, and return receipt.

Where should I buy shipping insurance?

Using a system or software for your business that helps you to manage logistics and supply chain operations, like Inxeption, might mitigate confusion around what carriers to use and for what. It will help you select the best carrier for your specific needs. If you use a software that automatically helps you ship with an integrated carrier or multitude of carriers, shipping insurance might be an add on service that you can purchase directly.

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 software provider or a third party insurance provider, you might submit the claim 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 on hand 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 software 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 vett 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.

• Know what might be excluded

  Though this might vary between providers, keep an eye out for fragile items. With some carriers, when the shipment is signed for, it is accepted as being in satisfactory condition.

How does shipping insurance work at Inxeption?

At Inxeption, shipping insurance or value protection can be easily integrated into shipping capabilities in the platform for a small percentage of the order value. It can protect against economic losses and provide recourse similar to liability insurance. When you have a claim, you submit it directly to us for faster processing than going directly to the provider, so we can help to handle any hiccups.