As a business owner, nothing is worse than dealing with a lost, damaged, or stolen package when goods are in transit. Managing the uncertainties surrounding the shipment of goods to your customer calls for shipping insurance to protect your business from the costs incurred from spoilage, damage, theft, or accidents. Shipping insurance is one way to protect your business against the cost of damaged or undelivered packages. It can help you claim reimbursement for lost, damaged, or stolen packages during shipment. Let’s look at what shipping insurance is and why it is essential for your shipment.
WHAT IS SHIPPING INSURANCE?
Shipping insurance is a protective policy of securing products going out for shipment. It is a safety measure to help protect your business from various unfortunate circumstances like loss, theft, damage, or other incidents that may happen to your parcel is in transit. Shipping insurance assumes s financial liability for goods until they arrive at the designated location. It provides meaningful coverage for businesses in circumstances where the merchant has little to no control over what happens to the goods in transit.
You can get shipping insurance through mail carriers, couriers, and third-party vendors. When negotiating for shipping insurance, businesses must declare the value of the goods shipped since it is the amount to be reimbursed if something happens. Some carriers offer a fixed amount of shipping insurance which they include in the shipping service charge up to a particular value. If your item is more valuable than the amount, you may have to purchase supplementary shipping insurance to cover the entire cost of the package.
HOW DOES SHIPPING INSURANCE WORK?
Like other insurance, shipping insurance helps business owners resolve issues that occur before your shipment gets to its location. Claims for reimbursement of financial losses depend on the damage or loss of shipment. Businesses can file claims online, via fax, or email within a designated time frame. Filing shipping insurance claims require you to:
- Demonstrate Proof of Loss or Damage
- Show Proof of the Item Value
- Observe the Filing Timeframe
If a claim is approved, you’ll receive reimbursement shortly afterward. The waiting period for claim reimbursement varies, and third-party insurers can payout in less than a few working days.
WHY IS SHIPPING INSURANCE SO IMPORTANT?
The importance of shipping insurance cannot be over-emphasized, especially now that package theft is increasing drastically. It allows businesses to get reimbursed and recover from losses in the event of lost, stolen, or damaged packages in transit. Shipping insurance offers an extra layer of protection for your package if something happens. Consumers’ survey indicated that damaged and broken items as the primary reason for returning items purchased online.
Shipping insurance is valuable, especially for companies that constantly ship high-value items. It provides full coverage and compensation in case of any loss or damage. Ensure the item meets the qualifications for reimbursement before deciding on shipping insurance. It is an added assurance and a great relief that you don’t need to worry about damaged or undelivered shipments.
FINAL THOUGHT
It is vital to protect your business with shipping insurance for your shipments. Shipping insurance costs vary, and every carrier has its rate, terms, and restrictions. The decision to get shipping insurance is necessary for businesses with high-value sales. Vancouver Cross-Dock has you covered in its fulfillment process.