Talk about doing business with no borders. Just because it is in a different country does not mean you cannot have it. However, do you ever come face to face with the fact that your package might not reach its destination because of some unforeseen circumstances?
Well, worry no more! Shipping insurance has made the transportation of parcels from one country to another even more convenient and safer.
If you are importing goods for business or personal consumption and you are reading this, Shipping insurance is the answer!
Table of Contents
- What does shipment Insurance mean?
- Why should you consider shipping insurance?
- Shipping Insurance cost
What does shipment Insurance mean?
Shipping insurance is a service that compensates account holders whose packages are stolen, lost, or damaged in transit.
In a world of uncertainties, there is no guarantee that your goods might reach their destination in one piece or arrive where they are supposed to be.
Most people have their houses, cars, and even health insured. Similarly, you need to ensure your parcel as well to protect yourself from loss in the event the package does not reach its destination safely or in good condition.
Think about it this way; if you have not insured your shipment, you will toss and turn in your bed wondering;
- What is the possibility of the courier losing my parcel?
- What if someone steals my parcel?
- What if the ship gets an issue along the way and does not reach its destination?
- What if the parcel breaks during the shipping?
- What if my parcel gets lost in transit?
We have all had things like this happen to us before or to people we know so we just can’t help it. Can we?
It is only natural that we worry about situations like those during the shipment of our parcels.
Why should you consider shipping insurance?
If the mere thought of your goods getting damaged while they are being shipped brings you anxiety, then consider getting the shipping of your goods insured to enjoy the following benefits;
Shipping insurance will give you peace of mind
We are all caught up in our day to day activities and having to worry about your parcel should not be on the list of your worries. That being said, having your parcels insured will give you the peace of mind you need.
Shipping Insurance shakes the burdens off
Take this for example; In the event that something happens to your parcel while in transit, it will not be upon you alone to cover all the costs. By insuring your package, you have saved yourself the headache that comes with recovering from the cost of a damaged or lost parcel. The insurance may cover the damage, or you will share the costs with the insurance company.
Summing it all up, shipping insurance allows you to send your parcel safe and sound abroad so why not avoid the risk and get started with acquiring shipping insurance for your package? After all, Better safe than sorry.
Shipping Insurance cost
It is the cost used to ship the items to the buyer hence the shipping insurance cost for all carriers entirely depends on the value of the item being shipped.
USPS(United States Postal Service) insurance
It gives you standard shipping insurance to protect your parcel against loss, damage or even missing content. Here, the insurance will only cover the actual value of the shipped materials.
USPS insurance rates
It is essential to know the insurance rates while purchasing shipping insurance. As earlier said, the larger the volume of the packages, the higher the insurance rate and the lesser the package, the lower the insurance rate. USPS insurance rates are as follows
|Value of Item||Cost of Insurance|
|Not exceeding $50||$1.65|
The insurance provider pays out the full value of a lost or damaged good minus the shipper proving that the carrier is liable.
Note that UPS insurance is not liable for loss resulting from prepaid letters, improper packaging, perishable commodities, data stored on any media, acts of God such as natural disasters, adverse weather conditions and finally any package without a scan.
UPS insurance rates
The UPS insurance rates start at $100. The packages that are worth $100 are therefore covered under this insurance. The rates for UPS insurance are as follows;
$100 charges $0.90 for every $100 of declared coverage.
For any international shipments with a declared value of more than $50,000, the UPS charges $0.09 multiplied by the declared value.
It is important to note that UPS has a $2.70 minimum insurance policy, so the value of the product to be shipped must be at least $300 to qualify for the agent’s shipping insurance.
The FedEx insurance offers a standard declared value coverage. Hence in incidences where a company is responsible for a parcel being lost, stolen or damaged then the shipper can file for a claim to recover $100 in value.
We should note that this type of insurance coverage does not protect against acts of God nor packages damaged or lost will it arrives at the customer’s doorstep.
FedEx insurance rates
FedEx insures goods valued from $100 to $50,000.
FedEx insurance rates are applied as follows
|Value of Item||Cost of Insurance|
|Not exceeding $100||$0|
|From $100.01 – $300.00||$2.10|
|From $100.01 – $300.00 (Express)||$3.00|
|Over $300 (for any additional $100 in value)||$1|
FedEx international Express costs $1 for every $100 0f declared value above $100; thus the insurance coverage of a package with a declared value of $250 would cost $2.
There you have it! With all the different insights on the rates form the various carriers, you will now be able to choose which one best suits you. While you are insuring your cars, houses and health, you can go head to protect your parcels too because all the same, they are precious to us. Do not risk your parcels, get them insured!