Did you know that 75% of shippers have faced the nightmare of lost or damaged packages in the last two years? But what’s even more frightening is that replacing those lost or damaged orders can cost up to 17 times more than the original shipment .
What is parcel insurance?
Parcel insurance is your package’s “superhero cape.” It protects you against shipping incidents and eliminates the financial loss caused phone number list by lost, damaged, or stolen packages. The amount you recover will depend on the terms of the coverage you choose.
Delivery insurance offered by third-party providers generally offers more comprehensive coverage. We’ll discuss both of these options later in this article.
Does your business need parcel insurance?
In short… yes! It is absolutely wise to cover the packages you ship.
But the key question is: do you need most people send the same additional parcel insurance, or is the coverage offered by a carrier sufficient when insurance is included?
Parcel insurance is essential if you are doing any of the following:
However, if you are a small business and the average value of your domestic shipments is less than €30-50, it may not be necessary to purchase additional insurance.
Many domestic and international carriers cover some value with some or all of their shipping services.
If you decide not to add additional insurance, check the coverage and terms of the different carriers and see which one best meets your needs.
But wait, if carriers include insurance in their shipping services, what’s the point of adding extra insurance?
Carrier coverage or third-party parcel insurance: the main advantages
Unfortunately, the insurance offered by fax lead carriers can be very limited, including long lists of items not covered, low compensation limits, slow reimbursement times, and difficult conditions for receiving compensation.
So let’s look at the main advantages of investing in parcel insurance compared to the coverage offered by carriers:
- Financial protection against loss, damage, or theft : The value of the coverage that carriers typically include is much lower than third-party insurance, while the cost of things like return or reshipping fees are .The insurance premium is an easier expense to manage and predict.