Is Shipping Insurance Necessary? Should I Buy It?

Check out this article to learn what shipping insurance is.
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Last update:

June 1, 2023

As online shopping becomes a habit, more people tend to purchase things online, so shipping is unavoidable throughout the process. Commonly, packages may get lost or damaged through transit. 49 million Americans have at least one time that their packages have been lost or stolen in the past 12 months. Shipping insurance, also called Ship Insurance, will be a good option if your package is worth a lot. 

What Is Shipping Insurance? 

Shipping insurance can protect your packages against loss or damage in transit. If the package does not reach the final destination safely, the shipper is able to get the declared value and shipping cost back through the insurance. 

What Are the Different Types of Ship Insurance? 

There are two different types of insurance: Carrier insurance and third-party insurance. Carrier insurance is acknowledged by carriers officially, but other companies insure third-party insurance. However, both types can offer you some coverage and are very reliable. 

What Does Carrier Insurance Cover? 

Carrier Insurance means the insurance provided by shipping carriers. However, some carriers do not prefer the name “shipping insurance;” they prefer to call it “shipping liability” or “declared value” instead. 

UPS shipping services will automatically cover a value of $100 per shipment. FedEx shipping services will also cover up to $100 liability except for FedEd Ground Economy. Before July 9th, 2023, only USPS’s Priority Mail will include a value of $100. The rest of USPS shipping services will not cover any liability. However, starting from July 9th, 2023, USPS combines USPS Retail Ground, First-Class Package, and Parcel Select Ground and renames it as USPS Ground Advantage; USPS Ground Advantage will cover $100 insurance since then. 

To be reimbursed when the package gets lost or damaged, the shipper must provide proper evidence to show that the carrier’s fault is leading to the loss or damage. 

If the declared value of the package exceeds $100, carriers will charge you a small portion of the fees. The price is below: 

 USPS Shipping Insurance

UPS Shipping Insurance/ Liability (p.121): 

FedEx Shipping Insurance/Liability

From these charts, the shipping insurance cost is not a lot, and it is affordable.

What Does Third-party Shipping Insurance Cover? 

Unlike carrier shipping insurance, third-party insurance will pay no matter what caused the package damage or loss. The payment will include the total amount of the shipment and the shipping costs. 

How Much Is the Third-Party Shipping Insurance?

There is various third-party shipping insurance in the market. Shipsurance is a popular choice among shippers. 

Shipsurance provides discounted shipping insurance and has successfully integrated into the ShipSaving system. The ShipSaving Shipsurance’s price is below: 

Is Shipping Insurance Worth It?

The insured shipping has its value. The worth of insurance for shipping depends on the value of your package. If the package is worth less than $100, there is no need to purchase insurance. If the package is worth more than $100, and you ship parcels frequently, the shipping insurance can play a vital role. 

Especially for e-commerce sellers, if items you sell are pricy, considering purchasing shipping insurance is a wise strategy. Therefore, the value of shipping insurance is determined by the frequency of shipments and the value of the package. 

How Can I Purchase Shipping Insurance?

Purchasing shipping insurance is simple. The first thing is to register a ShipSaving account

When you log into your ShipSaving account, please click “Buy a Label.”

After you fill out basic information about the shipper and the package, you may find “insurance” in the “Shipping Options” Section. Enter the amount of your package value. Then you will be all set.

Final Words 

Shipping insurance is cost-effective for people who want to ship expensive items. Shipping with insurance makes your ship with ease. Purchasing shipping insurance is an easy process if you have a ShipSaving account. Do not forget to register a ShipSaving account today

Written on:

June 1, 2023
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