Is Shipping Insurance Worth Getting?

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Is it worth it to buy shipping insurance?

  • Shipping insurance can be useful, but whether it’s worth the extra cost depends on a few things. If you’re just sending out a few cheap items (less than $100), it might not make sense to shell out extra cash for insurance. But, if you’re regularly shipping expensive stuff, especially over $100, getting insurance is a smart move.

  • Whether or not shipping insurance is worth the cost depends on a few different variables. Here are some of the circumstances in which shipping insurance might be the smart choice for your brand:

    • You’re shipping a high volume of orders: The more packages you ship, the higher the likelihood that something will go wrong with at least one of them.

    • Your products are valuable: If you’re shipping items that would be costly to replace, like antiques or collectibles, insurance gives you peace of mind.

    • You want to prevent customer disputes: Insuring valuable shipments heads off problems: if an item gets lost or damaged during shipping, you can quickly reimburse the customer.

    • Shipping internationally: Crossing borders introduces more handoffs and longer transit times. Insurance protects against the increased risks.

    • Ultimately, you have to weigh the value of your goods against the cost of the insurance. Pay attention to each carrier’s specific insurance rates, maximum liability amounts and claim procedures. Read the fine print to understand exactly what scenarios your policy covers. As with any insurance product, shipping insurance works best when customized to your specific needs.

Should you get shipping protection?

  • Shipping protection helps mitigate impacts of delivery problems. It offsets financial loss if a package gets damaged, lost or stolen.

  • More containers get lost at sea yearly, though only 1% of total shipments. Catastrophic events cause such losses. Reports vary each year based on lost cargo documentation.

  • Reputable brands aim to protect packages. That builds customer trust. Route Protect adds shipping protection to sites. It saves money through safeguarding goods.

  • Exporting goods needs insurance for assets and revenue. Make sure items pack properly first, though. Poor packing prevents reimbursements.

  • Consider if a retailer’s shipping protection works best. That policy helps the company, not you. Submitting claims takes effort and meets denials. You still have to appease disappointed buyers.

  • Insurance brings peace of mind. No matter package problems, goods stay covered. It also prevents financial loss from replacing items.

  • You can insure international orders too. Goods track in real-time. Damages or losses lead to reimbursements. Coverage depends on item value.

  • Convenience exists in tracking systems. Retailers get dashboard alerts on delivery progress. That allows issue resolution monitoring.

  • Rather than carrier insurance, add third parties. They extend protection beyond free coverage levels. Providers like Route offer tailored policies.

  • Basics include reimbursing lost, stolen or damaged items. Most couriers insure domestic and international packages below $100 automatically. Higher values need extra protections.

  • Consider if nervous about delivery risks. Insurance offsets damages, losses and thefts. It makes ordering less stressful.

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