How to Protect Your Profits With Insured Shipping

In the fast-paced world of eCommerce, shipping plays a critical role in ensuring customer satisfaction and maintaining a positive brand reputation. However, the shipping process often involves unforeseen risks, such as damaged, stolen, or lost packages.

Did you know? A staggering 14% of Americans were victims of package theft in 2022, with losses over $29 billion, according to recent research by Capital One. This translates to an alarming one in 100 packages being stolen, with an average value exceeding $110!

Investing in shipping insurance is crucial to safeguard your business from these potential losses. This is especially critical for high-volume shippers, as lost or stolen packages can quickly result in falling profits.

What is Shipping Insurance?

How does shipping insurance work?

Shipping insurance provides a safety net for online businesses by covering losses incurred due to damaged, lost, or stolen packages. It acts as a financial safeguard, ensuring that you can reimburse your customers for any damages or losses and maintain your reputation as a reliable seller.

Navigating Shipping Insurance Options

When selecting shipping insurance options, it's crucial to consider the specific needs of your business and the actual value of your shipments. There are two primary sources for shipping insurance:

1. Shipping Carriers:

Most major shipping carriers offer varying levels of insurance coverage directly at the time of shipment, such as FedEx shipping insurance and USPS shipping insurance. This option is convenient and integrated with the shipping service.

A key limitation with this service is that many couriers and the postal service will only cover shipments up to $100 and many won’t even offer additional coverage at all. Plus, the time that it takes an insurance claim with a courier to finalize could be anywhere between a week, a month, or even a year.

2. Third-party Shipping Insurance Companies:

Specialized third-party shipping insurance companies provide broader coverage options and may offer more flexibility in adjusting coverage levels based on your specific needs. These companies can tailor coverage to your specific shipment values, routes, and risk profiles. However, a third-party insurance company may be slightly more expensive than carrier-provided insurance.

Factors to Consider When Choosing Shipping Insurance:

• Shipment Value: Ensure the shipping insurance cover aligns with the value of the items you ship most often
• Risk Factors: Assess the potential risks associated with your shipping routes and shipment types to determine the appropriate coverage level.
• Carrier Integration: Choose insurance cover that integrates seamlessly with your eCommerce platform to streamline the process

Navigating Insurance Options with Easyship:

Easyship Insurance is powered by InsureShip, the leading shipping insurance provider for both eCommerce retailers and large-scale businesses. Backed by The Navigators Group and The Hartford, with an A.M. Best Rating of A+ “Excellent,” Easyship Insurance offers comprehensive protection for your valuable shipments.

With Easyship, customizable coverage is available based on the actual order value, allowing you to purchase insurance directly within the Easyship platform. This integration streamlines the process, saving you time and effort while ensuring comprehensive insurance protection for your shipments.

Benefits of Using Easyship for Shipping Insurance:

• Centralized Platform: Purchase and manage insurance for all your shipments through Easyship's centralized platform, eliminating the need to switch between multiple systems
• Easy Claim Filing: Easily file a claim for a damaged, lost, or stolen insured package through Easyship's platform. Guided by step-by-step instructions and supportive documentation
• Streamlined Claims Resolution: Easyship simplifies the claim resolution process, ensuring a smooth and efficient resolution to minimize disruptions to your business operations.  Most claims are approved and resolved within one week.

Easyship also now offers you more flexible insurance settings, allowing you to choose between three different options. This means you can now get the perfect insurance for your shipments without ever overpaying:

1. Insure for just the selling price of the item
2. Insure for a set percentage of the selling price
3. Set your own price as the insurance value

By partnering with Easyship for shipping insurance, you can confidently manage your insurance needs, safeguard your valuable shipments, and maintain the peace of mind that comes with knowing your business is protected.

10 Benefits of Shipping Insurance

Shipping insurance is a cornerstone of prudent eCommerce shipping practices, offering a range of benefits that protect your business, enhance customer satisfaction, and maintain a positive brand reputation.

1. Financial Protection from Losses:

Shipping insurance acts as a financial safety net, protecting your business from the financial repercussions of lost, stolen, or damaged packages. This is particularly crucial for high-value items or high-volume shipments, where a single loss could significantly impact the profits of online retailers.

2. Enhanced Customer Satisfaction and Retention:

Providing shipping insurance demonstrates your commitment to customer satisfaction and can demonstrate your care for the well-being of your customers. By offering peace of mind, you can foster stronger customer relationships, encourage repeat business, and reduce the risk of negative feedback or chargebacks.

3. Protecting Your Positive Brand Image:

A strong brand reputation is essential for any eCommerce business. Shipping insurance helps you avoid negative feedback and maintain a positive brand image when orders get lost or damaged.

Shipping insurance allows you to issue refunds or reship orders, ensuring that customers associate your brand with quality, reliability, and effective customer service. This can help boost repeat sales without eating into your bottom line.

4. Reduced Admin Burden:

Navigating the claims process for lost or damaged packages can be an arduous task, involving lengthy investigations, paperwork, and potential delays in receiving reimbursement. Third-party shipping insurance eliminates these complexities, providing a streamlined claims process that ensures prompt and efficient resolution.Traditional courier insurance often involves dealing directly with the shipping carriers, which can be time-consuming and frustrating. Third-party insurance providers handle the entire claims process on your behalf, alleviating the administrative burden and minimizing the hassle of dealing with couriers.

5. Customizable Coverage Options:

Shipping insurance plans offer a range of coverage options, allowing you to tailor protection to the specific needs of your business and the value of your shipments. This flexibility ensures that you have the right level of insurance in place to meet your unique requirements.

6. Convenient Access to Shipping Insurance:

Shipping platforms like Easyship make it effortless to access comprehensive shipping insurance without disrupting your workflow. By seamlessly integrating insurance options into our platform, Easyship eliminates the need for multiple systems and ensures that you can seamlessly purchase and manage insurance coverage for your shipments.

This integration streamlines the process and empowers you to focus on what matters most – growing your business.

7. Reduce the Risk Of International Shipping:

International shipping often involves crossing borders and navigating various customs regulations, which increases the risk of packages being lost or stolen. Shipping insurance can compensate you for these losses, ensuring that you don't bear the financial burden.Plus, shipments may experience varying weather conditions, rough handling, or delays, leading to damage to the products. Shipping insurance can reimburse you for the cost of replacements, safeguarding your investment in the goods.

8. Protection for Businesses of All Sizes:

Shipping insurance can be crucial for businesses of all sizes. If you're an ambitious eCommerce entrepreneur scaling a successful store, with shipping platforms you can get the same quality of insurance as major players with just a few easy clicks!

9. Peace of Mind:

Shipping insurance is a valuable asset for businesses of all sizes, providing comprehensive coverage for any unforeseen circumstances that may arise during transit. By safeguarding your shipments against loss, damage, or theft, shipping insurance helps you maintain business continuity and protect your valuable inventory.

10. Simplified Claims Management:

In the event of a loss, online platforms like Easyship can simplify the claims process, guiding you through the documentation and filing requirements, and ensuring a smooth and efficient resolution. This eliminates the need for lengthy administrative processes and expedites reimbursement.

Related Post: What's the Cheapest Way to Ship Packages in 2023?

How Much Does Shipping Insurance Cost?

Shipping insurance is a valuable investment that safeguards your business and provides peace of mind, but it's important to understand the associated costs to make informed decisions. Shipping insurance cost varies depending on various factors, including the shipping carrier, the value of the shipment, and the level of coverage selected.

Shipping Carriers:

Major carriers like UPS, FedEx, and USPS offer varying levels of insurance coverage directly at the time of shipment. The cost of insurance typically ranges from 0.50% to 5% of the shipment value. This means that for a shipment valued at $1,000 and shipping insurance worth the equivalent, the shipping insurance cost would range from $5 to $50.

Third-party Insurance Companies:

Specialized third-party insurance companies offer shipping insurance with broader coverage options and may offer more flexibility in adjusting coverage levels based on your specific needs. These companies can tailor coverage to your shipment values, routes, and risk profiles. However, third-party insurance may be more expensive than carrier-provided insurance.

Deductibles:

In most cases, insurance policies have deductibles, the portion of the loss the insured must pay before the insurance company reimburses them. Understanding these deductibles is crucial to determining the overall cost of insurance. For instance, if you buy insurance for a shipment valued at $1,000 with a deductible of $50, you will only be reimbursed for the loss after paying the first $50.

Not for you? Insurance purchased on the Easyship platform doesn’t have a deductible! Get fully reimbursed, with many cases closed within a week!

Factors Affecting Cost of Shipping Insurance:

The cost of shipping insurance is influenced by several factors:

• Shipment Value: The shipment value is the primary determinant of insurance costs. The higher the value of the shipment, the higher the insurance premiums
• Shipping Destination: Shipments traveling to higher-risk destinations, such as war zones or countries with unstable political or economic conditions, may incur higher insurance policy costs, or may not be covered at all!
• Shipment Type: Additional cost for fragile or high-risk items, such as electronics or precious metals, may be higher due to the increased potential for damage or loss
• Shipping Carrier: Different shipping carriers offer varying insurance rates. Comparing rates from multiple carriers can help you find the most competitive option

Navigating Insurance Costs:

To effectively manage shipping insurance costs, consider the following strategies:

• Accurately declare shipment values: Ensure you declare the true value of your shipments to avoid underinsurance
• Select appropriate coverage levels: Tailor your coverage levels to the specific value and risk profile of your shipments
• Consider third-party insurance providers: Evaluate the options offered by third-party insurance companies for broader coverage and flexibility
• Utilize shipping platforms with integrated insurance: Leverage shipping platforms like Easyship that seamlessly integrate insurance providers, providing convenience and cost-effective options

By carefully considering these factors and employing effective strategies, you can optimize your shipping insurance costs while maintaining adequate protection for your valuable shipments.

Easyship's Cost-Effective Solution:

Easyship simplifies the process of managing shipping insurance, simply select the most suitable plan, and add shipping insurance directly within the platform. This centralized approach helps you optimize insurance costs while ensuring your valuable shipments are adequately protected.

Important: This blog post is for informational purposes only and does not constitute policy coverage terms. Please review Easyship's Insurance Terms and Conditions for the most up-to-date information on Easyship's shipping insurance offerings and your rights and obligations as a customer.

How to Purchase Shipping Insurance

Protecting your shipments from potential losses is crucial for the success of your eCommerce business. Shipping insurance provides a safety net, ensuring that your business is financially compensated in the event of lost, stolen, or damaged packages. Here's a step-by-step guide to purchasing insurance for your shipments:

1. Declare Package Value:

Accurately declare the value of the items being shipped to determine the applicable insurance coverage. The maximum declared value will be used if you have to file a claim.

2. Select Coverage Level:

Choose the insurance plan that aligns with the value of your shipments and the risks you anticipate. Consider factors such as the shipment type, shipping route, and the type of items being shipped.

3. Purchase Insurance:

You can add shipping insurance from major shipping carriers or specialized third-party insurance companies. Carrier-provided insurance is convenient and integrated with the shipping process, but it may have lower coverage limits. Third-party insurance offers broader coverage options but may have slightly more expensive shipping insurance rates than USPS insurance, for example.

Easyship simplifies the process of purchasing and managing insurance for your shipments. Within the Easyship platform, you can compare prices from major carriers, select the most suitable plan, and buy insurance directly without switching between multiple systems. Easyship also guides you through the claim filing process, ensuring a smooth and efficient resolution.

4. Retain Documentation:

Maintain all shipping and insurance documentation for future reference in case of an insurance claim. This includes packing slips, shipping labels, invoices, and any supporting documents related to the shipment.

5. File a Claim:

In the event of a loss, file a claim through an online claim form promptly with the insurance provider. When you claim online, provide detailed information about the shipment, including the tracking number, date of shipment, and the nature of the loss.

Connect Your Store With Easyship and Simplify Shipping Today

Insure your valuable shipments and protect your business from financial losses with Easyship's comprehensive insurance solutions. Simply connect your store and purchase insurance directly within the platform.

Protect all of your orders up to a maximum declared value of $10K, and streamline the claims process with Easyship's seamless insurance management. Check out our shipping insurance FAQs for more details!

Easyship is a top shipping and logistics company working with a network of over 250 couriers worldwide. This has put us in a position to negotiate some of the best shipping discounts with leading couriers, and we can help you reduce your shipping expenses by up to 91%.

In addition to our high-quality insurance, Easyship offers a range of easy-to-use shipping tools to help streamline your shipping experience and delight your buyers. Popular features include:

• Courier Comparison Tool: With our courier comparison tool, you can compare the different shipping services offered by each courier, allowing you to choose your cheapest way to ship based on other factors, not just the cost
• Tracking: Easyship helps you maintain package visibility with your buyers throughout the delivery process, from custom-branded tracking emails to automatic message alerts
• Shipping Rate Calculator: You can use our shipping rate calculator to compare shipping rates from different carriers and find the cheapest way to ship your packages