As soon as your customer notifies you of a package that never arrived or of a box that was damaged in transit, make sure you have a process for collecting documentation and evidence of your loss. Your customer service team should know exactly what they are required to collect from the customer so you can process the claim.

Make sure you have paperwork and documentation for any claim you file. For example, in order to file a claim with USPS, you will need a claim form, evidence of insurance, evidence of value, and proof of damage or loss of contents.

As an example, here is a screenshot from part of the online claim form:. Looking for specific Shippo instructions for insuring your packages? Please check out our Help Center to learn more.

Related Shipping Terms. Sign Up Now! Looking For a Multi-carrier Shipping Platform? Here at EasyPost Shipping Insurance, we want to provide you peace of mind for any loss, damage, or theft, with integrity and sympathy towards every claim.

Start insuring your packages today at 0. Our affordable pricing starts at 0. From anywhere to anywhere.

On average, it takes 10 minutes to complete the claim form. No double talk. For questions or support, inquire through email and our team will respond within a day average 4 hours.

Did you know on average 1 in 10 packages are damaged or lost in transit? Protect your outbound product and customer relationships, as well as your profit margins, with EasyPost Shipping Insurance. Our insurance policy covers:. For our shipping API users, you can purchase insurance in the Buy call.

For standalone insurance users, we have our Insure endpoint that can integrate with your product. If your insured package is damaged, lost, or stolen, submit a claim for reimbursement.

Many insurers only offer discounts to high-volume, enterprise-level customers, but EasyPost offers discounts to both small businesses and enterprise-level companies alike. Whether you're interested in USPS insurance costs or FedEx shipping costs, EasyPost provides you with the best third-party shipping insurance.

When it comes to covering your shipments, you have several different parcel insurance options. You can go through a third-party insurance agency like EasyPost, you can go through a carrier, or you can "self insure" by paying for losses out of pocket.

Insurance with EasyPost is by far the easiest option. When you insure with EasyPost, any claims you file stay between us.

This is possible because EasyPost doesn't use a third-party insurance company to insure your packages. We handle the claim on your behalf and pay you for your loss within 10 days of submitting your claim. This is much faster than third-party insurers and carriers, which can take three to 12 weeks to file a claim and process payments.

The Cheapest Shipping Insurance. A major way to pay less for insurance is to use a third-party insurance provider, such as Shipsurance. When ParcelGuard coverage is more affordable than traditional shipping insurance and is simple to use. Up to $10, in Coverage. bigumbrella.site insures packages up Each domestic UPS and FedEx parcel is covered automatically up to a value of $ against loss or damage. The U.S. Postal Service only provides an automatic

Video

Budget-friendly shipping insurance - When it comes to frictionless and affordable shipping insurance for merchants, the choice is clear. Route package protection offers the best all-around The Cheapest Shipping Insurance. A major way to pay less for insurance is to use a third-party insurance provider, such as Shipsurance. When ParcelGuard coverage is more affordable than traditional shipping insurance and is simple to use. Up to $10, in Coverage. bigumbrella.site insures packages up Each domestic UPS and FedEx parcel is covered automatically up to a value of $ against loss or damage. The U.S. Postal Service only provides an automatic

In this post, we look in depth at shipping insurance to understand how reimbursement can keep your business from losing money on a lost or damaged package and when paying out of pocket is more economical than buying insurance coverage.

Shipping insurance is coverage offered by major carriers that protects against possible loss or damage to a specific shipment. This insurance covers damaged, stolen, or lost packages. Carriers base shipping insurance costs on the declared value of the package, with some minimum costs and coverage amounts.

Carriers also set coverage and payout caps, as well as requirements that you be able to demonstrate damage occurred while in transit. Insurance for shipping almost always comes from the carriers themselves, though there are third-party options as well.

High-volume shippers, like Red Stag Fulfillment, may be able to negotiate favorable shipping insurance rates. When you work with an order fulfillment company like RSF , you expand your options to make insurance work for your business, not against it. How much does shipping insurance cost?

UPS and FedEx have similar shipping insurance pricing structures. The updates have brought the two in line for most small shipments and individual packages. However, there are more pricing differences for freight and at high-volume shippers mainly due to a combination of calculations and available discounts.

USPS updated some of its pricing on January 22, , and according to that new rate sheet , here are your likely insurance costs. Starting January 2, , the rates below apply to FedEx shipping insurance for U. express and ground and international ground packages. In that case, compare prices with third-party shipping insurance companies.

UPS shipping insurance rates for match FedEx. You can get some coverage for larger shipment values — both parcel and pallet — through UPS but charges change. There are also businesses that offer third party shipping insurance.

Some of the popular options to use as supplements or alternatives to the major carriers include:. However, there are a few general guidelines to help you determine whether to purchase it.

First, the higher the item value inside, the more likely insurance is worthwhile. For high-value items , include markup to cover shipping insurance in your pricing.

You can also leave it up to your customers by offering the option to add insurance at checkout for an extra fee. The sweet spot where this protection is a good value is when it costs you less to buy insurance on each product and make claims when things are lost or damaged than it costs you simply to replace the goods.

File a claim as soon as a package is reported missing or damaged by the customer. Give the carrier or your third-party insurance provider as much documentation as possible about the package, including shipping information and proof that the package left the warehouse in good condition.

Many 3PLs take photos of every order before a carrier picks them up at their location, so ask your fulfillment partner for help in filing claims. Whether you're interested in USPS insurance costs or FedEx shipping costs, EasyPost provides you with the best third-party shipping insurance.

When it comes to covering your shipments, you have several different parcel insurance options. You can go through a third-party insurance agency like EasyPost, you can go through a carrier, or you can "self insure" by paying for losses out of pocket.

Insurance with EasyPost is by far the easiest option. When you insure with EasyPost, any claims you file stay between us. This is possible because EasyPost doesn't use a third-party insurance company to insure your packages.

We handle the claim on your behalf and pay you for your loss within 10 days of submitting your claim. This is much faster than third-party insurers and carriers, which can take three to 12 weeks to file a claim and process payments.

Now, it's time to insure your package. USPS Insurance Costs :. FedEx Insurance Costs :. UPS Insurance Costs :. Filing a shipping insurance claim will be different depending on which shipping service you use.

For USPS shipments , either the merchant or the end customer can file an insurance claim as long as they have the original mailing receipt. In the case of shipping damage or missing contents, USPS gives you 60 days after the mailing date to file.

For lost packages, the filing deadline will vary depending on the USPS service e. Priority Mail®, Priority Mail Express®, Collect on Delivery, etc. used to ship the order. To file a claim with FedEx , start by logging into your online FedEx account.

This will auto-populate information from your existing account into your claim to make the process easier. Click here for a full list of suggested documentation. FedEx will let you know if your claim requires inspection, so be sure to keep the damaged goods and their packaging until your claim is fully resolved.

UPS will notify you once your claim is submitted, and let you track claim status through your claims dashboard. 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.

The more packages you ship, the higher the likelihood that something will go wrong with at least one of them.

So for high-volume shippers like ecommerce businesses, insuring all your packages can help protect you from the inevitable, occasional misshipment or damaged order. However, you should always keep your margins in mind. But ultimately, how much monetary value it makes sense to insure is something you must decide for yourself, and will depend on your budget, profits margins, and overall business strategy.

Below are some examples of low-value items that might not warrant insurance, and some high-value ones that do:. Ecommerce merchants already experience so much uncertainty — so if you are looking for one less thing to worry about, shipping insurance is a great precaution.

Extra peace of mind is more than enough reason to add shipping insurance, as the small upfront investment is worth the potential upside if something goes wrong. While the occasional lost or damaged shipment may be unavoidable, choosing the right supply chain partners can go a long way in minimizing lost, damaged, or stolen shipments in the first place.

As a global fulfillment platform, ShipBob partners with thousands of ecommerce brands to simplify and optimize their shipping. When you partner with ShipBob for your fulfillment , we use these best practices to help your brand avoid common shipping mistakes and get the right packages to the right customers at the right time, in the right condition.

Using box-selection algorithm technology, our team of experts will automatically select the optimal size box or poly mailer for each order so that the contents fit snugly, minimizing jostling and breaking.