Shipping insurance for packages
Shipping insurance works well for some and can be a barrier to keeping shipping costs as low as possible. GMX Worldwide Xpress offers traditional shipping insurance as well as specialized insurance when needed.
The Basics
Shipping insurance is often referred to as cargo insurance or package insurance. The insurance allows some risk management for both the buyer and the seller of the products being shipped. These risks include theft, damage in transit and loss.
The easiest claims involve the complete loss of the package. While there is a waiting period required to verify the loss of that package, scanning technology worldwide has made it much easier to track and trace shipments. Long ago it was a huge issue to get proof of delivery or non-delivery. Today tracing is a marvel of technology.
Insurance coverage typically starts from the moment the package is picked up by the carrier or dropped off at the carrier’s location. The insurance ends when the receiver gets the package.
Benefits of Insurance
From a marketing perspective, insurance provides an increased level of trust between the sender and the receiver. Shipping insurance for packages removes certain friction in the sales funnel and establishes a much higher level of trust.
It is 100% true that items sold on most shopping platforms like Etsy, eBay etc. are shipped to customers with or without insurance. Unfortunately, as every serious seller knows, if the buyer does not get the item, the buyer will have to refund or reship it to the client. The buyer has all the power and the seller has none. Insurance can save you headaches and your reputation.
Does Insurance really protect me when I ship?
This is a loaded question, moreover, shipping insurance carries a reasonably low cost, and has many upsides and very few downsides. Weigh your options before you commit. Package shipping insurance must be thought out carefully. Many carrier services include 50$ or 100$ insurance. It is to be noted that the insurance is based solely on the purchase value of the sender’s item, not the selling value on the invoice. In addition, there are many terms and conditions that need to be looked at. This includes the fact that some items may not even be covered fully in case of damage.
We have taken the opportunity to point out issues that could arise regarding insurance and risk on our site here. While you may have taken out insurance on your tea set that you want to ship to your sister if it arrives in a million pieces it is very hard to claim due to the fragility issues. If it is lost, the claim is easier to handle.
The strong positives
Insurance seriously enhances the receiver’s trust in business. It is also true that on large selling platforms, the buyer does not really care, since they expect reimbursement no matter what happens. The trust is projected directly on the owners of the selling platform, not the seller.
The biggest positive is for those show ship high value items. The loss of a $3,000 package is not easy to recover. Even if your miracle product has a high margin of profit, the higher the perceived value loss is a bitter pill to swallow and harder to finance.
All in all, we recommend that you get insurance for your high-value shipping packages.
If you ever have any questions, please do not hesitate to contact us and ask. you are welcome to contact us and ask.
