When your business depends on shipping, it is imperative to make sure you have adequate insurance coverage. Even with the proper packing and attention, packages can be lost or damaged while in transit.
You have options for shipping insurance. Make sure your business shipments are properly covered so you can ensure complete customer satisfaction. You should take shipping insurance cost into consideration when deciding the best option.
Before buying insurance, check to see the exact cost and what would specifically be covered. Here is a breakdown of coverage offered by different carriers and how to determine the best protection for your specific needs.
How Much Is USPS Shipping Insurance?
How much is USPS insurance? Their shipping insurance is available in varying amounts. When you send a package through the post office, the package is usually automatically covered for up to $50 in value.
Countless packages are sent by the postal service, so you will want to make sure you have the proper insurance coverage.
When shipping domestically, the insurance rates are as follows:
- $0.77 for up to $100 of coverage
- $1.54 for $100.01 to $200 of coverage
- $2.31 for $200.01 to $300 of coverage
- $3.08 for $300.01 to $400 of coverage
- $3.85 for $400.01 to $500 of coverage
- $0.77 per $100 of coverage between $500.01 to $2,000
International USPS shipping Insurance Charges
International shipments require special shipping insurance coverage, which is available at different rates that depend on the country to which the merchandise is being shipped.
These charges are as follows:
- $1.28 for up to $100 of coverage
- $2.56 for $100.01 to $200 of coverage
- $3.84 for $200.01 to $300 of coverage
- $5.12 for $300.01 to $400 of coverage
- $6.40 for $400.01 to $500 of coverage
- $1.28 per $100 for amounts ranging from $500.01 to $2,000
How Much Is FedEx Insurance?
If you are using FedEx, you will want to know how much to insure a FedEx package. When you are using FedEx for your shipping needs, you must tell FedEx the value of your shipped items. However, you aren’t required to provide proof of the actual value of the shipped goods when you buy the shipping insurance.
Notably, if there is loss or damage or if you want to file a claim because your package is lost or stolen, you will need to provide proof of the package value. This can be done by using receipts, photos of the merchandise, or anything else that can help prove the value of your package.
FedEx SameDay and SameDayCity services will insure up to a maximum declared value of $2,000 with an additional cost of $3 for shipments up to $300. One dollar per $100 of coverage is charged for any declared values in excess of $300.
If you choose U.S. Express package service, U.S. Ground service, or International Ground services, the insurance charge is $3 for shipments that have a declared value of up to $300.
For values in excess of $300, it is $1 per $100 of declared value. For extra protection, you can get Direct Signature Confirmation at no extra charge if the value is stated to exceed $500.
FedEx Domestic and International charges are as follows:
- $0.59 for up to $100 insurance
- $1.18 for $100.01 to $200 of coverage
- $1.77 for $200.01 to $300 of coverage
- $2.36 for $300.01 to $400 of coverage
- $2.95 for $400.01 TO $500 of coverage
- $0.59 per $100 of coverage between $500.01 to $2,000
Comparing Shipping Services' Insurance Coverage
Regardless of whether you choose Fedex or USPS, your coverage through the delivery service is limited. You should also familiarize yourself with how to file a claim and what is required to prove the value of the merchandise.
Of course, several things come into play with determining the claims process, such as the type of insurance, where you chose to purchase insurance, and whether you are sending domestic shipments or international shipments. Also, the kind of shipping you choose plays a role in the claims process as well.
Remember, insurance through a carrier doesn’t guarantee a fast settlement to resolve your issues when you file a claim because of your package being lost, damaged, or stolen during the shipping process.
Lacking the proper insurance coverage could cost you and your business significantly, especially if your business depends on frequent shipping to customers either domestically or abroad.
You want to ensure you provide the ultimate customer service experience, so if a package is misdirected, lost, stolen, or damaged, you will want to replace the merchandise as quickly as possible. To limit your loss, you will need to ensure you have the right insurance coverage to protect your interests and to reimburse you for your losses.
Buying Your Own Shipping Insurance
There are options outside the coverage offered by the different shipping services and carriers. A private insurer will ensure your coverage is catered to meet your specific needs.
Cabrella is a solution for all your shipping insurance needs, which will ensure you will get the best value at the least cost when it comes to your shipping protection. When you compare the cost of Cabrella to the USPS coverage, you can get $600 of protection from Cabrella for $1.50 compared to $9.15 for the same coverage from the USPS.
To learn more about insurance protection from Cabrella, reach out to us today.