[Infographic] Shipping Insurance Comparison Guide

Posted by Benjamin Meskin on Oct 23, 2019 11:30:00 AM
Benjamin Meskin

 

When you drop a package in the mail, as a business owner or as an individual, you are relying on the carrier’s ability to deliver your item both safely and in a timely manner. However, sometimes your package’s journey may not run as smoothly as you had hoped.

Shipping insurance is a protection, which is offered through the carrier service, as well as third-party insurers, that may reimburse the sender’s monetary losses if their package happens to be misplaced, damaged, or stolen while in transit. As a business owner, the loss or damage of the product can be a challenge, to say the least, and the costs, depending on the size and regularity of damage, can be devastating. In an effort to maintain security over their business’ shipping ventures, customers turn to shipping insurance as a means to rectify their problem. 

Making a choice to purchase shipping insurance is a smart one. However, there are several other aspects that need to be examined before picking the right coverage for your personal shipping needs.

Our infographic will help you determine which shipping insurance is right for your needs!

 

 

 

Shipping Insurance FAQs

 

What Are Some Benefits of a Third-Party Insurer?

Almost any shipping carrier that you choose to send your packages with will likely have shipping insurance to offer you, which is excellent, but it might not be enough. 

Benefits of shipping insurance through third party insurance companies include:

  • Coverage for packages that are sent through nearly all carriers, including international destinations, at a lower rate. 
  • A faster and easier claims process, which means that you can reimburse your losses quicker
  • Higher coverage limits for your products

Private insurers like Cabrella also have the flexibility to build shipping insurance around your business’ specific needs so you’re only paying for what you actually need. 

 

How Much Does Shipping Insurance Cost?

As a business owner who needs to ship their products regularly, you likely take all the care and consideration within your power to make sure your packages are properly wrapped, sealed, and protected. 

However, once your item leaves with the carrier, a number of things may happen that are out of your control. A carrier employee may throw, drop, or misplace your package. The plane your package is on may hit some turbulence, tumbling your package onto the floor. Or, someone else might not have adequately wrapped their own packaging and their clumsy job cracks or leaks onto your parcel that just happens to be sitting next to it. This is why sufficient shipping insurance is a must-have, so let’s look at how much shipping insurance costs.

The cost of shipping insurance varies from carrier to carrier and from third party to third party. The most common carriers, such as United States Postal Service (USPS) and FedEx, offer domestic shipping insurance rates of $0.77 per $100 of coverage, and $0.59 per $100 of coverage, respectively. Those prices go up to $2,000 in coverage per package, which may sound affordable, but when considering other limiting factors, it may not be your business’ best option. 

When you purchase shipping insurance through a basic carrier service, and something goes wrong, filing a claim, waiting for a resolution, and being compensated can be costly and take a lot of time. Before a carrier’s insurance claim can be paid out, they must find out where in the parcel’s journey the damage occurred, and who was responsible for it. This can be a lengthy process. 

You’re also running the risk that once the details of the damage are known, the carrier may not cover it at all if it falls under one of their insurance restrictions. If this happens with your shipment, your business is left without monetary reimbursement and you’ve now lost out on time and money. 

Third-party insurers have more options readily available than standard carriers do. Cabrella is an all-over solution for all of your shipping insurance needs and can offer the best value of protection at a competitive price point. When comparing Cabrella to USPS, for instance, $600 worth of shipping protection can be purchased for $1.50. USPS offers the same $600 of monetary reimbursement (with more restrictions) for $9.15. 

 

Why Choose Cabrella For My Shipping Insurance Needs?

Cabrella offers affordable shipping insurance, as well as supplemental shipping insurance, to 182 different countries worldwide. This means that you can use whatever preferred shipping carrier you choose. Cabrella customers have access to real-time tracking for all of their packages via their API Integration technology. Their TMS system dashboard also makes filing a paperless claim simple. 

Perhaps what really sets Cabrella apart from the other competing insurance providers is the comforting details that come with your shipping insurance purchase. Most third-party insurers charge their customers a minimum monthly premium charge, on top of their shipping insurance costs. Cabrella doesn’t charge any monthly premium, nor do they round up to the next $100 when configuring your shipping insurance prices, something that both carrier insurers and differing third party companies are guilty of. 

With keeping their customers in mind, Cabrella also offers in-house subrogation in order to achieve the lowest possible rates for clients. Cabrella also offers profit sharing for large account holders. While many third-party insurance holders require their clients’ shipping recipients to sign an intrusive fraud statement upon delivery, Cabrella has never made such requirements, and also offers coverage to their clients over delivery disputes without a signature. Cabrella’s advanced loss ratio, loss statistics, and risk management reporting can give their clients a strong sense of security while shipping. 

Shipping insurance is something that every business seller will need at some point, and a strong consideration to make when shopping for insurance is that Cabrella can customize its insurance plan to fit your unique business needs. They offer more comprehensive shipping insurance coverage at a far more affordable price than their leading competitors. 

How Do I Learn More?

To learn more about supplemental shipping insurance, contact the experts at Cabrella at (844)-422-2735 or fill out an insurance application. Our licensed professionals will be more than happy to answer any questions that you may have. 

 

Cabrella Get a Quote

Tags: infographic, Shipping Insurance

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