One question we hear quite often is, “Should I purchase shipping insurance?” The short answer is YES. It always makes sense to protect your packages with insurance, especially if you’re an eCommerce business owner. However, did you know that your package might automatically have insurance? For example, every USPS Priority Mail Cubic package shipped within the United States is automatically covered for up to $100. Therefore, if the contents of your package are valued at less than $100, you may not need to purchase shipping insurance!
Declared Value
If your contents are over $100, then you’ll need to declare the value of your package to purchase additional insurance. Some items, like artwork, might have a limit on the value you can declare. Also, keep in mind that your carrier might not cover the contents of your package. For example, the major carriers (USPS, UPS, and Fedex) won’t insure precious gems or coins. If that’s the case, you may want to purchase shipping insurance through a third-party provider.
How Can I Purchase Shipping Insurance Through a Third-Party Provider?
Many third-party shipping insurance providers will insure parcels for higher amounts than the major carriers will. Furthermore, most of these companies will offer coverage where the major carriers won’t. For example, U-PIC covers missing packages that are marked as delivered, while USPS won’t cover that with their built-in insurance. Picking up insurance through a third-party company is as easy as spending a few minutes on their website. There are several third-party insurance providers out there. We’ve listed some below for you to check out.
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