What is shipping insurance?
Shipping insurance is an optional service that companies can purchase, whereby they will be economically reimbursed if their shipments are lost, stolen, or damaged. For small businesses and those making international shipments in particular, it can provide a lot of peace of mind. Covering 100% of the shipment value means that the seller can confidently issue a new replacement shipment to their customer, at no additional or minimal cost.
What does shipping insurance cover?
Shipping insurance can cover everything from e-commerce products to important documents like legal certificates. Different companies will offer various insurance models, but generally, they provide compensation in case of:
- Shipping delays
- Lost or missing goods
- Theft of goods
- Damage to goods in transit Generally, the cost of insurance is linked to the value of the goods.
What does shipping insurance not cover?
Shipping insurance generally will not cover the following occurrences:
- Damage caused by the package or its contents, such as leakage of content.
- Loss of weight or volume, wear and tear of the shipment.
- Loss, damage, or expense caused by insufficient or inadequate packaging or preparation of the shipment.
- Loss, damage, or expense attributed to the intentional misconduct of the customer or their agents.
