Shipping Insurance

Shipping insurance is vital to providing your customers a quality product, to protecting yourself from money loss, and to giving everyone an overall sense of peace of mind through the shipping process. Therefore, shipping insurance is something that no company can afford to skimp on. There are many places to get shipping insurance, and it can also be done quite easily.


1. What Is Shipping Insurance?

Shipping insurance is one of the most important things you will have in your business or in your personal life. When you send an item, no matter what type of item it is or how much it is worth, there is going to be a period of time in which you do not have control over that item. During this time, your item might be lost, stolen, or damaged. There are cases in which shipped items show up broken, or in which shipped items never show up at all. Therefore, you should invest in shipping insurance to make sure that you get your money's worth to cover such occurrences.

Shipping insurance is money that you pay before the item is shipped. Just like insurance for health, life, or home, shipping insurance is provided by a company that will reimburse you for the item that is insured, if it is lost or damaged. You can pay shipping insurance when you send an item, and if that item does not arrive at its destination in the same condition that it left, you will be eligible to receive money for that item.

Shipping insurance is similar to the types of insurance with which you are most likely familiar; if you do not use your shipping insurance, you will not be able to get a refund. Shipping insurance works in the same way as regular insurance. The money that is collected through people buying the insurance is the money that is used to pay people in the event that their item is lost, stolen, or damaged. Therefore, you cannot get refunds for unused shipping insurance.

2. Where Can You Find Shipping Insurance?

There are many places to find shipping insurance. The first place that you are going to want to look is with the company that is going to ship your item. This company is fully in charge of your item, and therefore will be responsible for paying you if your item is lost, damaged, or stolen. In fact, going through the shipping company makes the most sense because you know that the money will be a guarantee.

However, when you are going through the shipping company for your shipping insurance, you want to read the terms of the policy very closely. At times, there are some situations that the shipping company will deem out of their control, and therefore they might not pay out in these situations. Therefore, a close reading of the policy is imperative because you will know whether or not you need to purchase additional shipping insurance.

There are some situations in which you would want to purchase shipping insurance that is not provided by the shipping company. The first is the aforementioned situation in which the shipping company has stipulations on their shipping insurance. Having additional insurance provided by a third party might benefit you in this situation. Another case in which you would want additional shipping insurance would be in case your item(s) are worth more than the company will insure. For these policies, you want to seek out third party insurers who can provide you with the necessary insurance.

3. Shipping Insurance For Moving

A specific case in which you will need shipping insurance is in moving insurance. When you are moving a home or a business to another location, everything in that home or business must be moved. Often, this is more work than you can do on your own. There are two types of moving insurance that you can purchase. One type helps you move yourself, and the other protects you when others are moving you.

In the first type of moving insurance, you will purchase a policy that will protect your items as you move them from one place to another. This is often a difficult type of policy to get, because most companies feel hesitant to provide it. The reason that they feel hesitant is that when people move themselves, they are in control of all their items, and may not pack them securely. However, there are companies that provide this type of moving insurance simply because they realize it is important. A person might need moving insurance if well-packed items fall off a truck and break, or if the car with all their items is stolen from a hotel parking lot. There are many instances in which you might want this type of moving insurance, so it is important that you find a company that can provide this for you.

The second type of moving insurance is more common because it is insurance on items that are being moved for you. This type of shipping insurance would be found through the company that is doing your moving. If you are packing your items and then using movers to take them to the new place, you are going to want to have shipping and moving insurance on them. These policies will work in several ways. If you have more items than you can inventory, you will want to purchase a flat rate moving insurance. This will cost you a flat rate, but will then pay out up to a flat rate. This is best if you are moving your entire household, because chances are that this flat rate policy will cover anything that might be damaged.

However, if you are moving several large, expensive, or rare items, you might want to opt for itemized moving insurance. This is moving insurance that is tailored to your needs. You will have to describe each item that you would like insured, and then pay for separate insurance on these particular items. This is the best course of action for someone moving a small amount of things, or moving things that are exceptionally expensive or rare.

4. Shipping Insurance For Businesses

If you own a business that requires you to ship many goods to many areas, you want to consider a specific kind of shipping insurance. This kind of insurance could even be considered discount insurance, because it is the most affordable. Most companies that provide this type of shipping insurance provide it at a yearly rate, which means that you pay once a year, and then all your shipping is covered by the shipping insurance.

This type of shipping insurance is very important for you to have because when your business depends on shipping items from one place to another, chances are that things will happen to these items. If you build your livelihood on having customers who expect items to arrive on time and undamaged, you want to be sure that when these things do happen, you are covered.

With business shipping insurance, you will need to find a specific insurance agent that can cover all your needs. Most likely, you will end up with a personal shipping insurance policy that is unlike any other company's shipping insurance policy. However, it will be the most beneficial situation for you.

5. Shipping Insurance For Freight

Shipping insurance for freight is very similar to shipping insurance for businesses. The difference is that it works on a slightly higher pay scale and in a slightly different way. This usually has to do with the fact that the items that are shipping through freight are much different than items shipped through a postal service. Therefore, the shipping insurance for freight should only be purchased if you send a number of items through freight.

Often, a freight shipment is something that is not sent every day. Therefore, you might want to consider purchasing shipping insurance for freight on a one-time basis, per shipment. If you have a few shipments a year, you might be better off with this type shipping insurance policy.

6. Full Time Shipping Insurance

Whether you own a business or simply send a lot of items, you might want to consider having full time shipping insurance. This is shipping insurance that is not dependent on the fact that you are moving, the fact that you own a business, or on any other factor. It is shipping insurance that will belong to you, no matter what you send or what your purpose is in sending it. Therefore, shipping insurance that is considered full time shipping insurance is seldom used and quite rare. This is because most people who have shipping insurance prefer to have it more customized. Yet, there are people who simply want to have shipping insurance as part of their insurance policies.

Generally, a person should deal with their regular insurance provider to obtain full time shipping insurance. This is another type of shipping insurance that is often found as discount shipping insurance. However, this type of shipping insurance will have a cap on the amount of money for which an item can be insured, and also the amount of money a person will get if they file a claim.

7. Temporary Shipping Insurance

Temporary shipping insurance is what most insurance policies that deal with shipping are going to be. This is the type of shipping insurance that you will find with mail carriers, postal and package services, and other companies that deal with shipping. Often, the temporary shipping insurance is a one-time insurance that is taken out on the specific item you would like to ship.

With temporary shipping insurance, you can often get insured for as much as you would like on the particular item. The cost of the insurance will vary with the cost of the item and with the distance the item will travel.

8. Shipping Insurance Rate Options

All types of shipping insurance are going to cost different amounts. These amounts will be based on several factors. The first factor is the value of the item. Generally, shipping insurance rates will be higher for items that cost more money. They will also be higher for items that are rare or one of a kind. This is because replacement of these items will cost the insurance company more money.

The cost for shipping insurance will also vary with the type of item you are sending. This has a lot to do with how likely the item is to be damaged. For instance, shipping insurance on a very fragile item might cost more than shipping insurance on an item that is less likely to break. This is simply because the items that are more likely to break are more susceptible to damage and will require payment from the insurance company.

Another factor that will help determine shipping insurance rates is the distance the items have to travel. This is because there is a greater probability that something will happen to items that have to travel a considerable distance. Therefore, if you are only sending an item a short distance, your shipping insurance might be cheaper.

9. The Dangers Of Skipping Shipping Insurance

No one likes to have to pay extra money to send something somewhere. Therefore, many people skip the shipping insurance. Often, a person figures that it is very unlikely that something will happen to their item, and they decide that it is not worth the cost of the insurance. However, you should know that having shipping insurance, even cheaper discount shipping insurance, is a much better idea than not having it. If you do not pay for shipping insurance, and your item does not arrive, you will have no choice but to replace the item yourself. Another reason to have shipping insurance is that shipping insurance is often what allows you to track an item or a package. This is one of the best tools that you will have for keeping track of things that you own. Therefore, shipping insurance is something that you should never skip on, no matter how expensive it might be.
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