Any business that ships products directly to consumers or other companies must protect themselves from liability by obtaining shipping insurance. This following information explains what shipping coverage is, its benefits, and how much businesses can expect to pay for a shipping insurance package.
What is Shipping Insurance?
Shipping coverage is an optional service to protect against theft, damage, and loss of shipped goods. For example, if anything happens to the covered shipment while in transit, the shipper will be reimbursed per the coverage rules and regulations. The exact amount a shipper receives as reimbursement depends on the good being shipped, the value of the shipment, and the shipping carrier used.
How Much is Shipping Coverage?
The cost of shipping coverage varies based on the type of shipment, the value of the goods being shipped, the chosen carrier, and the mode of transportation. To find out what it would cost to cover a specific shipment, contact your local PostalAnnex shipping expert today.
Who Needs Shipping Coverage?
Neither the state nor federal government requires businesses to purchase shipping coverage. However, it is standard for companies that handle high-value or high-volume shipping to get shipping coverage to avoid losses. These businesses include:
- Ecommerce Stores
- Small Business Owners (who offer delivery services)
- Manufacturers and Distributors
Benefits of Shipping Coverage
Companies involved in shipping can benefit from acquiring shipping coverage in several ways. These include:
Financial Protection
Financial loss is a significant concern for most small business owners who ship merchandise. As customers expect a solution from the shipper whenever a problem arises, the financial burden is often left on the business. With shipping coverage, companies can mitigate concerns about financial setbacks as the coverage can assist in replacing and reshipping goods, or refunding clients.
Customer Satisfaction
Consumers today appreciate an efficient shipping experience. In the event of a poor shipping experience, most customers are unlikely to purchase from a business again. Overall, companies who have shipping coverage can maintain a good rapport with customers when things go wrong as it provides compensation in the case of loss, delays, or damages to goods.
Peace of Mind
Knowing that the goods you are shipping are covered for their total retail value is a huge benefit of shipping coverage. Being covered can also make the claim process simple, especially in the case that reimbursement is needed immediately. Both these assurances give business owners and consumers peace of mind when goods are in transit.
Shipping Coverage for Businesses
Shipping insurance is essential for businesses that provide delivery services. It offers protection of shipped goods against theft, loss, or damage while in transit. In return, businesses save money, retain customers, and have peace of mind. Contact your local PostalAnnex today to learn more about shipping coverage.