No matter how carefully you pack an item, you can never be 100% sure a package won’t get broken, lost or stolen. Shipping problems are very common and by purchasing insurance you will have peace of mind for both you and your buyers.
3rd Party Insurance is an insurance purchased on your behalf through a private company not affiliated with the carrier. They agree to cover your package in the event of loss or damage.
Here is some of the most popular 3rd party shipping insurance companies:
1. Shipsurance
Shipsurance is a shipping insurance company offering coverage for shipments sent via the major shipping carriers worldwide. This company will work with you on a claim by claim basis to make sure they are resolved in a timely manner. Their paperless claims management system allows their policy holders to file claims electronically and attach any pertinent information to the claim. The entire claims process can be tracked online and you will be alerted once a claim has been approved and payment has been remitted.
They cover artwork, antiques, fragile goods, and jewelry. As a Shipsurancepolicy holder, you will have coverage for all of your small parcels shipments as well as your large, common carrier shipments.
Pricing
Rates are typically 50%-90% less than the shipping carrier rates.
Benefits
- Paperless claims process
- Open API for reporting
- Big cost savings
- Gives actual insurance coverage
- Covers all carriers
- Integrated with most shipping systems
- Automated “eReport” software suite
- Claims processed within one week
Disadvantages
- Separate bill for insurance vs. the carriers
- Certain items are not allowed to be covered
- Shipsurance – Certain destination countries are not available for coverage.
2. U-PIC
U-PIC has been offering 3rd party shipping insurance worldwide for 20 years. Ship with the carrier and insure with U-PIC at a fraction of the cost. U-PIC has been providing discounted package insurance to organizations shipping parcels through the United States Postal Service, UPS, FedEx, DHL Global and most other major transportation providers.
Pricing
The cost of the insurance is based on shipping volume and other criteria. Rates are less than the shipping carrier rates. Endicia and DHL GlobalMail bundles this insurance in their products.
Benefits
- Greater discount when compared to the carriers
- Reporting software integrated with the carrier software
- Coverage for multiple carriers
- Offers actual insurance
Disadvantages
- Separate bill for insurance vs. the carriers
- Coverage is contingent on the carrier paying their portion
- Certain items are not allowed to be covered
- U-PIC – certain destination countries are not available for coverage.
3. Shipsaver
ShipSaver is an application which offers discount shipping insurance to eCommerce merchants on eBay and etsy.
Pricing
- USPS Shipping Insurance Domestic – $0.79 per $100 of coverage
- USPS Shipping Insurance International – $1.00 per $100 of coverage
- UPS Shipping Insurance – $0.60 per $100 after the first $100 (first $100 included by UPS)
- FedEx Shipping Insurance – $0.60 per $100 after the first $100 (first $100 included by FedEx)
Benefits
- Most claims processed within one week
- Paperless claims process
- Large cost savings
- Offers actual insurance coverage
- Integrated with Etsy
Disadvantages
- Separate bill for insurance vs. the carriers
- Certain items are not allowed to be covered
- Shipsaver – Certain destination countries are not available for coverage.
To get the best rate from an insurance company, provide your broker with detailed information about your shipments — the value of goods, manufacturers’ names, precise destinations, and your company’s shipping history. Insurers are worried by vague information, and will tend to charge higher rates.
- DIY Chicken Wire Jewelry Holder - June 27, 2022
- Jewelry Designer Manager Alternative - December 8, 2019
- 3 Tips To Immediately Boost Your Sales Today - May 12, 2019