How to Make Shipping Insurance More Efficient

Protecting shipments against damage and theft is necessary. Regardless of whether you or your customers want to shell out a little extra money, there’s just some things you can’t avoid. Insurance is one of them! However, insurance doesn’t have to be a hassle. And, of course, the best insurance is insurance you don’t have to use! We’ll give you tips and pointers to make shipping insurance more efficient. Knowing the ins and outs of shipping insurance will help you and your customers have a better delivery experience without compromising reliability or coverage. 

How to File a Shipping Insurance Claim with USPS, UPS, FedEx, ParcelGuard, and More

When you file a claim for a damaged or lost parcel, you need to take it up with the issuing body. So, if you insured the package with USPS, you would need to file the claim with USPS. 

However, if you insured the package with a third-party provider, you would need to file the claim with them. However, this will require paperwork from the carrier that shipped the parcel as well. Below you will find where to go to begin the claims process. 

Note: These steps are intended for the party that sent a damaged or missing package. If you were the intended recipient, you will need to reach out to the seller or sender of the package.

How to File an Insurance Claim with Different Providers

How to File an Insurance Claim 

To file an insurance claim with most providers, you can follow these steps:

1. Start by gathering all the necessary documentation and information related to the shipment and the damaged or lost items. This may include the shipping label, proof of value or invoice for the items, photos of the damaged items (if applicable), and any other supporting evidence.
2. Contact the carrier 
3. Provide the required information, such as the tracking number, date of shipment, recipient’s address, and a detailed description of the loss or damage.
4. Upload any supporting documentation, such as the shipping label, proof of value, or photos of the damaged items. Follow the instructions on the claim form or requested by an agent and attach/provide any relevant files.
5. Review and submit the claim form. Make sure all the information provided is accurate and complete.
6. After submitting the claim, you will receive a claim number until the dispute is approved or denied.
7. The provider or carrier may contact you for additional information or documentation to support your claim. So it is crucial you keep your claim number.
8. If your claim is approved, you will be compensated based on the declared value of the items, up to the coverage limit.

Tips For Filing Your Shipping Insurance Claim 

Accurate Product Valuation: Ensure that the declared value of your products accurately reflects their worth. Overvaluing or undervaluing items can lead to issues when filing insurance claims. Keep records of product costs, including invoices, receipts, or appraisals, to support accurate valuations.

Keep All Packaging and Damaged Goods: When you are filing a claim, keep all packaging and the damaged goods as they were received, as photographs may be required for the claim processing. Do not dispose of any of the shipment materials or goods before the claim is completed.

Proper Documentation: Maintain thorough documentation of the shipping process. Take photos or videos of the packaged items before they are shipped. This evidence can be valuable when filing claims and proving the condition of the items before they were sent.

Streamlined Claims Process: Familiarize yourself with the claims process for insurance providers and shipping carriers. Understand the required documentation, timeframes, and procedures. Maintain organized records to facilitate the claims process should the need arise.

Provide Customer Support: Provide prompt and helpful customer support in case of shipping issues or damage. Respond to customer inquiries and concerns promptly, and assist them in filing insurance claims if necessary.

Continuous Improvement: Regularly evaluate the efficiency of your shipping insurance process. Analyze claim trends, customer feedback, and carrier performance to identify areas for improvement. Make adjustments to your shipping procedures as needed to optimize efficiency.

Tips For a Smooth Customer Service Experience

Clear Communication with Customers: Inform customers about the shipping insurance coverage and any additional options available to them. Clearly state the responsibilities and limitations of insurance coverage in your terms and conditions or shipping policies.

Provide clear instructions for the claims process: Submitting an insurance claim has a few moving pieces. Though the seller will need to submit the claim, the recipient may need to hold onto any damaged packaging as well as the items. Provide prompt and helpful customer support in case of shipping issues or damage. Respond to customer inquiries and concerns promptly, and assist them in filing insurance claims if necessary.Make sure that any steps such as photographing the packaging or damaged items are clearly outlined. Tell the customer not to throw the material away. Avoid having them mailing the damaged merchandise back to you until authorization from the carrier or insurance provider has been given.

Default Carrier Coverage for Shipping Insurance

Before deciding if you need to purchase insurance for a parcel, you first want to figure out if insurance is already included. Many carriers and shipping services provide coverage for shipments with a low declared value. While some services like USPS First Class Mail® don’t offer shipping coverage for shipments by default, others like USPS Priority Mail International provide $200 of default coverage. This means any parcel valued at less than $200 is eligible for reimbursement in the event that the shipment is damaged or lost in transit. Keep in mind, though, that carrier-provided coverage doesn’t cover as many incident types as some third-party providers. 

Default Shipping Insurance Coverage By Carrier 

UPS Shipping Insurance Default Coverage 

• UPS® Ground: The default coverage for UPS Ground shipments within the United States is $100 per package.
• UPS Next Day Air®, UPS 2nd Day Air®, and UPS® 3 Day Select: The default coverage for these expedited services within the United States is $100 per package.
• UPS Worldwide Express®, UPS Worldwide Saver®, and UPS Worldwide Expedited®: The default coverage for international shipments varies by destination but is typically around $100 per package. 

USPS Shipping Insurance Default Coverage

• USPS Priority Mail®: The default coverage for USPS Priority Mail shipments within the United States is $50 per package..
• USPS Priority Mail Express: The default coverage for USPS Priority Mail Express shipments within the United States is $100 per package. Additional coverage can be purchased.
• USPS Priority Mail International®: The default coverage for international shipments varies by destination but is typically around $200 per package. Additional coverage can be purchased.
• USPS Priority Mail Express International®: The default coverage for international shipments varies by destination but is typically around $200 per package. Additional coverage can be purchased.

FedEx Shipping Insurance Default Coverage

• FedEx® Ground: The default coverage for FedEx Ground shipments within the United States is $100 per package.
• FedEx Express Saver®, FedEx 2Day®, and FedEx Overnight®: The default coverage for these expedited services within the United States is $100 per package.
• FedEx International Priority® and FedEx International Economy®: The default coverage for international shipments varies by destination but is typically around $100 per package. 

What is ParcelGuard?

When it comes to efficiently insuring packages and protecting them, ShipStation has the perfect solution for you—ParcelGuard. This innovative shipping insurance service offers comprehensive coverage for lost, stolen, and damaged packages. What’s more, it covers porch piracy, ensuring your customers receive their orders safely. 

One of the best things about ParcelGuard is its affordability. With savings of up to 67% off carrier insurance, you can protect your packages without breaking the bank. ParcelGuard works seamlessly with all major carriers, both domestically and internationally. Whether you’re shipping locally or internationally, ParcelGuard covers the entire value of your shipment, up to $10,000.

Unlike most providers, ParcelGuard covers both branded and unbranded packages. So, whether you’re shipping with your logo on the box or using generic packaging, your shipments will be protected. 

ParcelGuard Coverage Costs

Different carriers charge different rates for coverage, you may find that some carriers charge a base fee, plus a rate on a sliding scale per $100. This can compound shipping costs and cause a headache. An efficient alternative is to use ParcelGuard you can save up to 67% on shipping insurance with ParcelGuard. You don’t have a base rate to pay, it’s just a consistent rate for coverage per $100 of an item’s declared value. Additionally, with ParcelGuard, you only have to familiarize yourself with one set of terms and services. 

Shipping Insurance Costs

*this is based on the declared value of the shipment per $100

How ParcelGuard and ShipStation Work Together

ParcelGuard is available within ShipStation through your carrier balance you use to purchase postage—simplifying your purchasing and billing processes. Furthermore, ParcelGuard offers an easy and convenient claims process right within your ShipStation account. You can file a claim in minutes, including multiple shipments in a single claim.

How to File a ParcelGuard Claim in ShipStation

Filing a claim with ParcelGuard is a breeze. Just follow these simple steps:

1. Go to the Shipments tab in your ShipStation application.
2. Select the shipments for which you want to file a claim.
3. On the popup window, click “Continue to ParcelGuard.”
4. Fill out the claim form through ParcelGuard, providing all the necessary details.
5. Submit your claim, and most claims are processed and completed within 7-14 days.