{"id":28483,"date":"2022-10-14T11:08:30","date_gmt":"2022-10-14T10:08:30","guid":{"rendered":"https:\/\/localhost:10003\/should-you-buy-shipping-insurance\/"},"modified":"2023-10-25T10:52:49","modified_gmt":"2023-10-25T09:52:49","slug":"should-you-buy-shipping-insurance","status":"publish","type":"post","link":"https:\/\/www.ecommercefulfilment.com\/en_US\/resources\/shipping\/should-you-buy-shipping-insurance\/","title":{"rendered":"Should you buy shipping insurance?"},"content":{"rendered":"<p>When you\u2019re shipping high value items or large quantities of goods, you\u2019ll naturally want to be protected if things go wrong. In the same way we insure our cards, houses, and mobile phones, shipping insurance provides us with some financial protection should shipping issues arise that aren\u2019t within our control.<\/p>\n<p>Whether you\u2019re <a href=\"https:\/\/www.ecommercefulfilment.com\/en_US\/fulfillment-centers\/\">shipping goods nationally or internationally,<\/a> there\u2019s a lot of variables that can affect whether or not a shipment arrives safely or on time. Bad weather plagues some parts of the world, road accidents are unfortunately common, and vehicles can get damaged or break down.<\/p>\n<p>And, if the last few years have taught us anything, it\u2019s that plenty of unforeseen issues can arise to put significant strain on supply chains and shipping.<\/p>\n<p>In this guide, we\u2019ll break down everything you need to know about shipping insurance.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">In this article<\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.ecommercefulfilment.com\/en_US\/resources\/shipping\/should-you-buy-shipping-insurance\/#what-is-shipping-insurance\" >What is shipping insurance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.ecommercefulfilment.com\/en_US\/resources\/shipping\/should-you-buy-shipping-insurance\/#what-is-covered-by-shipping-insurance\" >What is covered by shipping insurance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.ecommercefulfilment.com\/en_US\/resources\/shipping\/should-you-buy-shipping-insurance\/#benefits-of-shipping-insurance\" >Benefits of shipping insurance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.ecommercefulfilment.com\/en_US\/resources\/shipping\/should-you-buy-shipping-insurance\/#is-shipping-insurance-always-necessary\" >Is shipping insurance always necessary?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"what-is-shipping-insurance\"><\/span>What is shipping insurance?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Shipping insurance is a product for individuals or businesses that can provide compensation or a reimbursement if a shipment is lost, damaged, stolen, or delayed during transit. Upon entering an agreement with your shipping insurance provider, they will take financial responsibility for the goods until they have reached an agreed location in good condition.<\/p>\n<p>Most couriers offer their own form of shipping insurance, but you can also purchase insurance from third-party providers too. Third-party insurance providers are often seen as more reliable than insurance from the carrier, and tend to process claims quicker, have less restrictions, and are generally seen as easier to work with.<\/p>\n<p>Shipping insurance is an invaluable safety net for exporting goods. It\u2019s a peace of mind fee that offers protection against losing assets and lost revenue should anything out of your control occur. Just make sure your items are packed properly, as poorly packed items will invalidate a claim.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-is-covered-by-shipping-insurance\"><\/span>What is covered by shipping insurance?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Like all insurance products, coverage will depend on the terms and conditions of the policy you have taken out, as well as the insurance provider you\u2019ve chosen. This means that you will need to do your research and select the most appropriate policy for your needs, making sure that the shipping insurance covers the value of goods and the type of goods you are shipping, as well as the method of shipment.<\/p>\n<p>Typically, a good shipping insurance policy will cover theft, damage, delays, or loss, for a variety of reasons including weather, breakdown, customs delays, and more. Here\u2019s a brief overview different companies within the UK that offer shipping insurance both domestically and internationally:<\/p>\n<p>(Note: the guide below is designed to be a brief overview, and not a replacement for researching the best policy to fit your needs.)<\/p>\n<h3>Royal Mail<\/h3>\n<p>Royal Mail is the UK\u2019s most popular company for domestic shipping, and businesses can ship internationally with them, too. Royal Mail offers compensation for lost \/ damaged items as standard, although there\u2019s terms and conditions to be aware of that impose quite a few limitations. They\u2019ll also only cover you up \u00a32500 worth of damages, so you\u2019ll need to take out additional insurance for larger shipments.<\/p>\n<h3>DPD<\/h3>\n<p>Like Royal Mail, DPD has a built-in compensation programme, but only when you use their Online Shipping Service. The compensation is advertized at \u00a33.40 per KG for domestic shipments, and slightly less for international. If you\u2019re in a contract with DPD, you can insure your shipment for up to \u00a313,000.<\/p>\n<h3>Parcelforce Worldwide<\/h3>\n<p>Similar to Royal Mail, Parcelforce offer compensation as standard across their express services, for up to $200 depending on the items. For shipments that hold additional value, you\u2019ll need to take out enhanced compensation for loss or damages worth up to \u00a32500 per consignment.<\/p>\n<h3>Evri (Hermes)<\/h3>\n<p>Evri does have its own shipping insurance, but it\u2019s fairly limited when compared to the previous providers on this list. All shipments up to \u00a320 are covered for free, but you\u2019ll need to purchase an additional policy to insure goods up to \u00a3999. This makes Evri fairly friendly for single shipments, but less so for bulk shipments.<\/p>\n<h3>DHL<\/h3>\n<p>DHL has a Shipment Insurance product that costs \u00a312 or 1.5% of the value for higher value shipments. It\u2019s advertized as a comprehensive coverage for damage or loss, although there are quite a few exclusions on their terms and conditions.<\/p>\n<h3>Third-party insurance<\/h3>\n<p>In addition to the first-party shipping insurances detailed above (and there\u2019s more we\u2019ve not mentioned), you can also take shipping insurance out via a third party company. Third-party insurance is often more flexible, especially if you\u2019re shipping large quantities of goods that first-party providers won\u2019t cover. It\u2019s easier to tailor a policy to your specific requirements, and you\u2019ll probably find the claims process to be quicker and smoother too.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"benefits-of-shipping-insurance\"><\/span>Benefits of shipping insurance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are a number of benefits that shipping insurance provides to both your business and your customers.<\/p>\n<h3>Financial protection<\/h3>\n<p>Not having shipping insurance in place &#8211; especially for high value shipments &#8211; can have some serious consequences if things go wrong. For many eCommerce businesses, a significant proportion of assets is tied up in stock, and losing it without protection in place can harm growth, and even prove fatal. Shipping insurance protects you against catastrophic losses in the case of unforeseen problems.<\/p>\n<h3>Peace of mind<\/h3>\n<p>As the old saying goes, you can\u2019t put a price on peace of mind. That\u2019s not strictly true, of course, as in this case it\u2019s the price of your shipping insurance. Having an insurance policy in place can remove much of the anxiety associated with shipping large quantities of your hard-earned goods across the world. You\u2019ll probably find yourself worrying less about whether or not your shipment will arrive in one piece, giving you more mental space to focus on other aspects of your business.<\/p>\n<h3>Customer service<\/h3>\n<p>If something happens to your stock, you\u2019ll likely need to inform any customers with outstanding orders. While some customers will be more understanding than others, it\u2019ll significantly soften the blow if you promise to send them a replacement and soon as possible. Without shipping insurance in place, it\u2019s more difficult to be flexible with customers, as you may struggle to finance the new order if you don\u2019t get reimbursed by your insurance company.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"is-shipping-insurance-always-necessary\"><\/span>Is shipping insurance always necessary?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The importance of shipping insurance generally rises in parallel with the value of the shipment. If you\u2019re shipping small, inexpensive orders, you probably won\u2019t need to find shipping insurance. Most carriers include compensation for smaller shipments as standard, and even if they don\u2019t, buying insurance for every single small order isn\u2019t worth the time or money.<\/p>\n<p>You\u2019ll only really need to get shipping insurance when the value of the shipment exceeds the amount of money you\u2019d be comfortable to lose. This amount will change from business to business &#8211; a startup company will likely have a lower threshold than an established, profitable business.<\/p>\n<p>Here\u2019s some examples of scenarios where we\u2019d recommend shipping insurance:<\/p>\n<ul>\n<li>Shipping stock to a warehouse<\/li>\n<li>Long distance shipping<\/li>\n<li>Shipping to locations with extreme weather<\/li>\n<li>Wholesale shipping<\/li>\n<\/ul>\n<h3>Need help with shipping? Speak to James and James<\/h3>\n<p>James and James are a 3PL based in the UK, with fulfillment centers across the world. We <a href=\"\/order-fulfilment\">store, pick, pack, and ship products<\/a> anywhere in the world, allowing you to spend less time on fulfillment and more time on growing your business.<\/p>\n<p>If shipping is becoming a headache for your business, we can help. Whether you\u2019re selling in the UK, EU, or USA, you can ship your products to one of our fulfillment centers and cut down on shipping costs, insurance policies, and delivery times for your customers. We work with all major carriers, and our shipping experts will help you pick the most cost-effective shipping solutions.<\/p>\n<p>To find out more, <a href=\"#requestQuote\">get in touch<\/a> with us today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you\u2019re shipping high value items or large quantities of goods, you\u2019ll naturally want to be protected if things go wrong. In the same way we insure our cards, houses, and mobile phones, shipping insurance provides us with some financial&#8230;<\/p>\n","protected":false},"author":9,"featured_media":27893,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"yes","_lmt_disable":"","footnotes":""},"categories":[381],"tags":[],"class_list":["post-28483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-shipping"],"acf":[],"modified_by":"James Dillon","featured_image_src":"https:\/\/www.ecommercefulfilment.com\/wp-content\/uploads\/2022\/10\/Shipping-insurance-landscape.png","featured_image_src_square":"https:\/\/www.ecommercefulfilment.com\/wp-content\/uploads\/2022\/10\/Shipping-insurance-landscape.png","author_info":{"display_name":"J&amp;J Global Fulfilment","author_link":"https:\/\/www.ecommercefulfilment.com\/author\/james-and-james\/"},"_links":{"self":[{"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/posts\/28483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/comments?post=28483"}],"version-history":[{"count":0,"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/posts\/28483\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/media\/27893"}],"wp:attachment":[{"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/media?parent=28483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/categories?post=28483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ecommercefulfilment.com\/wp-json\/wp\/v2\/tags?post=28483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}