Shipping merchandise can be stressful. However, shipping high-value items can be even more intimidating. A simple mistake in transit can see your fortune washed away, resulting in huge, unbearable losses. Whenever shipping high-value items, your primary concern should be the safe arrival to the final destination.
With many options available, getting the right one to ship your high-value goods can be challenging. It is equally important to choose the best shipping company as they minimize the chances of damage or losses to your fortune. Besides, ensure you purchase an insurance policy to cover your high-value shipment.
If shipping artwork, electronics, servers, musical instruments, network components, or any other valuable products, select a reputable and reliable shipping company. ShipSimple can help you with all your high-value shipping insurance. We have a comprehensive insurance policy that protects high-value merchandise, ensuring they arrive safely and in good condition. Read through to learn more.
What Is Declared Value?
Whenever shipping high-value products, you must declare their full value. But what is declared value? Declared value is the monetary worth of a shipment in transit. The client must communicate the actual worth of the shipment and provide supporting documents for proof of value.
The declared value guides the shipping company and the insurers to determine the appropriate shipping costs. It also helps the customs authority determine the customs duty chargeable. To the insurer, the declared value helps establish the maximum insurance coverage.
Declared Value Coverage – Definition and Purpose
Declared value coverage is the actual value the shipper declares against their shipment. High-value shipping must include insurance coverage to protect against damage, theft, and loss that may occur in transit.
The primary purpose of declared value coverage is to protect valuable shipments against financial loss resulting from damage, loss, or theft.
Major carriers, including UPS and FedEx, offer declared value coverage. Note that each carrier has unique guidelines that guide the requirements and pricing models when insuring high-value shipments.
Shipping High-Value Items – What to Insure
High-value items must be handled with care when shipping. Below is a list of items you should insure and handle carefully when transporting from one location to another.
Artwork: Artworks include prints, paintings, and sculptures. Most of them are fragile and cost a fortune. Thus, there is a need for care when transporting them.
Electronics: You should handle tables, computers, appliances, phones, security systems, intelligent devices, and any other electronics with the utmost care when shipping them. Any damage can have significant financial implications.
Luxury products: High-end products come at higher costs. It makes no sense to risk shipping it without insurance because the cost to replace it when damage or loss occurs is much higher.
Precious metals and stones: The good thing about jewelry is its small size, allowing easy packing and shipping. However, jewelry containing precious metals may require skilled personnel to pack and track it. Inappropriate handling may result in depreciated value, bringing losses to your business.
Oversized products: Oversized products like bikes and appliances need to be handled with care when shipping. Mishandling them may result in damage. To cushion yourself against any loss, consider insuring it before shipping.
When shipping any of the products in this list, you should purchase insurance against its declared value.
Shipping Insurance Limits
Valuable items can be very expensive. That’s why shipping companies have maximum value limits. The insurance policy will not cover valuable shipments above the maximum declared value limits. Below are the limits for major shipping carriers.
When shipping valuable items with FedEx Ground, your insurance coverage will be limited to $2,000 in declared package value. Though, some items are limited to only $1,000. However, FedEx’s 3-day, 2-day, and overnight freight services allow package insurance coverage up to $50,000 in declared value.
On the other hand, if shipping jewelry, precious metals, or gemstones, you can cover up to $100,000 for domestic shipping and $25,000 for international shipments. This exemption only applies to users with a FedEx account.
Shippers with a UPS account and those shipping from UPS stores can cover up to $50,000 of declared package value. However, if your shipment value exceeds this limit, you can purchase additional coverage through UPS Capital.
On the other hand, when shipping through the Internet and using a credit card to make payments, you can cover up to $5,000 of declared package value.
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How Much Does High Value Shipping Insurance Cost
Declared value costs vary depending on the carrier, the value of items shipped, and how you ship the items. The cost generally increases with the increase of its value. For most carriers, the first $100 of declared value is fully covered. However, any value excess of $100 attracts additional insurance costs.
However, high-value shipping doesn’t necessarily mean high shipping insurance. A reputable company that dedicates its services to helping small businesses should leverage all resources available to lower the shipping insurance cost. We at ShipSimple understand the struggles businesses go through in shipping products. That’s why we’ve set up our high-value shipping insurance below average market level.
Third-Party Insurance for High-Value Shipments
Opt for a third-party insurance company if the declared value insurance model doesn’t favour you or your business. The good thing about third-party insurance providers is their affordable shipping insurance rates.
Alternatively, you can cover the first $100 declared value for free with your shipping carrier and the rest with a third-party shipping insurance company. This practice will ensure you save more for shipping insurance coverage.
Direct Signature Requirement for Declared Value Shipments
Most shipping companies, carriers, and third parties will require a signature at the delivery or pickup point. The signature requirement applies to shipments worth more than a particular value, with most shippers requiring a signature for shipments worth $500 or more. You must provide a signature at delivery or pickup point for shipments worth $500 or more when shipping with FedEx. However, with UPS, you must sign your shipment delivery if it’s worth $1,000 or more.
If you’re unavailable for pick up, you can send someone else to sign. If no one is available, the order will be delivered at a different time.
Is Shipping Insurance Worth It?
Yes, shipping insurance is worth every coin. Insuring high-value shipments is even more worthwhile. High-value items are costly to buy and replace. When transporting them, accidents may happen despite carriers trying the best they can to protect them. Any accident can bring damage or loss to your high-value shipment. If not insured, you’ll bear the loss and won’t get any reimbursement.
Given that the replacement cost is extremely high, your business profit margins will significantly drift. However, when insured, the shipping insurance provider will reimburse your insured value. This will ensure your business’s projected margins maintain a positive trajectory.
Insure Your High-Value Shipment Today
You shouldn’t ship high-value products without insuring them. Such products hold high value, and replacing them may be costly, too. In addition, their delicate nature may increase their risk of damage. Besides being of high value, thieves may be tempted to steal them. So, to ensure the safety of the shipment and your peace of mind, insure them.
By now, you understand how shipping insurance works. You can insure your high-value shipment with your shipping company or a third party. Whatever your choice, ensure it is a reputable shipping company. They should have premium insurance services, excellent customer service, and low shipping insurance rates. Look no further; we’re here to help.
At ShipSimple, you’ll enjoy the best shipping services with comprehensive insurance coverage for your high-value shipment. All our customers enjoy customized services to address their business’s primary needs. We prioritize your peace of mind and, thus, do our best to ensure your valuable shipment arrives safely and in good condition. If your parcel gets damaged or lost in transit, our transparent insurance claim process will help you recover the financial losses effortlessly. Contact us today to enjoy our comprehensive, high-value insurance coverage.