Shipping has its challenges, more so international shipping, which can present new obstacles to your e-commerce business. The long distance between the shipping point and the destination increases the risk of your shipment being damaged, stolen, or lost.
However, insurance coverage can give you peace of mind. When you insure your international shipment, you protect yourself and your business against loss, maintaining your profit margin projections. In the event of a loss or damage, the insurance company or the shipping company will reimburse your money in equal proportion to the insured value.
Read through to learn all you need to know about insured international shipping.
What Is International Shipping Insurance?
International shipping insurance is a policy purchased against merchandise shipped from one country to another to protect them against damage, theft, and loss. As much as international shipping companies try to protect shipments, some unavoidable circumstances, such as natural calamities or vessel mechanical failure, may result in accidents. Such accidents may result in the loss of some packages or the whole shipment. If the aftermath of such an accident results in substantial financial losses, which may take a while to recover, international shipping insurance is a must-have.
Traditionally, most people associated international shipping insurance with freight shipping alone. However, this isn’t the case anymore – you can insure individual packages or items in your shipment. Fortunately, you have a wide range of options for insuring your packages – major shipping companies offer insurance coverage of up to a particular value and additional liability coverage at a cost. Alternatively, you can opt for a third-party insurance company to insure your international shipment.
Most international shipping companies pair their shipping services with basic international shipping coverage. If you ship valuable items beyond the primary insurance policy, you may purchase additional insurance coverage from the same company.
Alternatively, a third-party insurance company can cover your international shipment at a lower cost. ShipSimple is a perfect example, offering international shipping insurance at pocket-friendly prices.
How Does International Shipping Insurance Work?
Understanding international shipping insurance won’t be an issue if you already know about shipping insurance. The two have no significant differences. You first purchase insurance from your shipping company or a third party (pricing will vary depending on the carrier and the package’s actual value).
When your shipment is delivered, inspect to check for damages. If any, file a damage claim with the shipping company or the third-party company that insured your shipment. Do the same if your shipment is missing. You may wait for a particular number of days (depending on the shipping company) before your shipment status is updated.
If confirmed lost, file a claim immediately before the claiming period elapses. Some companies reimburse their customers when their shipments are delayed beyond reasonable time.
But, before you consider to insure your shipment, ensure the products you ship can be insured. Depending on the carrier, some products may not be covered. Thus, you won’t get compensation if they are damaged or get lost.
What to Know About Insured International Shipping
It is important to remember the following when you consider insuring your international shipment.
International insurance covers international shipments against damage or loss.
While insurance policies cover most items, some items are not covered. Also, your shipments may not be covered when shipping to certain states.
Request for a quote to check if the items you ship internationally are covered. This process will also inform you if there are insurance options in the country you ship to.
Shipment protection is limited to declared package value. The insurance policy can’t provide coverage beyond the declared package value.
Insured International Shipping Cost
Insured international shipping cost varies depending on the carrier and the package value. Let’s look at USPS-insured international shipping to get an overview of the pricing model.
Priority Mail Express International Insurance
This policy covers up to $100 for document reconstruction and $200 for merchandise. You can purchase additional insurance if your shipment’s value exceeds the primary coverage.
Global Express Guaranteed Insurance
USPS Global Express Guaranteed covers up to $100 in declared value. However, you can purchase additional coverage up to $2,499.
Priority Mail International Insurance
This policy covers shipments up to $200. However, shipments with non-negotiable documents have coverage of up to $100.
Should I Purchase International Package Shipping Insurance?
Reputable companies have a history of shipping merchandise without experiencing challenges. If there is one, chances are very minimal. However, shipping internationally involves many risks, which may result in damage or loss of your shipment.
Most individuals opt not to insure their international shipments when the shipping company offers tracking. However, what they fail to understand is that their shipment can still be damaged or get lost even with tracking systems. To cushion yourself against any loss or damage, ensure you insure your international shipment. It becomes even more necessary to ensure your international shipment when shipping more valuable merchandise. This will ensure you get a reimbursement if the merchandise is lost or damaged in transit.
What to Consider When Purchasing International Shipping Insurance
Consider the following factors when considering purchasing international shipping insurance.
Go through the insurance policy terms and conditions. Every insurance company has unique insurance policy terms and conditions. Therefore, depending on the company, some items won’t be covered. Thus, it is worth knowing beforehand to avoid losses.
Understand the package requirements. Packaging is a crucial part of the shipping process. Therefore, each company has strict packing requirements that you must adhere to. If you package your products inappropriately and result in damage or loss, you won’t be reimbursed for any amount, even if you file a claim.
Familiarise yourself with the claim filing process. The claim filing process comes in handy if your products are damaged or lost. Some companies will require you to present the shipment details, including exterior and interior pictures before and after shipment, as proof of your claim. If the shipment is lost, you must send exterior and interior box pictures before you send them for shipping.
After you submit the claim, the shipping company will investigate it and cross-check if you followed all packing requirements. If confirmed, they’ll reimburse your money in proportion to the insured value of the shipment.
Benefits of Insured International Shipping
Insured international shipping has several benefits, including the following:
Comprehensive coverage. International shipping insurance covers your shipment against damage, theft, and loss. You can be assured that you’ll be compensated if anything in transit goes wrong.
Peace of mind. With international shipping insurance, you can have peace of mind knowing that your shipment is well-covered against loss or damage.
Simple claims process. The process of filing a claim for international shipping insurance is simple. This way, you can quickly get your reimbursement for damage or loss.
Insure Your International Shipments Today!
While the decision to insure your international shipment is on you, it is prudent to insure it. We can’t predict what’s to come in the future. Besides, accidents may happen at any time without warning. By insuring your international shipment, you’ll achieve peace of mind and stable projected margins in your e-commerce business.
There are many international shipping companies and third-party package insurance companies. However, not all are reputable. Choosing the right one is the most crucial decision any e-commerce business should make. Look no more if you’re looking for one. ShipSimple is a reputable international shipping insurance provider with years of experience insuring international shipments. Our first-class package international service and comprehensive insurance policy are tailored just for you. Our below-average market insurance fees will ensure you save more for other activities. If your products get damaged in transit or get lost, our team has streamlined the claim filing process for your convenience. Thus, getting a reimbursement will be hassle-free.
Sign up for free today to experience our high-quality professional insurance services. If you already have an account, log in and purchase shipping insurance from us. Contact us to begin your journey to e-commerce excellence today!