Recently, we have seen delivery delays in Canada Post due to the labor strike. However, they have already mentioned the delays to persist in early January 2025. But what if these delayed deliveries can be covered by your insurance?
With that thought, we have found out the 5 best shipping insurance for delayed deliveries. Yes, you read it right. However, you can claim any compensation if you have shipping insurance for the delay. But you can’t find insurance for all types of delayed deliveries.
So, today we will discuss the insurance policies for delivery delays. Let’s learn about them and save some bucks on future shipments.
Why Are Shipping Delays So Common?
Though shipping delays are so common, delays in delivery can disrupt operations, affect customer satisfaction, and even result in financial losses.
Delivery times are usually dependent on distance. Packages between cities were delayed by 2 to 3 days, while those traveling further could take up to 10 extra days. However, some other reasons for shipping delays include:
Port Delays: A study by the Journal of Commerce (JOC) revealed that U.S. ports saw an average delay of 2-6 days in 2023 and this was due to increased import volumes.
Labor Shortages: Nowadays, truck driver shortage has been seen to be an ongoing issue in the logistics industry. This also results in delivery delays.
Unexpected Incidents: The COVID-19 pandemic and geopolitical tensions, strikes, etc. have always disrupted the global supply chain. Such unwanted incidents cause delivery delays.
Bad Weather: Natural disasters, such as tsunamis or snowstorms, can severely impact the delivery time, leading to delivery delays.
Read More: Debunking Common Misconceptions About Shipping Insurance!
What Is Delivery Delay Insurance?
Delivery delay insurance is a specialized policy that covers losses incurred due to delayed shipments. In most cases, delivery delay insurances are applicable for specified deliveries.
It’s meant to help businesses and individuals recover costs, penalties, or lost income caused by late deliveries. In fact, nearly 1 in 4 customers (23%) say they wouldn’t shop with a retailer again after a late delivery. This shows just how important delivery delay insurance can be.
Though insurance for delivery delays is not standard yet across all the insurance companies in Canada, some insurance providers are starting to offer specialized products that include compensation for delivery delays.
What’s covered in delayed deliveries can vary depending on the provider, but it usually includes:
- Compensation for lost items
- Compensation for missed deadlines
- Coverage for extra costs caused by the delay
This type of insurance is especially important for industries that handle perishable goods, seasonal items, or materials that need to arrive on time.
Why Shipping Insurance Matters for Delivery Delays
Shipping delays aren’t just an inconvenience—they can cause huge losses in business. In fact, a 2022 report by Statista found that U.S. retailers lost around $22 billion due to just shipping delays.
To avoid such losses, many businesses are turning to delivery delay insurance. Here’s how it can benefit:
Financial Protection
If your shipment is delayed, shipping insurance can help cover the costs of missed deadlines or lost goods. This is especially useful for businesses that rely on on-time deliveries.
Customer Satisfaction
On-time deliveries are key to keeping your customers happy. If delays happen, insurance can cover the losses, helping you maintain good relationships with your clients.
Keeping Things Running
Shipping delays can disrupt schedules and supply chains. Insurance acts as a safety net, helping you manage these issues so your business keeps running smoothly without major financial setbacks.
Now that we’ve covered the basics, let’s take a look at some of the best shipping insurance options available.
5 Best Shipping Insurance for Delayed Deliveries
As mentioned above, delivery delay insurance is not prevalent yet. But here are the 5 best insurance providers offering insurance for delivery delays:
1. DHL Shipment Insurance
A 2023 report by DHL revealed that over 80% of their business clients reduced financial risks with their insurance services.
DHL provides reliable insurance options, including coverage for delayed shipments. Their policies are great for both domestic and international shipping.
Key Features:
- Covers delays, lost, or damaged shipments
- Global network for quick claims
- Real-time tracking tools
Best For: International and time-sensitive shipments
2. ShipSimple Insurance Services
ShipSimple is best known for its excellent customer service and quick problem-solving. Their insurance plans are arranged for small to medium businesses needing personalized solutions.
They offer domestic and international shipment coverage to help businesses stay on track during delays.
Key Features:
- Affordable plans for various shipment types
- Coverage for delays lost items, and damages
- Easy claims process with fast resolutions
Best For: Businesses of all sizes needing flexible and reliable coverage
3. GLS Parcel Insurance
GLS saw a 20% drop in customer complaints about delays after improving their insurance coverage.
They offer reliable parcel insurance for businesses and individuals, focusing on European and North American markets.
Key Features:
- Covers delays from logistical disruptions
- Flexible policies for businesses of all sizes
- Fast claims process
Best For: Cross-border shipments between Canada, the U.S., and Europe
4. Loomis Express Insurance
Loomis Express offers some premium-type shipping insurances that makes it top choice for Canadian businesses.
Their strong focus on addressing shipping issues has earned them trust among small and medium businesses.
Key Features:
- Covers delayed, lost, or damaged shipments
- Budget-friendly rates for small businesses
- Nationwide coverage in Canada
Best For: Small businesses shipping within Canada
5. Canada Post Insurance
Canada Post also offers shipping insurances for domestic and international shipments, including coverage for delayed deliveries.
A 2023 survey showed that over 90% of insured customers found their claims process easy and efficient.
Key Features:
- Affordable packages
- Covers delays and lost shipments
- Seamlessly integrates with their shipping services
Best For: Personal shipments and small businesses
Final Thoughts
Shipping problems and delivery delays can be common. And it’s obviously not unusual. But to avoid critical damage or huge losses, some of the best shipping insurance for delayed deliveries can be proved beneficial.
However, carriers like Ship Simple also offer shipping insurance for a wide range of issues, including delivery delays. So, without any further worrying, jump into what your next shipment requires.
FAQs
What Is The Best Shipping Insurance For Delayed Deliveries?
The best insurance depends on your specific needs. For international shipments, DHL Shipment Insurance is highly recommended. For domestic deliveries in Canada, options like ShipSimple and Canada Post Insurance offer reliable coverage with personalized solutions
What’s Causing Shipping Delays?
Shipment problems and delays are usually caused by multiple factors, including port congestion, labor shortages, weather issues, and global events and according to the World Bank, supply chain disruptions surged by 35% in 2022 due to geopolitical issues and the ongoing pandemic. So, these can be some reasons for shipping delays.
Why So Many Shipping Delays?
The shipping industry is highly interconnected. A single disruption, such as a natural disaster or geopolitical event, can have a large effect on global supply chains, causing shipping delays. The rise in e-commerce demand has also strained existing infrastructure.
