Electronic products are embedded everywhere in our lives. From smartphones and laptops to gaming consoles and TVs. They’re essential for work, play, and communication. But with such high-value items, it’s crucial to protect them during shipping. That’s where shipping insurance comes in.
In this blog post, we’ll discuss why shipping insurance is essential for electronic products, the risks involved, and how to choose the right coverage. So, let’s get started.
Difference Between Freight And Parcel Shipping Insurance
There are different kinds of insurance for shipping electronics. Shipping insurance is what you buy for small packages sent through popular shipping companies like DHL, CanadaPost, Purolator and Loomis etc .
Freight insurance is for bigger shipments, like many boxes of electronics on a truck. The person sending the stuff usually buys this insurance because they own it. The shipping company might offer some insurance, but it’s usually not enough.
Cargo insurance is mostly for couriers shipped by boat, but it can also cover things moving by train or truck. Shipping companies often buy this insurance to protect themselves from problems.
What Are The Different Types Of Shipping Insurance For Electronics?
Shipping insurance is not only categorized by shipment volume and product but also by shipping frequency. The two common insurance are –
- Open Coverage
This type of insurance is ideal for frequent shippers. As it provides coverage for multiple shipments over a specified period. To determine your premium, the insurer will require information about your business. Which includes what types of goods are being shipped, the quantities, and the shipping frequency.
You pay a policy premium upfront and report your shipments regularly. These policies typically last a year and cover an unlimited number of shipments within that timeframe. After the policy expires, you can review and renew it.
- Single coverage
This type of insurance is suitable for infrequent or low-volume shippers. This type of insurance covers only a single shipment. You’ll need to determine the shipment’s value, purchase a one-time policy, and pay the premium. Single coverage policies do not renew, so you’ll need to obtain a new policy for each subsequent shipment.
What Does Shipping Insurance For Electronics Cover?
There are various types of shipping insurance for electronics, each with their unique range of coverage. Even within the same insurance type’s the individual policies may differ from each other. But in these are the common events covered in every insurance :
- Abandonment
If the shipment is regarded as being too damaged or costly to repair, the insurance may cover the value of the goods.
For example, if a shipment of consoles is caught in an accident and they become completely unusable, the insurance may compensate the shipper for the total value of the laptops.
- Acts of war
Coverage can extend to losses caused by war, civil hostilities, or civil unrest. This could include situations where a shipment is delayed or damaged due to a conflict or military action in the region.
- Customs Rejection
If customs authorities reject the shipment due to noncompliance with regulations, insurance may cover associated costs and losses. This could happen if the shipment lacks necessary documentation, contains prohibited items, or violates import/export laws.
- Natural Disasters
Coverage can include losses resulting from natural events like earthquakes, floods, hurricanes, or typhoons. For instance, if a shipment of electronics is damaged or lost due to a hurricane that causes flooding in the port area, insurance may cover the losses.
Here are some common natural disasters of Canada, which most companies can give you insurance for.
- Vehicle Collisions
If the shipment is damaged in a vehicle accident, insurance may cover the losses. This could occur if the truck carrying the shipment is involved in a collision, resulting in damage to the electronics.
- Weather-related incidents
Coverage can extend to losses caused by severe weather conditions such as storms, hail, or snow. For example, if a shipment of electronics is delayed or damaged due to a blizzard that closes roads or airports, insurance may cover the resulting losses.”
What Shipping Insurance For Electronics Does Not Cover?
What isn’t covered with Shipping Insurance for Electronics? This can depend on what kind of insurance you choose and your specific plan. For people sending stuff, insurance usually doesn’t cover damage caused by things they did wrong, like:
- Bad Packaging
If the boxes aren’t strong enough to protect the things inside, damage might not be covered by insurance.
- Broken Products
If the things you are sending are already broken, damage caused by that might not be covered.
- Dangerous Things
Insurance often doesn’t cover things that are dangerous, like chemicals or explosives.
- Certain Ways Of Shipping
Some plans might not cover shipping by plane or boat. Besides the obvious dangerous things, some plans might not cover certain kinds of electronics.
So people sending electronics in couriers need to read their insurance plan very carefully. They should also make sure the boxes are strong and the things inside are packed well. Check out our guide on shipping electronics for more tips.
Where To Buy Shipping Insurance For Electronics?
You can buy shipping insurance for electronics directly from ShipSimple, an insurance agent or through a broker or forwarder. Here’s how these options work:
- ShipSimple works directly with you to provide quotes and service your policy. They can help you find the most suitable coverage and assist with claims if necessary.
- Freight brokers have established relationships with national carriers and insurance companies. If you already work with a broker, they can connect you with a suitable insurance provider.
- Freight forwarders also have connections with insurance companies and often offer their own insurance packages. If you work with a forwarder, inquire about their insurance options
Or, you can alternatively Contact Us and let us streamline the whole process for you and take care of your shipping needs!!
Conclusion
Shipping insurance for electronics is very important. As it protects your valuable items while they’re being shipped. And by understanding the different types of insurances available and knowing what you need after carefully reading the rules of your plans. You can use shipping insurance to make sure your electronics are safe throughout the shipping journey.
As, insurance is not just about money. It’s also about giving you a peace of mind. By using insurance and getting the right coverage for all your shipmentss. You can protect yourself from unforseen problems and focus on your business without worry.So what are you still waiting for? Contact us to learn more!
