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HomeResourceProduct Shipping Insurance: Does Your Business Need It? 

Product Shipping Insurance: Does Your Business Need It? 

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The last thing you want to worry about is that your product ends up in a damaged state after leaving your facility or business. Regardless of how it’s handled, it’s still representing your brand and product to the people who receive it. Not only delays are costly, but they can also damage your business relationships. 

Suppose the idea of losing an order due to a courier’s negligence makes you nervous. In that case, you should consider insurance. One method to guard against lost expenses is to purchase shipping insurance. If a delivery is lost, damaged, or stolen en route, your company can get a refund with shipping insurance.  

Related Post: 6 Tips For A Stress-Free Cargo Shipping

With the use of technology, product shipping insurance may be easily linked to your existing system without any further effort on your part. Check out eCabrella.com to see how shipments aren’t only insured with any carrier. You also receive access to several other advantages of trusting a reliable insurance provider. 

What Are The Consequences Of Damaged Items In Shipping? 

If your items are damaged in transit, you’ll have to ship out a new one to compensate for the lost revenue. Even just determining where the harm occurred and who’s responsible can be a time-consuming task.  

What Are The Consequences Of Damaged Items In Shipping

Whether or not the carrier or damager will shoulder the bill or they have the insurance to do so can be a big issue. Although the third party may be covered by insurance, filing a claim for damaged items might take some time. In most circumstances, it may be less expensive to pay it yourself rather than spend time monitoring the claim or waiting for the third party to do it. 

Also, shipment protocols and best practices can be somewhat hard for business owners, especially when delivering alcoholic beverages with more significant shipping limitations. Therefore, the need for product shipping insurance is essential for your business. 

Also Read: 5 Common Business Mistakes And How To Avoid Them

What Is Product Shipping Insurance? 

A shipping insurance policy is a type of protection used to safeguard goods from various risks, such as damage, theft, and improper handling. Shipping insurance covers these items from when they leave the specified shipping site until they arrive at their final destination. 

What’s also good about product shipping insurance is the protection against unforeseen expenses and delays, which helps avoid costly mistakes. Having the right insurance can help minimize risks and ensure a smooth and safe delivery. Instead of biting the shipping fees for not delivering on time, the exporter can trust that the shipper will pay for the damages. 

What’s The Coverage Of Product Shipping Insurance? 

Different types of shipping insurance policies can cover different situations. The policies offered and the services will also vary. A shipping insurance policy covers the costs of various incidents that happen when the seller has no control over the goods or the delivery. Note that each insurance provider has unique requirements and coverage details that are specific to their clients. 

How Much Does Product Shipping Insurance Cost? 

It’s typically around 1.5 to 4% of the item value for a single shipment covered by insurance. You can check with the insurance provider if you can choose to insure all shipments over some time with blanket shipping insurance. It’s also important to know that many factors influence the cost of these policies, making them more attractive to consumers. 

  • the insurer 
  • the shipper 
  • nature of the shipment 
  • worth of items 
  • transportation mode 
  • destination and origin 
  • previous history of loss or insurance claims 

Also Read: 5 Ways To Protect Your Business Property

What Are The Benefits Of Product Shipping Insurance? 

Because parcels can get damaged or lost, it’s a good idea to get them insured. Take into account these benefits of having product shipping insurance: 

  • You’ll be paid for any damage or loss of your package as long as it’s properly packaged. 
  • In an emergency, it provides security while also allowing you to respond quickly to your consumers. 
  • You’ll be compensated for your purchase price plus shipping expenses so that you can send a replacement to your customer at no further cost to you. 
  • The chances are that customers who’ve experienced a bad shipping experience never purchase from the same business again. 
  • It helps businesses avoid paying for costly and time-consuming paperwork.  

Please don’t forget to insure your parcels during the holidays, even if you don’t want to pay for them out of pocket. During this time, carriers may handle more packages than usual, increasing the likelihood of damaged or lost items. 

Takeaway 

Many factors go into play when it comes to handling and transporting costs. As a result, some items may get damaged as they make their way to their destination. Having the product shipping insurance can help keep your business running smoothly and minimize the risk of unexpected expenses.  

While many carriers offer minimum coverage for most shipments, product shipping insurance provides more excellent protection and convenience. Your insurance provides peace of mind and the total value of your shipments. Thus, it allows you to focus on what’s important to you and maintain a healthy cash flow to your business.  

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