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How to make freight insurance more efficient?



Do you have an online store and want insurance coverage for the goods you send to customers? Well, in that case, shipping insurance can be very useful. However, there are a few things to know before buying one for maximum peace of mind and value for money.

Let's discuss different types of freight insurance:

Before we highlight other factors that should be considered to make freight insurance more effective, you should know the most common types of freight insurance . This will help you decide which one to choose from the beginning and plan your shipments more efficiently.

  • Carrier Insurance: It is provided by your carriers like USPS, DHL and FedEx, etc. You usually get $ 100 in coverage for the shipment by default. However, the cost varies from $ 0.75 to $ 0.85 for every $ 100 value declared over the standard amounts of coverage for additional coverage.
  • Third Party Protection: This is where you work with a third party insurance provider such as Paradiso Insurance to cover your shipment – you no longer rely on your carrier for coverage. The biggest advantage of using third party insurance companies is their competitive rates.
  • Self-insurance: This is exactly what it sounds like; you ensure that the shipments are sent to your customers yourself. This is done by adding an extra insurance fee at the checkout side, and a pool of money continues to grow for each product sold. You can then use that amount to offer coverage if a claim arises. However, it can be difficult to make the product price attractive when an insurance fee is charged.

So, Courier vs. 3rd party freight insurance – which is best?

If you ask us, we would suggest that you buy a third party freight insurance and not because we are one of them. But because it beats the courier's freight insurance in all areas.

A third-party freight insurance is cheaper than courier insurance, especially for high-ticket goods with thousands of dollars in declared value.

In addition, claims management is faster with third-party insurance companies. Unlike couriers, their only focus is on offering insurance, so they already have the resources and manpower to process claims.

3 Tips for More Effective Shipping Insurance:

  • Go through the fine print carefully: If you decide to to get freight insurance, be careful with the fine print. Go through it with a magnifying glass, special section that contains coverage amounts, covered items and conditions for refusal of claim.
  • Do not just rely on declared value: If you receive shipping insurance from your courier, be sure to get additional coverage for items worth more than $ 100. This is because the courier with a declared value of 100 USD is only obliged to cover up to 100 USD if you submit a claim.
  • Always report a claim as soon as possible: When you discover that your shipment is stolen, damaged or lost, file a claim as soon as possible. Make sure you know the cut-off time for your courier and file your claim before it runs out. freight insurance for all needs. Feel free to call us at (860) 684-5270 and consult with the experts today!


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