Insure Parcel Delivery
Shipping important items is often a stressful and difficult procedure. After all, there are a lot of things that could go wrong along the way, and if you're not properly insured for any eventuality, you may lose your valuables without adequate compensation. Whenever using a courier service, you should make sure that your goods are properly insured under a legitimate insurance provider.
There are two sides to the issue of insuring goods in transit. The first, quite obviously, is insuring your own goods. The second is whether or not the couriers themselves are insured against any unfortunate circumstances that may derail the delivery of packages. Learn all about what the courier insurance cover and how courier drivers can insure themselves from this article.
Shipping Insurance: What Are Your Options
You might find yourself needing different courier insurance options, depending on the fragility of the items you want to ship, as well as the distance they're going to be transported across. You may be able to get away without any transit insurance when transporting clothes from your home to a town located just a few dozens of miles away. However, if you're running a business or sending highly fragile goods to another country, acquiring comprehensive cover is in your best interest.
Most courier companies provide protection for goods in transit at a small fee. Below, we have compiled a breakdown of three of the most popular shipping companies' insurance costs and how they fare against each other. You might also want to opt for a third-party insurance company. The scope of their cover might be greater than in the case of these courier companies, but it's probably not the cheapest option out there.
DHL is one of the most commonly chosen courier services when it comes to international shipping. As such, their package insurance plans are some of the best in the business and should be sufficient for most of your shipping needs.
Their courier insurance plan is split up into DHL Shipment Value Protection and DHL Security Services. The former is focused on keeping you insured against physical damage or loss during transit, whereas the latter entails additional protection of your goods throughout every step of the supply chain and delivery process.
There is a catch to all that, though. If you're shipping an item that's worth less than $100, DHL will not assume liability for free. You'll need to pay a shipping insurance fee to protect your item. Finally, you need to keep in mind that their courier insurance policy does not cover indirectly damaged or lost items, and neither do they protect your cargo against loss or damage that is a result of a delay.
When you order a parcel delivery through DPD's Online Shipping Service, your items will be insured free of charge, but only under the guidelines established in the AVC/CMR Conditions of Carriage. This means that for free, this courier service will only provide minimal coverage that is contained within the terms of that legal requirement. Anything more than that will cost money.
You can purchase Increased Liability up to €520, at the price of €3.40 per kilogram. If your package's value is higher than €520, you'll have to fill out DPD's short form to help them calculate your specific insurance quote, and they'll provide you with a quote that matches the details of your parcel.
UPS has its own designated insurance provider -- the UPS Capital Insurance Agency Inc. This helps with coordinating insurance details to match your parcel's value and delivery distance much better than in the case of other providers who are not necessarily as well-versed in the insurance business as UPS Capital.
Items that are valued at less than $100 will be insured for free, and every additional $100 of value is priced at $1.05. It is a fair deal, especially when you compare prices with what other insurers and shipping companies charge. Keep in mind that a good deal comes with some trade-offs. The insurer will not provide you with compensation if the loss or damage was due to your items not being packaged correctly, being a perishable commodity (ex. food or beverages that can expire), or getting damaged as a result of a natural disaster.
The Third-Party Route
Aside from the insurance you receive from your chosen shipping company, you can always reach out to third-party insurance providers to safeguard your items from any eventuality that is not covered by your courier's policy. It is worthwhile to consider this route if you're transporting goods that are at a high risk of theft, or if your destination is known for volatile weather conditions. You can also take out a sweeping policy that will insure your goods across all major carriers. This is especially useful for business owners who ship a certain amount of products on a regular basis.
While third-party insurers provide a better value than basic insurance policies of shipping companies, they are also a fair bit more expensive. This makes them less optimal for individual customers. Unless you're shipping things across longer journeys on a regular basis (for example, to your family overseas), it might make more sense to stick to the insurance included in your carrier's price.
All couriers who transport goods that don't belong to them in exchange for money are legally required to take out a special courier insurance to protect themselves from legal recourse in case anything happens to the goods in transit. Most companies in the courier business protect themselves from paying for workplace injuries and road accidents by an Employers' Liability Insurance. This is why it is necessary for couriers to have their own policies in place.
Courier Van Insurance
This is the most common type of courier insurance taken out in the UK. It protects the courier's van and its contents against any unfortunate events that may damage the transported goods or the car itself. Courier insurance quotes vary from provider to provider, but they usually fall between £800-1000. The cost of courier cover also depends on the level of courier van insurance they decide on.
- Third-party only. Only the damage of items belonging to a third-party (i.e. the items being shipped) is covered by the courier van insurance policy.
- Third-party, fire, and theft. This level covers damage to third-party items, as well as fire damage and theft of courier vehicles.
- Comprehensive cover. In addition to covering all eventualities listed above, the comprehensive plan also insures couriers against incidents where they're found to be at fault.
Protect Your Shipments With Packlink!
Navigating the ins and outs of courier insurance policies of shipping companies and third-party courier insurance providers might get quite confusing. Thankfully, most courier services provide basic insurance for the most commonly shipped types of items, so chances are that there are no extra steps you need to take to protect your parcel.
Additionally, if you choose to ship with Packlink, your parcels will be covered for any kind of damage, partial or total loss of shipment within the specified timeframe between drop-offs and deliveries!