- Offer additional coverage, such as the cost of shipping as well as the declared value of your shipment.
- Put a cap on the value of goods they cover, and/or the amount of money they will pay out.
- Require you to prove that the damage to a package occurred during transit.
Why is shipping insurance important?
Shipping insurance isn’t just important for peace of mind – for an ecommerce business, it can actually save your bottom line.
For example, say you run an online pottery shop. A customer orders a $50 vase, which you pack safely in bubble wrap and ship out. Unfortunately, the carrier isn’t careful with the parcel, and when the customer opens the box, the vase is shattered.
Without shipping insurance, your business is in a bind. You could refund your customer, but you’d have to cover the expense yourself out of your profits. Alternatively, you could refuse to refund them and keep the money – but this will probably disgruntle the customer, and even discourage them from shopping with you again.
With shipping insurance, you don’t have to choose. For an extra fee up front, you can make amends with customers and keep your bottom line intact.