Is International Shipping Insurance Worth It?

If you sell your wares online or need to get a package to someone outside the country, you may have considered purchasing package insurance. When you ship domestically, the cost of insurance for shipping is often covered up to a certain amount. But if you want secure international delivery, you will likely want to look into getting private international shipping insurance.

Although it may be an added cost, secure package delivery is typically well worth it: you will have peace of mind that the recipient will get their package, and you will not have to worry about anyone filing a claim. Additionally, if a claim is filed, you will have ample proof that you are not at fault. You will be safeguarding your company’s reputation and protecting yourself from financial liability.

Here are a few things you need to know about purchasing international private shipping insurance:

Is Private Shipping Insurance Available for Every Country?

Not every carrier provides coverage for every country. Most major carriers require the country you are shipping to to sign an agreement pertaining to handling, security, and promptness of shipment. If the destination country does not agree, the carriers will not provide insurance to those destinations.

Additionally, the major carriers also give careful consideration to the countries to which they extend shipping insurance, possibly excluding your desired destination. Typically, private shipping insurance companies are your best option for destinations that do not have agreements. Most of the time, they will also offer lower rates and higher coverage values, as well as coverage for shipping costs.

What Does Shipping Insurance Cover?

Typically, this insurance protects against damage or loss while in transit. Some policies may only pay for the repair of items damaged in transit, rather than the full cost of a replacement. Other policies only include the product cost and not the additional cost of shipping.

In addition, the process of filing a claim differs - some insurance providers only give a few days to discover the damage and file a claim; others may give you 30 days to report the damage from the time it arrives. Oftentimes, international shipping costs can be pricey, so you will want to go with the policy that provides the protection you will need at the lowest cost.

Shipping Insurance for High-Value Items

It should also be noted that the insurance most major carriers provide rarely covers the full value of high-end goods. If you are shipping items such as jewelry, expensive artwork, collectibles, or similar, taking out full-value private insurance is worth it in almost every case. Full-value international shipping insurance has a limit of up to $100 000, which is significantly higher than basic insurance.

Should I Always Purchase International Shipping Insurance?

If you are shipping something that is fragile or valuable, you should insure your package. In general, everything that is valued at more than $50 is a good candidate for international shipping insurance. But if the cost of repair or replacement is not worth the extra cost of the insurance, you may want to skip it in most cases. Think about your bottom line and how much you stand to lose should the worst-case scenario occur.

You Need to Consider the Destination Country

The human factor should not be discounted if your company regularly ships its products. The items will always need to clear customs, where they can easily be mishandled by customs officials. Some countries have an excellent reputation for securely clearing packages, while others are known as high-risk destinations.

If you regularly do business with a specific country, you are likely well aware of its customs officials’ reputation. Unfortunately, there is little that can be done about the way your packages are handled, but the country of destination can be an added incentive to taking out international shipping insurance.

Having No Insurance Is Risky

The primary purpose of international shipping insurance is to protect against loss or damage. However, you will also be less stressed knowing that your packages are covered. If you are a regular shipper, the stress factor might be just as important as the financial protection.

In case you decide you should take out international shipping insurance, contact Unival Logistics. We will ensure that your packages arrive safely and securely to the destination country and provide full-value insurance for all of your goods. Let us handle the risks of transit while you focus on running your business.

For more information about shipping with insurance through our service, contact us today!