Parcel insurance or shipping insurance is the cover that provides you with peace of mind when your shipment is in transit. The cover is there to protect you should your shipment gets lost, stolen or damaged while on transit.
You can also decide to track your shipment outside the insurance, to help you that your policy is intact. You can’t imagine how it would be when your shipment which could be your goods get stolen or damaged and there is no cover. Sometimes it could be that another person mistook your parcel.
If you are living away from home and usually have to send stuff home to your parents. The protection for the shipments you would be sending or receiving against damage, theft or loss is what we are talking about.
If you are interested in knowing all about parcel and shipping insurance, then you have chosen the right article. In this article, we will tell you all you need to know about parcel insurance.
From how it works, companies that insure parcels, how you can start and everything else there is about shipping insurance. Keep reading to get the packaged knowledge about parcel insurance here.
What is parcel insurance?
As the owner of a large business or a small business, you are definitely going to end up dealing with shipping. Whether you are receiving goods or you are shipping goods, there are certain things you would likely encounter when it comes to shipping.
Some of the things you could encounter may include damage to your goods, theft or loss f your goods. Now, parcel insurance or shipping insurance is the cover you get in case your shipping goods get stolen or lost or even damaged while in transit.
Maybe also you do not have a business but you ship stuff and send parcels home or anywhere. Shipping insurance is the policy a shipper(goods or anything) can purchase to get reimbursed for every one of their shipments that are lost, stolen, or damaged while on transit with a courier.
Shipping insurance is, as said, a kind of protection which allows traders to secure the products that are being sent by them or to them. It covers your shipment beginning from the time it is dispatched until it arrives at its final destination, and it protects it from damage, theft, and mishandling, among other things.
Why do you need parcel insurance?
If you are a business person you would know that when you buy goods worth millions and then in the process of shipping them to you they get stolen. The person may die of high blood pressure.
Let us say your shipment is by sea then the boat capsizes and the whole goods are destroyed, what would you do? It is not to scare you but, circumstances are inevitable.
Talk of armed robbers on the highway, capsizing boats, misplaced goods or any other things that may happen. Now, you do not want those cases when they inevitably happen to deprive you of your happiness.
You want that your goods will be covered and the cost repaid, not by the carrier but by your policy. The peace of mind that the insurance type provides is the main point of it.
Benefits of parcel insurance.
There are many benefits why you would want to get parcel insurance and they would be listed here.
Now that you know what parcel insurance really talks about and why you need to get it, you want to know what you gain from the policy.
- General average cost protection
- High risk cover
- Security
- Protection against mishaps
General average cost protection
The general average cost is the cost that all traders involved in the cause of damage to shipments pay. So, if you have parcel insurance cover, it will cover the cost of the general average which everyone else would pay.
High-risk cover
Parcel insurance allows the insuring company would pay you the financial cost of your damaged shipment. The repayment of the cost would be in full.
On the other way round, therefore, parcel insurance simply means paying ahead of time for the damage that may be done to your goods. The cost of your goods may be higher than the cost of getting an insurance cover, but the policy providers would not mind.
Security
The main benefit of parcel insurance is the peace of mind it gives to the insured. You can be able to ship goods around without fear of losing them and the money involved by damage or theft. One important thing to have in mind is that parcel insurance does not stop goods from getting damaged. It rather covers for you, the value cost of the damaged goods or parcels.
Protection against mishap
We experience disasters many times as humans and unexpectedly too. Now, what do you do if disaster should come up when you least expected it and your goods are on the verge of destruction?
What parcel insurance does is not to stop the disaster from happening but rather to cover the cost of your damaged goods and products.
What does parcel insurance cover?
You are meant to know the list of risks that parcel or shipping insurance covers as much as you have known the benefits.
There are different types of parcel insurance with different functions. You can make choosing the finest insurer for yourself by simply researching the one that suits you.
Now to the risks that parcel insurance cover you from;
- Rejection risks
- Damage risks
- Stock damage
- Exhibition risks.
Rejection risks
Business people face a lot of risks in regards to shipping, one of such risks is rejection risk. Mostly in international shipments, the Government authorities may reject some goods simply because they did not meet some standard.
According to your policy, therefore, if rejection insurance is covered then your policy providers will pay for the rejected gods. Rejection simply means that the sent or shipped goods will not be paid for, then your policy saves you the heartbreak.
Damage risks.
In this case, when your shipment is damaged on transit, then your poliocy will cover the cost. It is important you know also that it may not really be that the goods are damaged before they are covered. When your goods are stolen or mistaken too, parcel insurance will cover the cost for you.
Stock damage.
There is a part of parcel insurance or a type of it that covers stock damage risk. When you have stored your goods for a long time in a stock house and unfortunately they are damaged.
Parcel insurance, in this case, will cover the cost of the damaged goods due to prolonged storage.
Parcel insurance companies
There are companies who do well in selling out shipment insurance to people who need them.
If you are interested in buying shipment insurance as a business owner or not, below are three good companies to consider getting your insurance from;
- PIP: The parcel insurance plan offers low rates and exceptional customer service. Customers are allowed to pay for claims in 7-10 business days. They also offer international coverage which has no country restrictions apart from Russia.
- Skyrocket: The skyrocket shipment insurance company offers you security for your parcels and the cost is dependent on the value of the shipment. The reimbursement value is for the total value of your damaged goods.
- Shipsurance: Shipsurance is a shipping insurance company that offers coverage for shipments sent through the major worldwide shipping carriers. Shippers of all sizes can save up to 90% on shipment cover when the policy is with shipsurance.
Cost of parcel insurance
The cost attached to shipment insurance on average is known, but it depends on the company you are getting your insurance cover from. The cost of shipment insurance also depends on the value of the goods that get damaged at the time. The more expensive the item to be shipped, the more or higher the cost of insurance.
Conclusion
Shipping insurance or parcel insurance is not too far from every other type of insurance. The insurance is there to help you if anything should go wrong during the shipping process of your goods or items. If the item you’re shipping gets lost, stolen or damaged while on transit, shipping insurance will help to protect what you spent on the shipment. And also to ensure that you receive enough funds to cover a replacement shipment. You can look further to companies that offer shipment insurance and determine which to buy from.
FAQs about parcel insurance
Is parcel insurance worth it
Yes. Your peace of mind is worth it per se. you can take your time to analyze why you really need to get an insurance cover for your shipments then answer the question of if parcel insurance is worth getting.
How does parcel insurance work
Parcel insurance simply means paying in advance for the damage that may happen to your shipments depending on the value. The cost of insurance is usually lower a bit than the actual value of the shipment.
What does parcel insurance cover
Parcel insurance covers the cost of your goods or any item on transit from you or to you in a case of loss, damage of theft among other events.
How do i get parcel insurance
The first step to getting parcel insurance is to understand what it means and all that it is about. Then you can proceed to analyse the value cost of your shipment and then the company you want to get your insurance from.
