If you are among those who think that insuring the delivery of a package is an unnecessary expense, think again. During delivery, your package may be damaged or even lost. However, most of the time, the compensation offered by the transport service (if there is one), does not always correspond to the value of your goods. To protect yourself, it is best to take out insurance, regardless of the nature of your package and the distance involved. How does it work?
Why Is It Beneficial to Insure a Package?
In recent years, online businesses have become more and more popular. Indeed, thanks to the significant advance in technology, getting a product on sale in a foreign country is no longer a problem. Many sales sites offer the possibility to send their products outside the country. Orders and payments are made via the internet. Thanks to mobile applications, individuals can also sell objects and clothes they no longer use. The prices offered are more exciting and affordable.
In any case, the merchants always have to take care of the necessary steps to send the packages to the customers. As for the cost of delivery, it depends on the agreement between the two parties. However, buying a product abroad has one major drawback. Often packages are damaged during shipping, land at the wrong address, or are even stolen.
Although the most common recourse is to file a claim, the steps to follow are sometimes long and, unfortunately, futile. Apart from losing money for customers and the company, such a situation can harm your reputation and your business. The best way to remedy this is to take out additional insurance for shipping operations. However, not all packages need to be covered. Focus on those that are more valuable (which can be expensive to compensate for) and those that can’t be replaced. In addition, transport companies also include insurance by default in the service costs.
How Does It Work?
Although carriers claim to be responsible for the packages they transport, their liability is limited. Sometimes damage from natural events is not always covered. That’s why shippers have an interest in insuring the goods.
The insurance to be purchased depends mainly on the means of transport chosen and the value of the goods. In the case of land and rail transport, you can select between all-risk insurance (which covers all damages, even theft) and traditional insurance, which only covers the risks mentioned in the contract.
The insurance policy will also depend on the mode of shipment (scheduled, occasional, etc.). It is important to note that the insurance, regardless of the contract terms, only takes effect between the time of departure and arrival at the destination. The types of contracts are more or less the same in the case of transportation, except for the time frame of the guarantees. In the case of maritime transport, this can extend up to 60 days after delivery. On the other hand, in the case of air freight, the guarantee expires 15 days after delivery. To receive compensation for damage or loss of the package, you must also present:
- the purchase and sales invoice;
- documents containing all the steps of the shipping operation (date, departure and sending address, etc.);
- a document or photo describing the package;
- a photo showing the package in its damaged state.