When it comes to selecting the perfect shipping carrier for your business, there are several factors that need to be considered. The most important ones include affordability, delivery speed, and the reliability of the carrier.
With the increasing demand for efficient shipping solutions, USPS has emerged as a top contender in the market, having successfully delivered over 7.2 billion packages in 2022 alone.
What’s more, leading carriers like FedEx and UPS have also opted for USPS to handle last-mile delivery, owing to its proven efficiency and reliability. These facts make USPS a popular choice for businesses looking to streamline their shipping operations and enhance customer satisfaction.
When it comes to shipping, it is crucial to take into account the insurance aspect. Although most parcels reach their destination without any trouble, there are unfortunate incidents where packages don’t arrive or arrive in poor condition, making insurance coverage an excellent safety net.
Hence, it is advisable to consider purchasing shipping insurance to avoid any potential losses that may arise.
Why Do You Need Shipping Insurance?
The seamless delivery of packages is an essential aspect of providing a superior customer experience, and any unforeseen incidents, such as a misplaced or damaged item, must be dealt with immediately to ensure the customer’s satisfaction. Excellently handling these situations can have a positive impact on a business’s reputation, reviews, and the possibility of future orders.
However, it is equally crucial to recuperate some of the expenses incurred after such events. One way to do this is by utilizing shipping insurance, which proves to be a useful tool in such circumstances.
It is important to note that every carrier has its own set of policies, protocols, and procedures. By gaining a thorough understanding of these factors before procuring insurance, businesses can better prepare for any eventualities that may arise.
A great starting point would be to know the kind of insurance that comes with the package and what additional coverage may be required when shipping.
USPS Shipping Insurance Explained
The United States Postal Service (USPS) provides an option to safeguard your shipments with shipping insurance, which can cover losses up to $5,000. The cost of the insurance depends on the declared value of your package, and USPS services may already include insurance in their pricing, saving you the extra expense.
Priority Mail Express comes with built-in insurance that can cover up to $100, while priority mail shipments provide up to $50 in coverage.
If the value of your package goes beyond these limits, it is recommended to purchase additional insurance. You can find a comprehensive comparison guide for insurance options on the USPS website to help you make an informed decision.
Do I need Shipping Insurance?
International shipping can be a stressful experience, but fortunately, insurance options are available to provide peace of mind. For instance, Global Express Guaranteed Insurance is automatically included for some items sent overseas, and it can cover up to $100 in loss or damage. However, if the package’s value surpasses this amount, you can purchase up to $2,499 in extra insurance from USPS.
Moreover, Priority Express International insurance is another option offered by the carrier, which comes with up to $200 for merchandise at no cost if the contents go missing or are damaged. Nevertheless, certain countries may have restrictions on additional coverage.
If you want to take extra precautions, there are some additional safeguards you can choose from when buying insurance. These additional measures can provide added protection to your package and ensure that it reaches its intended destination safely.
Signature confirmation
By enabling signature confirmation, you can conveniently monitor the delivery status of your item and be notified of any delivery attempts. This delivery option is offered by USPS and can be obtained either electronically or by email upon your request. It provides an added layer of security and peace of mind for both the sender and the receiver, ensuring that the intended recipient receives their item safely and promptly.
Cash on Delivery:
When it comes to shipping packages, choosing the right payment option can make all the difference. One option is Collect on Delivery (COD), which lets customers pay for their package upon receipt.
With COD, you can also enjoy additional insurance coverage of up to $1,000, based on the amount collected or the selected insurance coverage (whichever is higher). This can provide peace of mind and added protection for your valuable goods during transit.
Return Receipt
The feature of obtaining a proof of delivery through a return receipt is a valuable option for ensuring that the intended recipient has received the item. This service provides either an electronic or physical record of the delivery, which includes the signature of the recipient, thereby offering a higher level of assurance and accountability.
The pricing for USPS services may not always include insurance, specifically for packages shipped through first-class mail, media mail, and parcel select. It is important to note that even when insurance is included, there may be restrictions on what is covered.
What does the shipping insurance cover?
Protecting the shipment of goods from potential damages or losses during transit is essential for any business involved in shipping operations. Shipping insurance is designed to provide coverage for physical damage or loss of goods transported from one location to another.
The safety of packages during shipping is crucial to ensuring that the contents arrive at their destination intact. Unfortunately, several factors can lead to losses and damage to packages.
- For instance, damage to the package’s contents
- Theft or robbery during shipping, and
- Natural disasters such as earthquakes and hurricanes can cause significant losses.
Human error is also a possibility, and employees could accidentally damage an item while handling it during shipping. Furthermore, bad weather conditions, including heavy snowstorms, can cause delays and affect the condition of packages during transit. Therefore, it’s essential to take necessary precautions and work with trusted shipping companies to minimize these risks.
USPS Insurance Costs
| Value | USPS Insurance cost |
| Up to $50.00 | $1.65 |
| Between $50.01 to $100.00 | $2.05 |
| Between $100.01 to $200.00 | $2.45 |
| Between $200.01 to $300.00 | $4.60 |
| Additional $100 value (valued over $300 up to $5,000) | $4.60 + $.90 per $100 increase |
Can you file a claim with the USPS without insurance?
In case your mail package is not insured, it’s important to keep in mind that submitting a claim won’t be much help unless you’ve conducted a thorough Missing Mail Search. It’s important to retain the receipt, as it will serve as proof of insurance in case of any mishaps.
Additionally, the tracking number can aid the Post Office in verifying the insurance details. Therefore, it’s advisable to always ensure that your mail package is insured to avoid any unforeseen circumstances.