For many online sellers, shipping insurance can seem like a waste of money. Until a package arrives damaged or gets lost... that's when you wonder why you didn't invest a little extra money in one.

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But when is it wise to get one, and when is the package insured by default?

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Where do you have to insure them and how do you have to make a claim if a package is damaged or not delivered?

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To answer all these questions and more, we've put together a guide to shipping insurance.

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Why is it worth having shipping insurance?

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You assume that your packages will be delivered to your customers in good condition. After all, you pay a shipping company a fee and usually everything goes smoothly.

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But carriers ship millions of packages every day, both domestic and international. That makes the risk of a package getting damaged or lost higher.

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And not only will you lose shipping costs and the value of the package contents, but you also have to pay for a replacement product and pay shipping costs again.

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When is shipping insurance the wisest choice?

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Shipping insurance is not always necessary. We suggest the following: insure items that you cannot afford to replace in case of damage or loss.

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This means that it is wise to insure packages whose value is high. Taking out shipping insurance is also the right choice when shipping internationally.

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After all, several parties will take care of your packages during the entire shipping process, which increases the likelihood of problems.

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Insured by default

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Additional insurance is not always necessary, as some shipping methods include insurance by default.

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Always check the terms and conditions of your shipping carriers before purchasing additional insurance.

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If there is no standard amount insured, you can purchase additional insurance independently.

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You may also choose to purchase additional insurance if the standard insurance is for a certain amount that does not cover the entire contents of your package.

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What should you pay attention to when sending insured packages?

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Insured shipments offer a lot of advantages. But there are things to look out for to fully benefit from it.

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We have compiled a list of the most important points for you:

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• Comply with the mandatory packing requirements to be eligible for compensation.
• Carefully check the value that can be claimed: if your shipment is underinsured, it's a waste of money.
• Pay attention to the excluded destinations to avoid having your claim rejected.
• Take note of the excluded products to avoid being insured for nothing.
• Be sure to keep the proof of delivery so that you can show it when claiming damages.

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How to make a claim?

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It is extremely annoying when a package is damaged or lost. But, if you have insured your shipment, you can file a claim with the carrier.

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To file a claim, you need the following:

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• Invoice of purchase
• Invoice of sale
• Photo of the inside of the package
• Photo of the outside of the package
• Photo of the damage to the product
• Proof that the package was damaged

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What happens if your shipment is lost?

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If your shipment spends more time on the road than expected, it may have been lost. Still, a delay doesn't always mean trouble.

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The carrier must be the first to declare the shipment officially lost. This often takes 10 days of waiting.

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In the meantime, the shipment can still be found and delivered. During that time, you can try to find out what has become of your order, but you cannot yet file a claim.

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You can initiate a claim for your lost package after those days of waiting.

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To do so, the following information is required:

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• Date of pickup or delivery to a service point
• Physical characteristics of the package (color of the box, color of the tape, dimensions and weight)Tracking code of the shipment.
• Pickup and delivery addresses.
• Detailed description of package contents.
• Sales and purchase invoices.
• Proof that your customer did not receive the package.

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You can send this information to the customer service department of the party you shipped with, or directly to the carrier.

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If your package had additional insurance and has been declared as lost, you will receive the value of the purchase including shipping costs.

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Damon Baca

Co-Founder

Crossborderit (CBIT)

www.crossborderit.com/IOSS