What Does FedEx Insurance Cover?
When choosing a company to ship with, people often have a problem breaking down which company has the best insurance. It can be hard to differentiate the company’s plans and policies, and which one will benefit them the most.
You have to think about cost, and how dependable a company will be before you choose them. This can be said for someone who wants one package delivered or a small business shipping out orders to customers.
You never know what can happen to packages when they are being shipped out because mistakes happen. This is why companies have insurance plans so they can make sure you recover your losses.
In this article, we will break down what fedex insurance is, what its declared value is, how much it is going to cost and how to insure your package. There is a lot to unpack here so let’s get started.
What Is Shipping Insurance?
Shipping insurance is often purchased by companies to help protect their product from damages, and theft. These companies want to cover their losses so they do not lose money for the goods they created.
There are different insurance policies that have been used or created over time, but people tend to choose the one they found dependable. It often referred back to what they were shipping and how expensive it was. Now there are different ways to ensure your product is safe from damages or theft.
FedEx now doesn’t exactly deal with insurance, but they use declared value. There will be more detail on this term later but FedEx has a liability limit of $100 for lost or damaged packages. If you declared the value of your product to be $100 or less you won’t be charged any additional fees.
You can increase your liability claims if you have a product that is worth more but you have to make sure that a FedEx employee has to do the packing of the product. If not, FedEx has the right to deny your claim and blame you for poor packaging practices.
When looking at other shipping insurance options it is important to look at how fast they process claims and if it’s easy to track shipments. Some insurance options offer higher coverage per package allowing you the freedom to ship more expensive items.
Do You Understand Declared Value?
Instead of the usual shipping insurance, you may be used to, FedEx uses declared value. Declared value is the maximum amount of money the company will pay if your product is damaged or missing during the shipping process.
With fedex insurance if you claim your product to be $100 or less you will not have to pay any additional fee and be reimbursed the $100 if something goes wrong. If your product is not $100 they will reimburse you for however much the value of your item is. For example, if your item is only worth $50 they will only pay you that much.
With that being said there are some limitations when it comes to how much they will reimburse and what products they reimburse for. There is a list of items they only reimburse up to $1,000 if something gets damaged or lost in transit.
Some of the items include collector’s items, furs, artwork, precious metals, jewelry, antiques, photographs, and glassware. This is not all the items on the list, if you want you can visit their website to get a full breakdown of the products.
When a package is delivered and you have a declared value on that item it is also required to be a signature upon delivery. This is only requested if the item is more than $500.
What Is the Cost?
The insurance on shipping with FedEx depends on the items you are shipping and the way you choose to ship. There is FedEx Same Day and SameDay City, then there is U.S Express package service, U.S Ground service, and International Ground service.
When shipping expensive items it is best to ship them separately to achieve full coverage. When you break it down you can get $300 of coverage for $3, and an extra $100 of coverage for an additional $1. If you need $2,000 worth of coverage it is going to cost you $20.
It is important to know how much your items are estimated to be worth before shipping your products. If there is a chance of your product getting damaged or lost during transit, you want to make sure you get your money back.
It is also important to know that fedex insurance is not your only option to protect your products during transit. There are alternative options that can protect your products that are more expensive. There are companies that can cover items up to $150,000 when shipping to more than 182 countries.
How To Insure and Make a Claim
If you choose to insure your product during transit, it is fairly simple to do. When you are packaging and shipping your product at a FedEx location there will be clear instructions on how to do so.
There is a declared value section that you need to fill out. Make sure you know the worth of your product before shipping it out, so you can get your money back. If you do not know it is okay to make an estimated guess but make sure it is close to the actual number.
Items that are not over $100 are automatically insured by the company so you have nothing to worry about. When making a claim after your package is damaged or has gone missing there are a couple more steps to do.
Once you file a claim online make sure to get your case number and check your email for updates. Also, make sure you have documentation of your proof of value to make sure the items you claimed to be a specific price are right.
Fully understanding how fedex insurance works will be beneficial to you and how you ship your packages. It will give you peace of mind knowing that your product is protected and insured in case of emergency.
In this article hopefully, you know what shipping insurance is and why it is important. What is the meaning of declared value and how to use it to its fullest capabilities? Also, what is it going to cost to insure my products, to make sure you get reimbursed?
It is important to know all your options when finding the right insurance during the shipping process. Is fedex insurance right for you or will you find another option to take care of your belongings?