Shipping mishaps are the plot twists no e-commerce business gets excited over, but they do happen. A damaged package, a lost one, or one that just goes MIA can quickly turn customer delight into frustration.
This is where FedEx shipping insurance can come in handy, acting as a financial safety guard for your valuable shipments and customer experience.
But is it worth it? How much does it cover? And most importantly, how do you navigate the claims process without pulling out your hair?
If these questions are keeping you up at night, get ready to wake up fresh tomorrow, because here we give you the complete rundown on FedEx shipping insurance.
Understanding Shipping Insurance
Shipping insurance is a financial coverage that e-commerce businesses can opt for when shipping their packages with carriers. It can help recover any financial losses stemming from lost or damaged packages.
It is essentially a contract between the e-commerce business and the insurer (which can be the carrier, third-party insurance provider, or insurance software), where the latter provides financial protection against any loss incurred due to damage to the package, including losing it altogether during transit.
It’s important to note that the benefits of shipping insurance go beyond financially protecting your packages. You see, it also helps you facilitate a positive post-purchase experience. If you’re able to gain compensation for your lost and damaged packages that might’ve compromised your customer experience, you’re better placed to meet the financial demands of shipping a replacement or offering a refund to your customer for shoddy delivery.
FedEx Shipping Insurance Options
FedEx offers several shipping insurance options to safeguard your valuable shipments. Here’s a quick breakdown:
- FedEx Same Day & Same Day City: Covers up to $2,000 in declared value for urgent deliveries.
- U.S. Express, U.S. Ground, and International Ground Services: Flexible coverage with declared value protection for domestic and international shipments.
- U.S. Express Freight Services: Insurance costs are based on either weight or value, whichever is greater.
Since insurance covers the entire package, not individual items, trying to ship all your packages (in case of multiple deliveries to a single customer) can help maximise protection while keeping insurance costs at bay.
How to Purchase FedEx Shipping Insurance
Purchasing FedEx shipping insurance doesn’t have to be a maze if you have a clear roadmap in front of you. And guess what—you do! Here are the steps to take when purchasing FedEx shipping insurance:
Step1
When handing over your package to FedEx, you’ll likely be completing a form detailing the weight and contents of the package, customer address, etc. You also need to fill out the value section of the shipping form.
Step2
Now, if your package has items that are worth more than $100, extra insurance will be required.
Step3
Be sure to follow FedEx’s packaging guidelines to avoid denial of claims. You see, optimized packaging is key to protecting your shipments. In case shoddy packaging is found to be the culprit for lost or damaged packages, your claim might be denied.
Step4
Lastly, furnish FedEx with any other details they might need as part of the shipping insurance documentation.
And that’s it. Follow the steps above to ensure your FedEx packages are delivered hassle-free.
Coverage Limits and Exclusions
It’s important to understand what FedEx shipping insurance covers to ascertain whether it’s the right choice for you. So, to help you with this decision, here’s a look at what you can insure your FedEx package against:
- Damage
- Loss
- Mis-Delivery
- Late Delivery
- Non-Delivery
- Any misinformation related to your package
Now, let’s take a look at the scenarios in which you won’t be able to claim FedEx shipping insurance:
- Damages or loss of shipments containing prohibited items such as alcohol, hazardous materials, live animals, etc.
- Damages to a package due to faulty or inadequate packaging.
- Delivery delays are caused by factors that are beyond the control of FedEx, such as extreme weather conditions.
Claims Process for Damaged or Lost Shipments
Even if you opt for FedEx shipping insurance, a little part of you will always want to never have to file a claim. After all, smooth deliveries mean happier customers, which means repeat purchases and business growth.
But alas, every once in a while, no matter how well you package your shipments, you will have to file a claim. When that happens, here’s what to do:
Collect All Your Shipping Details
Gather all the relevant documents and details related to your package and the loss or damage incurred. This includes the shipping label, tracking number, evidence of damage, proof of value such as receipts, appraisals, invoices, etc.
Submit a Claim
To submit a FedEx insurance claim, navigate to FedEx’s website, log in to your account, and complete the online claim form. Typically, you’ll require the following to file a successful claim:
- Tracking number of the package
- Proof of the package’s value
- Pictures of the damaged packages shared by the customer
- Payment proof
- An expense statement
Facilitate Inspection If Required
FedEx might want to investigate your claim further, in which case, they will notify you of the same. Be sure to retain the shipment’s documents, pictures, etc., to help support the investigation.
Receive Compensation
FedEx can take about a week to resolve your claim request. However, it can take longer if it warrants additional investigation.
Cost of FedEx Shipping Insurance
The cost of your FedEx shipping insurance depends on the insurance you choose:
FedEx Same Day & Same Day City
Allows a maximum declared value of $2,000. For shipments valued up to $300, an additional fee of $3 applies. For values exceeding $300, a charge of $1.25 per $100 is incurred.
U.S. Express, U.S. Ground, and International Ground Services
Shipments valued up to $300 incur an additional charge of $3.90. Beyond this limit, the cost is $1 per $100 of declared value.
U.S. Express Freight Services:
Charges are calculated based on $1.40 for shipments valued up to $100 or $1.00 per pound, whichever is higher.
Benefits of Using Shipping Insurance
Here are some advantages of using shipping insurance:
Facilitates Cost Savings
As many as 620 million packages get lost every year. The cost ultimately gets borne by e-commerce businesses, not just in terms of the cost of re-shipping orders but also in terms of a compromised customer experience and lost repeat sales due to a poor post-purchase experience.
With shipping insurance, you can rectify this by gaining compensation that can be used to facilitate re-shipping and even offer discounts/offers that incentivize your customers to return.
Helps Protect Big Ticket Packages
Shipping insurance helps you ship big-ticket purchases such as jewelry, electronics, antiques, etc., without having to cross your heart and hope they make it to your customers unharmed and in perfect condition. A nominal amount at the beginning can safeguard you against hundreds if not thousands, you would have to pay later.
Provides Peace of Mind
Perhaps the most important of all the benefits is the fact that opting for shipping insurance helps you ship your packages without having to worry. Knowing your package is financially secure should it suffer damage or loss, allows you to focus on your core business operations better.
Conclusion
Shipping insurance isn’t just a safety net—it’s a smart business move. Whether you’re shipping high-value products or just want peace of mind, FedEx Shipping Insurance offers solid protection.
But let’s be real: Dealing with claims and fine print can be a headache. That’s where LateShipment.com’s Shipping Protection and Insurance software saves the day. With automated claims, proactive loss prevention, and seamless coverage, we make sure you get paid faster and with less hassle.
Because running an e-commerce business is tough enough, your shipping insurance shouldn’t be. Ready to protect your shipments the smart way? Supercharge your shipping insurance with LateShipment.com’s shipping audit software.
FAQs about Fedex Shipping Insurance
What is the maximum declared value for FedEx shipments?
The maximum declared value for select businesses is up to $100,000 per domestic shipment and a maximum of $25,000 on shipments delivered to select international destinations.
Is FedEx shipping insurance worth it?
FedEx shipping insurance has notable benefits, such as facilitating cost savings, driving customer satisfaction, helping protect big-ticket packages, providing peace of mind, offering financial security, and mitigating unforeseen risks.
How can I streamline my shipping insurance?
You can streamline and optimize your shipping insurance processes by integrating LateShipment.com’s Shipping Protection and Insurance software. With automated claims, proactive loss prevention, and seamless coverage, LateShipment.com make sure you get paid faster and with less hassle. Can we add one more FAQ to promote our shipping insurance over that of FedEx?
