A small shipping box can be used to transport a variety of items across the country, some of which may be valuable. While for the most part shipping carriers are extremely reliable, these small boxes are easier to lose track of than larger packages. Knowing those risks, you may be considering shipping insurance for your item. Some of the most important things you should consider before purchasing this insurance are outlined below.
Possible Automatic Coverage
First, it is important to note that your package might be automatically insured, so in these situations, purchasing coverage is not necessary. For example, domestic parcels sent through both UPS and FedEx are covered up to $100 against damage or loss. However, these carriers refer to this policy as declared value coverage rather than insurance, and if you want protection over $100, you’ll have to pay for it.
Filing a Claim
If you take out insurance on your package and it happens to be stolen, lost, or damaged, you will need to file a claim. In most cases, carriers won’t even realize that an error was made, so it is your responsibility to start the process. It is important to note that carriers have time requirements for filing a claim. FedEx requires claims to be filed within 60 days, while UPS allows for claims to be filed within nine months.
Once you file a claim, you’ll need to have proof or supporting documentation to back it up. Therefore, it is important to keep documentation regarding the goods at the original location and the destination, and taking photos of your item at each end can prove that it did not arrive in the same condition. Some instances may require an estimate on repair costs, as well.
It is important to note there is fine print when it comes to insuring your custom size shipping boxes. Most carriers will not cover the cost of shipped precious stones, cash, or coins, and they may not provide coverage to all shipping destinations. Additionally, some carriers may not cover packages if they aren’t packaged properly, so it is important to follow the company’s precise packing requirements.
Long Waiting Times
If you file a claim on your shipping insurance, you should expect to wait. UPS, for example, has a lost-package claim process that takes from 7-10 business days, and they will go through this process before they authorize your claim.