“Better safe than sorry” is timeless advice for good reason. Here’s why real shipping insurance should be among your top New Year’s resolutions.
2020 will be the most competitive retail year ever for America and the world at large. E-commerce has made the world a global marketplace with over 627,000 new businesses set to start up this year in the U.S. alone. All this innovation means a record number of consumers will be comparing your business to your competitors before waiting by the mailbox to receive their goods.
Who will be delivering these goods? FedEx. UPS. DHL. USPS. These and other big shippers are about to face a very demanding 12 months, meaning the likelihood of parcel loss or damage will also see a sharp increase. Awareness of this increased risk to your shipments is where your 2020 shipping mindset must start.
Most carrier coverage isn’t real insurance
The goods your shipping department just handed over to the carrier are worth far more than their market value. Your reputation and future profits are going with them. This may be blind trust on your part, because you may have fallen victim to a common misunderstanding between coverage and actual insurance protection.
For example, FedEx offers no insurance whatsoever, but they’re willing to pay you back $100 if you can prove they’re liable of up to $1000 in extraordinary cases. This burden of proof scenario is a common concern with carriers and typically goes by the name of “declared value coverage.” It’s vital that shippers make no mistake here: Declared value coverage is not insurance.
UPS matches the $100 of coverage for liability on packages of undeclared value, rising to $50,000 of declared value. That may sound like a good deal but remember this only looks like insurance. Those thousands of dollars will only be yours if you fight to prove UPS was at fault and win. There’s an extra charge to even declare value, of course.
Pages 30 to 32 of the UPS Terms and Conditions for 2020 detail their liability coverage, so if they’re your carrier you should review those to really understand your level of coverage. Admittedly, UPS is a little better than FedEx because it does offer actual insurance through a licensed affiliate, UPS Capital.
However, we remind shippers that third-party package insurance is often the more cost-effective option. The 71lbs approach to shipping insurance is designed to beat those cookie-cutter templates and provide comprehensive coverage that suits the needs of businesses large and small.
The 71lbs shipping insurance solution
Any insurance agent will say you can’t put a price tag on a peace of mind. We can, so let’s get straight to how much we can save your business. Choosing 71lbs shipping insurance could save you between 25% and 45% compared to the rates offered by the big carriers.
It doesn’t matter if your package is small or large — the same big protection applies. Unlike some parcel insurance policies which only cover the item’s replacement cost, we cover the merchandise and your shipping costs. Our unconditional coverage is as easy to understand as it is to get, and we’ve made the claims process as painless as it can be.
Why waste 2020 worrying about carrier performance or whether you're even covered in the first place? You can start the New Year with the 71lbs team of shipping advocates on your side and join our thousands of customers who are now shipping with confidence. Connect with us at the link below to learn more about how we’ve got you covered.
At 71lbs, we focus on two things: a) helping customers save money on shipping and b) helping customers understand their shipping costs. We provide refunds and savings on shipping insurance, freight and imports, among other benefits. Our automated dashboard displays easy-to-understand shipping costs and insights so you can make better business decisions. Drop by the contact page to get in touch!
