The Essential Guide to International Shipping Insurance

As a savvy international shopper, getting your favourite merchandise on time is the highest priority for you. However, how do you compensate for your losses if a product goes missing during the shipment process? Or what countermeasures do you have in place to deal with your losses if you receive a damaged product? Particularly when you order products from overseas, having an international shipping insurance policy in place makes sense. As a new shopper with limited options available online, a shipping insurance policy financially secures your shopping experience.

In this guide, we have comprehensively discussed what are shipping insurance policies, what they cover, and their exclusions. Read on to learn the benefits of these policies for shoppers who can’t resist the international market. Otherthan commercial shipping insurance, you can also get a better understanding of payment methods while doing cross-border shopping with our international payment methods guide.

What are Shipping Insurance Policies?

An overseas shipping insurance policy is designed to cover the loss or damage of goods while they are in transit. The coverage applies to damage to products during different modes of transportation, including air, sea, and land. As an online customer, shipping high-value items internationally can be doubtful, but with an insured shipping method, you enjoy a safety cushion against unpredictable risks during the shipment process. To be precise, overseas shipping insurance ensures you the convenience of financial compensation if the shipment is lost, damaged, or stolen.

As an online shopper, you need to pay a premium for international shipping insurance to ensure that you can recover the value of your products in case of an unfortunate incident.

Although high-value shipping insurance is optional for shoppers, it’s highly recommended that they remain insured. This way, they can receive financial reimbursement in case their products are damaged, lost, or stolen.

Importance of E-commerce Shipping Insurance

At Ubuy, we invest in e-commerce shipping insurance as part of our strategy to secure our business financially against potential mishaps during shipment. By providing insured international shipping, we prioritise our customers, offering them peace of mind, satisfaction, less paperwork, and so much more. Here are the key benefits of an e-commerce shipping insurance policy.

1. Protection against Financial Losses

With a shipping insurance policy in place, you will get compensated for the value of goods lost or damaged during transit. It’s one of the best benefits of international shipping insurance that prevents significant financial setbacks for online shoppers, particularly when you shop for high-value items. Unless you remain secure with one of these policies, the cost of replacement can be substantial.

2. Strengthened Customer Trust and Happiness

E-commerce brands that offer shipping insurance to their customers can demonstrate their commitment to the safe delivery of products. This amounts to greater customer satisfaction for eCommerce brands as buyers feel more secure knowing their purchases are protected.

3. Reduced Rrisk for International Shipments

International shipping involves various risks. From natural disasters to customs issues, e-commerce shipping insurance addresses a wide range of perils. Reputed insurers offer tailored coverage to global eCommerce companies based on the nature of risks.

4. Coverage for High-Value Items

It’s logical to cover high-value items like luxury goods or electronics while you ship them. High-value shipping insurance policies ensure that these products are adequately protected against potential loss or damage during transit. If you want to know how to get your high-value items quickly to doorsteps, you can go through our International Express Shipping guide. It would be beneficial in your international shopping journey.

Peace of Mind

As an eCommerce brand owner, you value the peace of mind that comes from knowing that your shipments are insured. Whether you’re an established brand or a new business, investing in international shipping insurance reduces stress and uncertainty.

What Does Shipping Insurance Cover?

Typically, international shipping insurance covers a wide range of incidents while the products are in transit. These include.

• Loss of products: If a package goes missing during transportation, the insurance will cover the cost of the item.
• Damage: In case your products sustain damage during the shipment due to mishandling, accidents, or other factors, the insurance will cover the cost of replacement or repairs.
• Theft: A package might be stolen or misplaced during transit. The insurer will compensate for the loss in such conditions.
• Natural disasters: Insurance providers also cover losses inflicted on your products due to natural disasters like floods, storms, or earthquakes that affect the transportation of goods.

What Is Not Covered By International Shipping Insurance?

As a responsible shopper, you must note that commercial shipping insurance doesn’t cover the following.

• Damage caused due to leaking contents in the parcel
• Loss due to wear and tear of the shipment, resulting in loss of volume or weight
• Expense, damage, or loss caused due to improper packaging of the product
• Damage or loss caused due to the deliberate misconduct of the customer

Different Types of Shipping Insurance

Shipping insurance comes in various forms, depending on the value of the goods and the nature of the shipment. Understanding the different types can help you choose the right policy for your needs.

Carrier-Provided Insurance

Many shipping carriers offer insurance as part of their services. This is often a convenient option for eCommerce businesses. However, such policies may not provide comprehensive coverage, particularly for high-value items.

Third-Party Shipping Insurance

Independent companies specialising in shipping insurance provide third-party insurance policies. It provides more extensive options for coverage compared to carrier-provided insurance.

All-Risk Coverage

This is the most comprehensive type of shipping insurance. These international shipping insurance policies cover all types of risks related to physical loss or damage of the items. However, it’s important to check the exclusions of the policy before investing in one.

Named Perils Coverage

Named perils insurance policies only cover risks that are explicitly listed in the policy. While these insurance schemes are more affordable, they don’t cover all potential risks.

What Points Customers Should Consider Choosing Cross-Border Platform?

Here’s what online shoppers can consider while doing cross-border shopping.

Value of Goods

While shopping for valuable items online, consider the fact that they offer high-value shipping insurance. Otherwise, in case of uncertainty, you may have to bear a huge loss.

Destination

While doing international shipping, consider the destination while choosing to shop, and check out the platform’s insurance policy for that certain region. It would allow you peace of mind with your order’s safe delivery.

Cost

Another point you must consider is the value of the international shipping insurance policy. If they are charging too much compared to others who provide the same services, you can reconsider. Compare the cost and benefits to determine the value for money you get while deciding where to shop.

Cost

Before investing in an international shipping insurance policy, compare the cost of premiums charged by different companies. Compare the cost and benefits to determine the value for money you get while deciding the policy.

Wrapping Up

With the global e-commerce boom, international shipping insurance has emerged as an indispensable tool for global shoppers. Whether you’re ordering products for yourself from around the world or sending valuable items to a loved one, shipping insurance provides essential protection against the risks associated with transportation.

Choosing a platform with quality international shipping insurance not only protects your financial interests but also provides peace of mind. If you prioritise shopping convenience, always consider shopping from a reliable platform with quality international shipping insurance.

Frequently Asked Questions