Shipping Insurance: Who Do You Use?

by: iheartjacksparrow

I use Endicia to print my labels, and use their insurance. For the first time, I need to file a claim for a package that appears to have been stolen at the post office by one of the employees. My advice to a new seller, filing a claim for missing mail with the USPS is a waste of time since they don't search for anything.

by: Smallseller

During the height of the pandemic, I was using Pirate Ship more frequently. For First Class shipments, I often added insurance. It is $0.75 for $50 and then $0.80 per $100. For USPS Priority mail, I think I added extra insurance once or twice.

Using insurance depends on the value of the shipment and how much you actually paid for the item.

I had a claim with Canada Post for a lost package where insurance was included and I received a refund without too much difficulty. I do not think I have had a claim with USPS. I have had 2 missing packages with USPS and the missing mail and search has turned up nothing.

I still sometimes use Pirate Ship and add insurance. My 2 missing packages were small bubble mailers which may be susceptible to falling somewhere and getting lost.

I don't think that it is necessary to systematically insure every single package.  

by: DTSM

I use u-pic insurance for any order $300+ domestically or $50.00 internationally. Their rates are reasonable and when a claim is made they, most importantly, pay without a hassle. I have had good luck since the pandemic started where out of 1000's of parcels I ship not one claim needed to be made.  

by: john2561

I use since 3 years https://www.secursus.com/ insurance which is really good quality with a good price-quality ratio. It's fully automatic because my site is connected to their API solution.

by: TomH

I have insured in the past but no longer bother with my product make-up the last few years. Most items sell in the 12-25 dollar range. Meaning my cost is 2-4 dollars per item.  Insurance too much of a cost.  if it is lost, I just write it off and move on.

by: The End

I know from experience UPS will MURDER your stuff, especially if you put a FRAGILE sticker on the box.
No such problem with the Postal Service.

by: TomH

Re: UPS will MURDER your stuff

lol, totally agree. I never would  put a FRAGILE sticker on anything with any delivery service.  

by: Rexford

I will tell you who I don't use--Shipsurance.  I stopped using them. It's my opinion and my experience with them that they will do anything and everything to not pay a claim.  I'm not speaking for everyone--this was my experience.  I stopped using them years ago.

by: ebayout

I ship 99% Priority Mail. 99% of my shipments are under $100 value.
I get FREE insurance for under $100 value with Priority Mail.
Pretty much a no brainer.

by: smallstuff

I self insure - meaning I save the insurance cost and will bear the loss when it happens.  I've lost one package in over twenty five years of selling (internet and other eBay sales).  The lost package was to Brazil and I replaced it with a second shipment.  I no longer ship to Brazil.  My only regular Brazilian customer purchased a home in the US and he visits regularly.  Once or twice a year I waver with a new customer and a sale over 1,000 and insure 50%.

by: Eagle

We insure every shipment whether it's $25 or $2500+ in value. The last 3 yrs we have only had two claims and the packages were insured through USPS. We were paid on both, but one had an $800 claim that shipped to Spain and it took over 7 months to finally get paid. A real mess! We mix it up with either USPS, FedEx, or Shipstation varying on the shipping method the customer chooses. We pack everything very securable using a cotton filled gift box, then wrap the gift box with bubble wrap, and finally use popcorn to stabilize the already wrapped and boxed item tight in the shipping box. Definitely overkill, but they can't say we didn't secure the item enough to avoid damage. I did read above bad response of Shipstation and although most of the insurance we purchase is with them, we haven't had to file claim. A friend of mine has had to file quite a few claims with them though and said he's never had a problem and they paid very quickly, so guess it's like all the rest? Some ppl have problems and some don't?

by: Marty2020

come on FRAGILE sticker  'haters'. I have been using such stickers since they have been invented. In the past 3 years I had ONE package slightly damaged.

by: Marty2020

I have been using Pirateship. Had one claim in 2020 and one claim in 2019. Both to China, both around $150. Paid out promptly without any hassle. The only delay was by the buyer who needed to confirm a non-receipt online.

by: HardWorkingSeller

It amazes me that when I buy a $20 item on eBay the seller will proudly state that they bought insurance so I'm covered.

That just screams 'amateur with no quantitative analysis skills'.  Do they really think the actual loss rate makes that a good investment?

I've sent thousands of packages around the world and I can't recall ever having one go missing permanently.  I avoid the problem countries (including all of Latin America) and I label clearly.  Even damage is very rare if you pack carefully,  Maybe one case a year for me.

Delays are more common (but still rare statistically) and I always call eBay in the case of late delivery INRs and get an extension of the deadline for delivery.  IIRC they allow you up to three 10 day extensions for international delays.  Maybe more with Covid.  And that's always been enough for the item to finally get there.

Insurance is something that only makes business sense if the loss would wipe you out or cause you serious distress.  Instead just drop a quarter in a jar for each item you send, if that makes you feel better.  It won't be long before you can cheerfully handle any issues and probably have enough left over at the end of the year to buy yourself something nice.  

by: railady

RE: UPS - our DRIVERS are fabulous but the sorting facilities seem to have contests to see who can cause the most damage to packages. Best example: I bought fragile items online at a Texas auction which contracted with a UPS store to pack/ship (GREAT people). Package arrived at my NY home with one side crushed in completely, other side edges smashed and the top corner missing ( the hole large enough to put a man's arm into). I sent pictures to Texas, and the manager now uses them for employee training - how to pack to protect against damage like this !!

RE: "Fragile" stickers - I don't know if they are red flags in front of bulls, or just ignored. These couriers have an incentive to fight insurance claims; USPS does not.  

by: railady

@Hardworking - LOL, it's not a ''quarter'' saved, it is $2.05 ($50.01 - $100 coverage - the minimum you can BUY) and that sure adds up fast!

I also ''self insure.''  Having sent enough packages over the years without incident, I can afford to reimburse just about any customer if necessary. Also, since 1998 I have had fewer than 5 lost or impossibly damaged packages that I have shipped. Probably 3 of 5 courier deliveredpackages arrive with possibly destructive damage (fragile sticker or not!!)

Another thought, as we know, Priority Mail prices include insurance on up to $50 value. This coverage is not ''Free.'' They have built the costs of providing it into the charges we pay. There is a difference between ''Free'' and ''Included.'' One could argue that if insurance was separate, as it used to be, Priority Mail base charges could be lower, since USPS would not have to cover insurance costs.

I usually buy insurance or use signature required on items  $200 - $250 and definitely over $300, but I use USPS exclusively.  I like those ''extra'' USPS insurance stickers right there on top, and my postmaster friend has figured out a way to use them, thwarting the automation that insists insurance must be included in the label barcode.

And lastly - USPS will reimburse for EVERYTHING. My understanding is that some of these private companies reimburse for damage only, and do NOT reimburse for postage.

by: toyman

I agree with the thoughts on Shipsurance. I still use them for loss coverage (they are attached to my shipping service), but, for damage, I don't even TRY to claim. I'm sure they have an entire division dedicated to figuring out how NOT to pay a damage claim.

by: spooky

I have sold on eBay for 23 years and worked in the USPS for 30. Take note: never ever use postal insurance as they almost never pay and it is an insanely difficult process. When I do insure, I use Ship Cover. The one time I made a claim with Ship Cover they paid and it was fairly easy.

by: macsbaby

I have sold antique porcelain and glasses for the last 25 years. I used shipsurance for the past 13....it has changed carriers twice I believe. Anyhow...in 2019, I had a 3000$ lamp up and disappear....then 4 packages with covid went poof into thin air, and they cancelled me. There was even a claim they paid, then the package showed up and they wanted their money back......LOL. Luckily my customer told me before the insurance came a knocking. Bad run of luck, but I had probably 7 broken items in the 13 years with them, and they paid every one without issue for me. I wrap extremely well and still things would break(thankfully not much), but you can't fight disappearing packages. Anyhow, now I will pay my own way. At worst its a break even if I add it all up it is probably going to be a gain for me.

by: fusgeyer

We ship mostly through USPS Priority Mail although that will be changing shortly due to the high destruction rate of my packages. Priority Mail includes free insurance up to $99. There is no need for me to add additional insurance to that. Now, if the mail carriers would either get out of the vehicle to deliver a tube, or leave a card that tells the customer where to pick up the package, instead of using brute force to shove a 42" long tube containing artwork in to a mailbox, all would be well and I could stop filing weekly claims for damaged items. Looks like UPS will be getting my document and artwork business. It is getting very costly to replace the artwork.