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Purchasing Shipping Insurance

Shipping insurance protects your valuable packages against loss, damage, or theft during transit. SimpliSent makes it easy to add appropriate insurance coverage to any shipment.

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Understanding Shipping Insurance

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What Insurance Covers

Shipping insurance typically covers:

• Lost Packages: Packages that never reach their destination
• Damaged Items: Items damaged during transit
• Stolen Packages: Packages stolen after delivery
• Delayed Delivery: Some policies cover time-sensitive shipments

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What’s NOT Covered

Insurance generally excludes:

• Improper Packaging: Damage due to inadequate packaging
• Prohibited Items: Items restricted by carrier policies
• Perishable Goods: Items with expiration dates

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Types of Insurance Available

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Carrier Insurance

Each carrier includes basic coverage: USPS

• Free coverage up to $50-$100 (varies by service)
• Additional coverage available up to $5,000
• Claims handled directly through USPS

UPS

• Free coverage up to $100
• Additional coverage available up to $50,000
• Automatic liability for declared value

FedEx

• Free coverage up to $100
• Additional coverage available up to $50,000
• Enhanced liability options for high-value items

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Third-Party Insurance

Alternative insurance providers may offer:

• Lower Rates: Sometimes more competitive pricing
• Higher Limits: Coverage beyond carrier limits
• Faster Claims: Streamlined claims processing
• Broader Coverage: May cover items carriers exclude

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Adding Insurance to Your Shipment

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During Label Creation

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Step 1: Declare Package Value

When creating your shipping label:

1. Navigate to the Package Information section
2. Enter the Package Value field
3. Input the total value of items in the package
4. This value determines available insurance options

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Step 2: Select Insurance Coverage

In the Services section:

1. View Included Coverage (usually $50-$100)
2. Select Additional Insurance if needed
3. Choose coverage amount up to declared value
4. Review insurance cost (typically $1-3 per$100 of coverage)

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Step 3: Compare Options

SimpliSent may show multiple insurance options:

• Carrier Insurance: Direct coverage from USPS/UPS/FedEx
• Third-Party Options: Alternative insurance providers
• Cost Comparison: Side-by-side pricing

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For High-Value Items

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Specialized Coverage

For items over $1,000:

1. Verify Carrier Limits: Some carriers have maximum coverage
2. Consider Third-Party: May offer better rates for high values
3. Multiple Packages: Split valuable shipments across packages
4. Signature Required: Add signature confirmation

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Documentation Requirements

High-value shipments may require:

• Purchase Receipts: Proof of item value
• Serial Numbers: For electronics and equipment
• Appraisals: For jewelry, art, or collectibles
• Photos: Documentation of item condition

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Insurance Cost Calculation

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Typical Rates

Insurance costs are usually calculated as:

• Base Rate: Often included up to $100
• Additional Coverage: $1-3 per$100 of declared value
• Minimum Fees: Some carriers have minimum insurance fees

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Cost Examples

For a $500 package:

• Included: $100 coverage (free)
• Additional: $400 coverage at$1.20 per $100 =$4.80
• Total Insurance Cost: $4.80

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Rate Comparison

SimpliSent automatically compares:

• Carrier Rates: Direct insurance from shipping carriers
• Third-Party Rates: Alternative insurance providers
• Best Value: Recommended option highlighted

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International Shipping Insurance

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Special Considerations

International shipments have unique requirements:

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Customs Declarations

• Accurate Values: Must match customs forms
• Currency Conversion: Declared in USD
• Restricted Items: Some items cannot be insured internationally

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Country Restrictions

• Coverage Limits: Vary by destination country
• Claim Procedures: May require local forms
• Processing Time: International claims take longer

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Filing Insurance Claims

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When to File a Claim

File an insurance claim when:

• Package Not Delivered: After carrier’s investigation period
• Damaged Package: Visible damage upon delivery
• Missing Items: Contents missing from delivered package
• Delayed Delivery: For time-sensitive shipments (if covered)

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Claim Process

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Step 1: Report to Carrier

1. Track Package: Check final delivery status
2. Contact Carrier: Report loss or damage immediately
3. Case Number: Obtain tracking/case number for reference
4. Evidence: Take photos of damaged package/contents

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Step 2: Gather Documentation

Required documents typically include:

• Shipping Receipt: Proof of insurance purchase
• Tracking Information: Complete delivery history
• Proof of Value: Receipts, invoices, or appraisals
• Damage Photos: Clear images of damage

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Step 3: Submit Claim

Through SimpliSent:

1. Access Claims Management in your dashboard
2. Upload required documentation
3. Complete claim form with details
4. Submit for review and processing

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Claim Timeline

• Acknowledgment: 1-2 business days
• Investigation: 5-10 business days
• Resolution: 10-30 business days
• Payment: 5-10 business days after approval

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Best Practices

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Package Properly

Insurance requires proper packaging:

• Appropriate Box Size: Not too large or small
• Adequate Cushioning: Bubble wrap, packing peanuts
• Secure Sealing: Quality tape and proper closure
• Fragile Labeling: Clear marking for delicate items

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Documentation

Keep detailed records:

• Shipping Receipts: Proof of insurance purchase
• Item Photos: Condition before shipping
• Packaging Photos: How items were packed
• Value Documentation: Receipts or appraisals

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Cost-Saving Tips

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Risk Assessment

Consider insurance for:

• High-Value Items: Over $100-200 value
• Fragile Items: Glass, electronics, artwork
• Irreplaceable Items: One-of-a-kind or sentimental items
• Business Shipments: Customer orders and inventory

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Alternatives to Insurance

For lower-value items:

• Self-Insurance: Set aside money for occasional losses
• Business Insurance: May cover shipping losses
• Packaging Quality: Invest in better packaging instead
• Faster Shipping: Reduce time in transit

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Troubleshooting

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Common Issues

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Insurance Not Available

• Prohibited Items: Some items cannot be insured
• Destination Restrictions: Limited coverage to certain areas
• Value Limits: Exceeds maximum coverage amount

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Claim Denials

Common reasons for denial:

• Improper Packaging: Did not meet carrier standards
• Missing Documentation: Incomplete claim paperwork
• Pre-existing Damage: Item was damaged before shipping
• Late Filing: Claim filed after deadline

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Protecting your shipments with appropriate insurance gives you peace of mind and protects your business from unexpected losses.