How Much is Shipping Insurance?

The success of global trade depends on the effectiveness of the shipping industry. With the world annual shipping trade value of over US$14 trillion in 2019, businesses involved in the export and import of goods are looking for reliable and cost-effective shipping insurance solutions to get products delivered to the last miles without the undue stress of loss, damage, or theft. If you are concerned about the cost of shipping insurance, you should be aware of cost variables so that you could choose the best shipping insurance solution and focus more on growing your business.

How much does it cost to ship with insurance?

No matter how safe and secure your consignment is, package damages and loss are an unfortunate reality of the shipping industry. Some things aren’t in your control, so it is better to protect your consignment against possible damages, theft, or loss of package with a suitable shipping insurance solution. Despite several benefits shipping insurance companies like Secursus.com offer, unfortunately, traders avoid shipping insurance, because they think it is very costly. The little money you invest in insuring your package gives you peace of mind as you get the declared value of the package is lost or delivered damaged.

The cost of shipping insurance varies from carrier to carrier, the value of the shipped products, and the nature of the goods. Whether you are a causal shipper or business shipper, a suitable shipping insurance policy is an absolute must. Almost all reliable carriers and postal services, like UPS, FedEx, USPS, and third-party providers offer shipping insurance for a single shipment in the range of 1.5-4% of the package value. If you are looking for a more cost-efficient shipping insurance solution, you can opt for a third-party shipping insurance service provider as their business model makes it possible to offer you something more affordable.

If the value of your package is less than US$100, the insurance cost of UPS is zero. If the declared value of your package is above US$100 up to US$50, you have to pay US$1.05 for every additional US$100 value. However, there is an insurance minimum of US$2.70, meaning the value of your package should be above US$300 to qualify for UPS shipping insurance.

If you are looking for shipping insurance to cover all your deliveries during a certain period you can opt for more affordable blanket shipping insurance. Third-party shipping insurers offer flexible and highly competitive insurance rates, which depends on several factors, including:

• Reputation and branding of your shipping insurance coverage provider
• Reliability and track record of the shipping carrier
• Nature of the goods being shipped, whether electronics, medical-grade, consumables, or consumer durables

• Freight classification
• The commercial invoice value of the package
• Origin and destination ports
• Claim history track record of the shipper

The success of your business depends on how effectively you channelize your energy in important areas. Shipping insurance gives you much-needed peace of mind, as you get maximum protection against possible package loss or damage. Since it is all about making business more cost-efficient, you should better hire someone with knowledge and experience in handling shipping insurance.