Insurance

5 Shipping Protection Pitfalls and Limitations That You Should Know About!

August 8, 2022
4 mins

When shipping packages to customers, it’s important to take every precaution necessary to ensure that the items arrive unharmed. Shoppers are increasingly conscious of how their purchases are packaged and shipped, so businesses need to understand the importance of a package’s condition after it leaves their facility. If an order doesn’t reach the customer in perfect condition, they won’t shop with that business again. Fortunately, there are many affordable solutions available for shippers looking to protect packages while shipping them. Shipping protection services can provide an extra level of safety for your shipments and help you avoid costly claims if something should go wrong. After reading this article, you will have a better understanding of some common shipping protection pitfalls and limitations as well as tips on how to mitigate risk and stay protected when sending out packages during peak season or any other time of year—no matter what type you ship!

Package Loss and Shipment Claim Limitations

When it comes to shipping protection, it’s important to understand the limitations of each type of protection. For example, a parcel tracking service will track the shipment but won’t cover you if the shipment is lost. A priority service with insurance will guarantee that a shipment is delivered by a certain date but doesn’t guarantee the condition of the package. Likewise, some types of coverage are limited to certain types of items. For example, coverage for fragile items only applies if they’re being shipped in a corrugated fiberboard box. Some coverage types also have low maximum payment limits, so it’s important to understand what you’re covered for. Finally, some coverage types may have restrictions about who can file a claim. For instance, some policies don’t allow the recipient to file a claim if the package is delivered to the wrong address due to an error on the sender’s part. It’s important to read the terms of your policy to know what is and isn’t covered.

Limited Protection for Fragile Items

Fragile items are a big concern for shippers because most parcel carriers don’t offer protection for them. This is where shipping insurance for fragile items comes into play. This coverage type is ideal for breakable items such as pottery, vases, or crystal that can suffer damage during shipping. Unfortunately, some shipping protection providers don’t offer coverage for fragile items. Be sure to confirm the extent of your coverage before purchase. You can also request a free quote from multiple providers to see what’s available in your area.

Incorrectly Labeled Shipment

Many businesses wrongly assume that they’re covered against claims of an incorrectly labeled shipment. For example, if you accidentally mark a breakable item as breakable and it is damaged in transit. While this is a common misconception, coverage for incorrectly labeled shipments is rare. In fact, even shippers with the most comprehensive insurance plans don’t have coverage for this type of claim. It’s important to double-check your policy to verify the extent of your coverage before you ship.

Shipment Tracking Doesn’t Always Mean Safe Delivery

Some shippers assume that simply tracking a shipment means that it has been delivered. Unfortunately, this isn’t always the case. Many providers now offer services that track packages from origin to destination. While these types of tracking services can help you manage communications with a customer if a delivery is late, they won’t cover you against a claim. Be sure to check your insurance policy to see if the tracking service is actually covered. If not, you can add this protection if it is available.

Final Words: Stay Protected Regardless!

Shipping protection is important at any time of the year, but it’s especially critical to be protected during peak shipping seasons. During these times, more packages are in transit, which means more are at risk of being delayed or damaged. ShipAid provides the tools you need to deal with a claim in any situation. We can help you avoid paying costly fees or even losing a customer. For the best protection possible, there is no better policy than your own. Simply choosing a 3rd party insurance policy to take care of your customer so you don’t have to worry about it is not the best option. You’ll likely end up paying for coverage you don’t need and missing out on the protection that you do, while also frustrating your customers. ShipAid gives you the best of both worlds and allows you to manage every situation with ease. Book a demo with us and we can show you how.

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