Is there anything more frustrating than when an order arrives late or damaged? We don’t think so. Whether you’re the consumer or the business, shipping issues can lead to problems for all parties. To avoid the pitfalls of the shipping industry and to deliver the best possible customer experience, we recommend protecting yourself through shipping insurance.
Even if your order fulfillment process is like a well-oiled machine, all businesses encounter problems from time to time. Luckily, there’s one way you can prepare and protect your business from the unfortunate realities of the industry: shipping insurance also know are cargo insurance.
At ALIGNED, our goal is to protect your business’s shipping & receiving operations. We work with top insurance companies to find a policy that’s right for you.
Plus, with a dedicated ALIGNED advocate at your service, you have the convenience and responsiveness of a business insurance specialist!
What is shipping insurance and what does it cover?
Shipping insurance is a policy that protects products being shipped and can also include shipments like raw materials, parts etc. that are being received. Think of shipping insurance as a safety net that helps protect your business against a wide range of unforeseen circumstances. For example, your shipping insurance policy may offer protection against theft, damage, excessive delivery delays, lost packages, or improper handling. So if a parcel shipped by your company is mishandled and arrives on the customer’s doorstep damaged, you could be reimbursed for the declared value of the items in the parcel. It’s important to note that shipping insurance policies typically cover the shipment from the time it is shipped until it arrives at its destination, but specialized policies called stock throughput policies or cargo policies with stock throughput extensions can actually cover shipments that stop and are even stored in third party warehouses as part of their journey!
Is shipping insurance right for you?
If you’re wondering whether shipping insurance is right for you and your business, you’ve come to the right place. Shipping insurance may not be necessary for all businesses. However, if you ship (or receive) a high volume of goods each year (totalling $1 million or more annually) or shipments above $1,000 per shipment, then shipping insurance may be a wise decision for you and your business. The reality is that the more orders you ship, the greater the odds that something will go wrong. Similarly, if your business frequently ships high-value items, shipping insurance may also be sensible. For example, if a parcel or a shipment with various parcels is lost during shipping and it contains an item or items worth thousands or tens of thousands of dollars, it can have a significant impact on your business. Therefore, before investing in shipping insurance, we recommend assessing the average value of the packages or shipments being sent by your business as every shipping insurance comes with a deductible or speak to ALIGNED Advocate for more information as to whether shipping insurance is right for you.