Shipping insurance is a way that online retailers and their buyers can protect themselves against the ongoing problems of poor package handling, late deliveries, and package theft.
Available in many different forms, delivery protection insurance is an added cost to each shipment, but one that tends to save money in the long run.
How Claimant Is Reimbursed
Whether it is purchased by the seller while shipping a package, or by the buyer as opt-in delivery protection insurance, shipping insurance reimburses the claimant or fulfills specific requirements when a claim is made.
Whether a package is not received, is received late, or items in the box are damaged, either the recipient or the sender depending on who paid for the shipping insurance can make a claim for replacement or refund.
Who Reimburses?
Who accepts these claims and is ultimately responsible for these replacements or reimbursements depends on the type of shipping insurance used, and who paid for it.
Sellers who purchase package insurance through their carriers must usually make claims themselves, but in the case of third-party shipping insurance services, the buyer typically makes any claims, removing the seller from the equation.
Is 3rd-Party Shipping Insurance Services Better?
Carrier package insurance is a commonly recognized method for protecting shipments, but for many sellers, using a third-party insurance service may be more beneficial.
Third-party shipping protection insurance is that which is provided by a separate business from the seller with no seller involvement necessary other than to offer it on their shopping cart.
It is free to sellers and works by charging a small fee to the buyer, with the third-party provider becoming the point of contact regarding that shipment any problems occurring with it.
Saving Sellers Important Time
Buyers contact the third-party service if there is a problem with their delivery and the service takes care of it.
Depending on the shipping insurance offered that may include reimbursement of funds, sending a replacement item, or some other option.
Third-party delivery protection services save sellers time and money while providing focused customer support to buyers making claims.
Which Option Is Best?
Though both options can work equally well to protect both buyer and seller, third-party shipping insurance tends to be easier for everyone involved.
Working with a separate delivery protection insurance service relieves the seller from having to deal with these customer fulfillment issues while retaining all the trust that comes with good customer service.
Ecommerce sellers choosing to offer third-party shipping protection insurance and customers alike can rest assured that their packages are safe, one way or another.