Taylor’s Tip #9, “Don’t buy parcel insurance from your carrier; save 50% with third party insurance.”
UPS, FedEx, and DHL all offer various forms of insurance if your package is lost or damaged. With these carriers a shipment is automatically protected up to $100 for loss or damage, but if you require more protection than you need to declare a higher value for protection. FedEx and UPS call it “Declared Value”. DHL calls theirs “Shipment Value Protection. The US Post Office offers insurance as well.
The formula works pretty much the same even though the rates are different if you have a retail or commercial account.
For example, UPS charges $0.90 for each $100.00 (or portion of $100.00) of the total value declared, with a minimum charge of $1.80. If you had a package that was worth $500, you would subtract the $100 that is included and have $400 or 4 units x $0.90 for a cost of $3.60.
If you did 10 packages a month, you would be paying $36 just for insurance!
Now here is a secret that many eBay sellers and online merchants don’t know. There are third party insurance companies that will insure your packages for 50% less than the carriers charge.
I had the opportunity to video Walt Moscoso, Director of Sales for U-PIC Insurance services at the National Conference on Operations and Fulfillment.
U-PIC offers discounted package insurance for packages shipped via major carriers such as UPS, U.S. Postal Service, FedEx, DHL, etc. The package is shipped by the carrier but insured by U-PIC, saving you hundreds, perhaps thousands of dollars every year. You will save 60-80% on your insurance costs. There are no minimum requirements.