To insure or not to insure high value packages

[kirkland]

Been shipping out items in the 4-700$ range, and being the scaredy cat that I am, Ive been buying carrier insurance for each of them. Just in case they get lost in transit. It regularly tacks on an additional 7-10$ per parcel, and Im starting to wonder if its worth it. Using some basic back of the napkin calculations, and being conservative and assuming higher values/costs in each scenario: if each item I ship out is $700, and insurance regularly tacks on $10 an item, this means that insurance would only be worth it if I lose on average 1 out of every 70 items. Aka they get lost in transit or whatever.

However, while I dont exactly track the delivery of each item I sent, I cant honestly remember the last time any of my items got lost in transit, especially those of high value. The last one I recall explicitly was 2022, although Im sure there have been a few since then. These items that I HAVE lost, have all been smaller packages (8oz or so), which I imagine are more prone to getting lost than 10lb packages which dont exactly just 'disappear'.

Doing some more math now. Seems Im paying $700 in insurance to insure $49,000, which sounds like a large amount (and it is). But $700 is also alot, and coupled with the fact that Ground Advantage (my main shipping method) already packs in a built-in $100 worth of insurance, and the #s become even less appealing. Technically means that insurance would only be worth it if I lose 1 out of every 60 items with that in mind.

I cant imagine bix box retailers are typically insuring all their shipments. Do they? How do you guys decide whether to insure or not? Do you guys agree that it doesnt make sense in my scenario?

[SaiJin]

Depends on the profit margin and the cost of goods.

Instead of insurance I opt for signature in person only.

[kirkland]

Originally Posted by SaiJin

Depends on the profit margin and the cost of goods.

Instead of insurance I opt for signature in person only.

Is your rule of thumb the lower the profit margin the more likely to insure? Since it would be a bigger hit to you?

[agent006140]

USPS insurance is higher than UPIC .
USPS PRIORITY COMES with $100 insurance.
USPS ground advantage does not come with insurance
Is $700 your asking price of the item or your cost?
Fed Exp does not offer insurance,it offers indenmity,$100 for non jewelry and $1000 for jewelry (it may have revised,so do check),if you want insurance,you can take out with private insurer.
UPS does offer insurance as far as I know.
May be you can ship via Fed Exp or UPS,instead of USPS with no insurance.

[murdered_by_ebay]

insurance certainly makes sense but the first thing that matters whether you possess documentation that allows to receive insurance premium

postal services are not that keen to refund large amounts so they usually set requirements where you have to prove what is inside etc.

if you do not then insurance may not be a good solution

[agent006140]

if claim is damage,USPS would ask you to bring the content to the post office,if you file online,they need a picture.
Big box retailers have insurance policy and pay an annual premium,if there are claims,they will submit them each month,I think with low price items they wont even bother to file claim.

[rsot]

Originally Posted by murdered_by_ebay

postal services are not that keen to refund large amounts so they usually set requirements where you have to prove what is inside etc.

Very true - will need proof in the event of an issue - profit margin does play a role as well.

Big box retailers do have an annual policy that they pay with regards to claim but the profit margin is generally bigger on the higher end goods

[kirkland]

Originally Posted by agent006140

USPS insurance is higher than UPIC .
USPS PRIORITY COMES with $100 insurance.
USPS ground advantage does not come with insurance
Is $700 your asking price of the item or your cost?
Fed Exp does not offer insurance,it offers indenmity,$100 for non jewelry and $1000 for jewelry (it may have revised,so do check),if you want insurance,you can take out with private insurer.
UPS does offer insurance as far as I know.
May be you can ship via Fed Exp or UPS,instead of USPS with no insurance.

Ground Advantage does have insurance. https://faq.usps.com/s/article/USPS-Ground-Advantage

Never really considered using Fedex or UPS. Ground Advantage has been so amazing that it kind of eliminated the price discrepancy that used to exist for my items

[agent006140]

I mean you have to pay for insurance when you ship ground advantage.
You can take out a policy with annual premium ,if your claims record is low,the premium should be reasonable.

[kirkland]

Originally Posted by agent006140

I mean you have to pay for insurance when you ship ground advantage.
You can take out a policy with annual premium ,if your claims record is low,the premium should be reasonable.

Oh cool. Never thought of that, ill have to research it

[agent006140]

UPIC which is offered on Etsy is the one which underwrites insurance policy

[SaiJin]

Originally Posted by kirkland

Is your rule of thumb the lower the profit margin the more likely to insure? Since it would be a bigger hit to you?

I never insure, I go with signature confirmation for anything over 250$.

[aria7]

Originally Posted by SaiJin

I never insure, I go with signature confirmation for anything over 250$.

Signature confirmation is pretty much unnecessary on sub $750 sales on ebay.


In the instance OP has asked about, if the courier loses or damages the goods, then only insurance will help them out if the value is more than the included maximum offered by default, $100 for Ground advantage. A signed-for service achieves nothing.

[agent006140]

signature confirmation replaces tracking,so if buyer files INR,then it is proof.

[aria7]

Originally Posted by agent006140

signature confirmation replaces tracking,so if buyer files INR,then it is proof.

It's an alternative to tracking with delivery confirmation, it's not required for Seller Protection (< $750) in the event of a delivery dispute.



As I said above, it's irrelevant in the context of this thread.

[agent006140]

Saijin is in Japan,if he is shipping from Japan,signature would be required for registered and certified mail,it all comes down to what the seller prefers.
This forum is filled with BS and low quality content,whether it is relevant or not,I doubt too many of us care one way or the other,life goes on !

[agent006140]

you mean ground insurance comes with $100 insurance,thats good news.