Shipping your goods can be somewhat stressful as you’re often worried if the cargo will arrive in one piece. Many get insurance for their shipments, mainly if their packages include high-end items.
Insurance gives you peace of mind, knowing that your valuables are protected. So, if you’re considering insuring your upcoming shipment, you’re making the right decision. But what type of insurance should you get?
There are different sorts of insurance you can look into. Today, we will explore third-party shipping insurance and all the benefits you can enjoy if you choose this type of cargo insurance. So, keep reading to learn more and see if this is the right choice.
What Is Third-Party Shipping Insurance?
When you work with a shipping company, you typically offer some insurance to cover your goods in case of damage or loss. That’s where companies like Unival Logistics come into play with third-party shipping insurance. What does that mean?
Third-party shipping insurance is a type of insurance you can purchase to supplement your freight company’s coverage. It can give you added peace of mind knowing that your goods are fully protected in case of damage or loss. Let’s look at some of the considerable benefits you can look forward to if you choose this type of insurance.
The Benefits of Third-Party Insurance
1. It Is Cheaper than Carrier Insurance – Lower Insurance Rates
A massive benefit of third-party shipping insurance is that it is often much cheaper than the insurance offered by freight companies. There are a few reasons behind this.
- For one, carriers often have higher base rates for their insurance plans.
- In addition, third-party insurers may offer discounts for insuring multiple shipments, whereas carriers typically do not.
- Finally, third-party insurers often have lower overhead costs than carriers, which allows them to pass on savings to their customers.
When purchasing shipping insurance, it’s crucial to compare rates from multiple carriers and third-party insurers. Doing so will ensure you get the best possible rate for your needs, and you can save money.
2. It Is Convenient – Easy to Add Shipping Insurance to Your Shipment
Another benefit of third-party shipping insurance is that it is highly convenient and makes tracking all your shipments easier.
- You can simply purchase the insurance when you’re ready to ship your goods, and it will be added to your shipping costs. That makes it a hassle-free way to get extra protection for your shipment.
- The great thing about this type of insurance is that you can insure your shipment with all major carriers.
- Not only that, but you can track your shipments from the same dashboard, even if you’re using different carriers.
- You have one point of contact for your insurance-related question for all your shipments – you don’t have to contact each carrier individually.
3. Third-Party Shipping Insurance Gives You International Security
Another significant benefit of third-party shipping insurance is that it can give you the security you need when shipping goods internationally.
Many countries do not allow carrier insurance, which means your goods are not protected in case of damage or loss. Luckily, with third-party shipping insurance, your goods will be protected no matter what country they’re being shipped to. The shipping insurance company will also connect with national carriers to ensure that your package safely arrives at the destination after customs clearance.
So, if you’re planning on doing any international shipping, this is definitely something to consider.
4. It Offers Higher Declared Value and a Wider Range of Insurance Coverage
One of the main benefits of getting insurance from a third-party provider is that it offers a higher declared value than carrier insurance. That means you can claim a higher value for your goods when you purchase the insurance, which gives them more protection in case of damage or loss.
Carrier insurance typically limits how much it will cover, while third-party shipping insurance does not. This makes third-party shipping insurance a better option for high-value items or shipments with a high total value.
Third-party shipping insurance can cover high-value items excluded from your freight company’s policy. It can also cover the total value of your goods, rather than having a limit like most freight company policies.
When getting carrier insurance from carriers like FedEx, DHL, UPS, or USPS, you can usually get insurance for cargo with a maximum declared value of $50,000. Third-party insurance allows you to insure your shipment for up to $150,000.
So, you are essentially getting better value for money, and you can rest assured that all your cargo is covered. This is definitely a convenient option to consider if you’re shipping valuable goods.
5. File a Claim Quicker and Easier
Who wants to deal with the hassle of filing a claim? Nobody.
Filing a claim with your freight company can be a long and tedious process. You have to contact them, wait for a response, gather all the necessary documentation, and then hope they approve your claim. And even if they approve it, you might not get the total amount you’re entitled to.
Third-party shipping insurance makes filing a claim quicker and easier. The process is much simpler, and you’ll have someone on your side to help you through it. Most third-party shipping insurance companies have a team of experts who are familiar with the claims process and can help you get the maximum compensation possible.
Who Should Get Third-Party Insurance when Shipping Goods?
Anyone who ships goods regularly! If you run a business and ship products to customers or frequently ship items to friends or family, third-party shipping insurance is a good idea.
It’s essential for businesses that rely on shipping to generate revenue. If your business ships high-value items or if you do a lot of international shipping, third-party shipping insurance is a must.
Overall, third-party shipping insurance is a great way to protect your shipments and reduce stress levels. It’s convenient, offers high declared value, and can be used for international shipments, so if you’re looking for an easy way to insure your shipments.
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