Our team of experts have pulled together some of the most common shipping insurance questions; hopefully this can help you!
Shipping Insurance FAQ: 9 top questions are answered!
Shipping Insurance FAQ
Learn Why Shipping Insurance is Your Canadian Business’s Safety Net (and Why You Might Need It More Than You Think)
Let’s face it, shipping insurance isn’t usually the first thing that pops into mind when you’re prepping a package. For many Canadian small and mid-sized businesses, it’s all smooth sailing until a shipment goes missing or arrives in pieces. Suddenly, insurance becomes a top priority!
This shipping insurance FAQ is here to shed light on the world of shipping insurance, even if you’re new to the game and haven’t quite grasped what it’s all about. Here’s the truth: having insurance provides peace of mind and minimizes hassle when unexpected situations arise.
Whether it’s a damaged product or a lost package, a negative shipping experience impacts everyone involved – the courier, FlagShip, and most importantly, you, our valued customer. While mishaps can occur, we’re here to help you navigate them. Our team of experts has compiled some of the most frequently asked questions about shipping insurance. Let’s dive in and ensure your shipments reach their destinations safe and sound!
9 Shipping Insurance FAQ
1/ I thought the courier companies provided shipping insurance on all shipments? By default, courier companies provide up to $100 of insurance on every shipment*. However, when shipping items valued higher than $100 you should consider purchasing additional insurance for your shipment. For example, if your shipment value is $30 and it is damaged, there is $30 insurance. If your shipment value is $500 and damaged, the maximum the courier will reimburse is $100 unless additional insurance was purchased.
To purchase additional shipping insurance, we offer excellent insurance rates for individual small package courier shipments as well as palletized freight. Our rate is $1.25 per $100 of insurance purchased. Learn more about our in-house insurance.
*Shipping insurance does not apply to all items. Click here for a list of products that are not covered under the courier default insurance and / or additional insurance purchased.
2/ What happens if my shipment is damaged and I didn’t purchase shipping insurance? The maximum the courier will cover by default insurance is $100.
3/ Do I have to contact the courier directly if my shipment is lost or damaged? If you processed your shipment with FlagShip, you call us directly and we will manage everything for you.
4/ What kind of documentation do I need to submit an insurance claim? You will need to provide an invoice showing the cost price of goods before markup. You will be reimbursed cost, not the selling value. Also, photos of damaged item(s)/exterior of box/interior of box to show packaging materials.
5/ What is the amount that I am eligible to receive? You are eligible to receive a reimbursement of:
- The value of the damaged/lost product(s) at your cost price before taxes
- Shipping costs of the original shipment
6/ Will you reimburse shipping even if the shipment was delivered? If your shipment was delivered damaged, let us know and we can definitely make a claim for the shipping charges with the courier!
7/ How long does the claims process take on average? The claims process can take anywhere between two week to one month to complete. This depends on various factors (ex. if courier was able to inspect the shipment, if requested documentation was submitted, etc).
8/ How will I receive my claim settlement? Once the claim is finalized, we will mail you the settlement cheque.
9/ Do I need to keep the damaged items? Yes, along with original box and packaging materials as the courier may request an inspection before processing the claim.