As online shopping becomes more prominent, ensuring the safety of your products is essential, whether you are the buyer or the seller. When you go to a shipping company to send a package, you’ll have the option to insure the item. However, many people are unsure of what that means or when they should consider using it. If you want to ensure that an item gets to the correct destination safe and sound, here is an introduction to package insurance to help you decide if it’s necessary.

Common FAQ About Package Insurance

What is Package Insurance?

All major shipping companies, from UPS to USPS, offer insurance covering lost or stolen items and damaged goods. If a package is insured and something goes awry, the shipping company will pay out the insured amount after a thorough investigation of what happened to the parcel.

Many carriers provide free policies for packages worth up to a certain amount, often around $100 or less. This refers to the highest total that the shipper will pay for a parcel if something goes wrong. If you’re shipping something that costs more than the automatic coverage amount, you must declare the value of the package to be eligible for an insurance upgrade. If you don’t claim the full amount, the package will only be worth the minimum amount if it is lost or stolen. 

What Does it Insure?

Every carrier has specific rules on what is eligible for shipping insurance. For example, some won't cover precious stones or coins. Many companies also have liability limits on items like antiques and artwork, meaning that you may not be able to cover them for their full value. 

It is critical to understand the particular carrier’s shipping rules, including what they deem to be proper packaging. If you send something that is not packed to their standards, the company can void the insurance and won’t pay if the item is lost, damaged, or stolen.

Who Should Get it?

Most businesses and retailers use package insurance to protect their assets. This way, the customer or item recipient will always get the package or the equivalent value if the parcel is lost, stolen or damaged. 

If you’re shipping a personal package, consider using the insurance upgrade if you are sending something over $100. Many people insure items that are shipped during busy times, like the winter holidays. Due to the significant influx in packages, mailed items are more likely to be lost at this time, so it’s wise to make sure you will be reimbursed if anything happens.

If you want to ship something with package insurance, head to Box Stop in Lexington, KY. The company has been in business since 1985, offering shipping services for walk-in customers. Their package insurance will ensure that you have peace of mind, regardless of if you are mailing a birthday card or an expensive piece of electronic equipment. Call their Fayette County location at (859) 271-2393 or visit their website for information on their in-stock packaging, and local, nation- and worldwide shipping.