It is important to protect your shipments from damage or loss when you ship them to customers. Let’s explore more about how to protect your packages with first-class mail insurance. Before that, let’s learn what First Class Mail is and how they provide insurance for packages.
what is first class mail?
If you’re looking for the cheapest, least expensive, and most immediate option for sending postcards, letters, packages, or large, flat envelopes, then USPS First Class Mail is for you. First class mail is less expensive than a regular postage stamp, and also the price remains the same regardless of where the item is shipped. the only difference in price comes with the type of postage, letters, flat rate boxes, etc.
For usps first class mail, the estimated delivery time is 2-3 business days locally and up to 4 days nationally. is fairly consistent when it comes to shipping, even during peak shipping cycles and seasons. That’s why it’s the first choice when it comes to sending anything important, from letters, personal information, or even bills. they are also pretty good at express postage. Plus, when mail is undeliverable, First Class Mail forwards it to the correct address or returns it to the sender at no additional charge.
how does first class mail work?
When you ship with USPS First Class Mail, there are certain size restrictions on the packages and letters you send. here is a table to give you information about it.
learn more about the different types of first class mail here.
Ideally, First Class Mail offers minimal insurance when it comes to shipping packages. let’s know more about the same.
do you need insurance for your packages?
yes. it is ideal if you have insurance for any package you are sending. covers the costs if the package is lost or damaged during transit. Being a savvy online retailer, you may know all the ups and downs that occur when shipments are moved. You’ll have peace of mind when you’ve properly secured your packages as you ship them to your customers. With this insurance, you won’t have to constantly worry about packages in transit being lost or damaged.
so what type of insurance do you need to use?
Most courier companies offer their own insurance or sometimes third party insurance such as shipping insurance. but first class mail insurance is much better than any of these insurances. It gives you a little more protection when it comes to insurance. let’s explore more about the same here and know how different it is from other insurance and also how you can claim the insurance.
is usps first class mail insured?
yes.
Items shipped by First Class Mail are insured. all letters and packages are insured against any loss or damage. therefore, you will be covered if something worse happens. however, there are certain limitations when considering shipping with first class mail, which are:
- no item should be insured above its value.
- certain liability fees apply.
- postage fees must be paid.
- you must deliver the insured package directly to the specified store or post office.
How do other courier services offer insurance?
Most courier services offer their own insurance during shipping. Various courier services offer insurance in different ways. To ensure that the package is covered throughout your trip, it is important to insure it with a little more quantity. each courier has its insurance rates, but mainly the cost is determined by the value of the item shipped, the mode of transport, its destination and the chosen service. here we give you a brief idea about the breakdown of insurance coverage rates for different couriers.
let’s see more details about how to get insurance from different courier services.
usp
This is one of the most profitable and popular mail services in the United States. It is ideal for sending small packages, light packages, letters, postcards, and envelopes in the United States. Insurance coverage for package loss or damage is up to $5,000 for merchandise only. the amount of insurance varies depending on the service you choose and the value of the package. For example, USPS Priority Mail offers insurance coverage up to $100, while Priority Mail shipments can only be insured for up to $50. Here are some of the USPS insurance charges:
- for merchandise up to $50: $2.10
- for merchandise up to $200: $3.30
- for merchandise up to $500: $8.00
- for merchandise up to $1000: $9.25 and for each additional $100 of value, $1.25 additional value or fraction over $600 of the declared value.
fedex
fedex is another popular option for domestic and international first-class mail insurance. They offer an amount to compensate for the costs that are caused by damage or loss of the package. For all packages, they offer an amount of $100. additionally, insurance can be purchased for higher value shipments. but here are some things you need to know before purchasing fedex insurance for your package during shipping:
- the full value of the courier must be reported to the courier.
- most of the first $100 is free for most shipments sent via fedex.
- Make sure you have all your receipts handy to ensure you don’t miss anything while claiming.
- The total insurance on the package must match the total value of the package.
- if the items are broken and can be easily repaired, then they cannot be replaced.
insurance charges by fedex are almost as shown below:
- us express package: for shipments up to $300 value, $3 and additional $1 per $100 value for items over $300.
- same day and same day city : For shipments with a value of up to $300 to $3 and an additional $1 for a value of $100 for items over $300. again, the maximum declared value must be $2000.
- u.s ground: or a shipment with a value of $300 is charged $3 and $1 per $100 for each shipment over $300.
dhl
dhl is one of the global shipping services that also offers insurance for products, while shipping covers full insurance coverage. again, here are some important things to consider before proceeding to choose it.
- insurance coverage is offered against damage or loss of the package due to external factors.
- in the case of dhl express, packages are covered from the point of shipment to the point of delivery.
- There is no insurance coverage or liability when package damage occurs due to insufficient or improper packaging.
dhl offers very limited shipping insurance. some rates are:
- up to $25/kg for shipments sent by air
- up to $12/kg for shipments sent by road.
third party insurance
If you ship with other carriers, you can always opt for third-party shipping insurance, such as Shipsurance. shipsurance can be easily incorporated into your e-commerce store and offered to customers who want to obtain insurance using it. shipsurance is one of the popular shipping insurance companies, offering shipping insurance for popular shipping carriers. They offer reasonable rates, more extensive coverage options, and a fast and hassle-free claim process when it comes to shipping insurance.
if you have a woocommerce store, then you can easily use elex shipping plugins plugin, elex shipping insurance plugin for shipping plugins,which helps to include insurance for your shipment easily. the plugin helps to get partial or full coverage of the items being shipped. accordingly, the quantity is calculated and added to the total price of the item to be shipped. a shipping insurance reference number is issued as a reference for the order.
The shipping insurance reference number is used for future claims when the package is lost or damaged in transit.
learn more about how you can enable shipping insurance with woocommerce.
How do other couriers help customers secure the package in your online store while they shop?
If you are using elex shipping plugins, you can easily let your customers choose whether they want to insure package delivery. Let’s take a look at how various carriers allow customers to choose insurance when it comes to shipping.
usps
stamps.com protects customer packages with an extra ounce of insurance for any type of package damage or loss. they also allow usps insurance in addition to stamps.com insurance as well. it’s like offering double protection. if you have a woocommerce store and want to include stamps.com insurance, you can simply do so using the elex stamps.com shipping plugin with usps postage for woocommerce. in the plugin settings, you can see three options to offer package insurance, they are:
Customer Choice: In this option, customers will get an insurance field on the checkout page, where they can choose to opt-in for package insurance.
mandatory: applies insurance to all packages on a mandatory basis.
no insurance (default option): no insurance is applied to packages.
If you opt for customer choice, after checkout, the customer can choose whether or not they need insurance on their package.
Upon enabling the same, your client will be charged a nominal fee as per stamps.com insurance guidelines.
fedex
As a popular global carrier, fedex makes sure to cover costs in the event a package is lost, damaged or stolen. using elex easypost shipping (fedex, ups, canada post & usps) & label printing plugin for woocommerce, you can easily integrate fedex shipping to your woocommerce store. By using the plugin, you can easily allow users to choose if insurance is required for their shipment while checking out in the store. the amount of insurance is calculated as 1% of the total amount of the product.
dhl
if you want to integrate dhl shipping with your woocommerce store, you need to use elex woocommerce dhl express/ecommerce/paket shipping plugin with printed label, which helps you to get even the dhl real time shipping rates on your woocommerce store. By using the plugin, you can also charge your customer an additional amount for package insurance. you can also restrict dhl insurance for certain specific countries on the checkout page.
You can choose to enable dhl insurance on the checkout page so the customer can choose accordingly.
steps to make an insurance claim
Not only is it important to be insured, but you also need to know exactly how you’re going to claim it at the time of need. If you ship regularly to your customers and there is less chance of loss or damage to items being shipped, you need to know exactly how you are going to claim them when it happens. let’s jot down some points on how you can claim it efficiently and get out in one piece.
- please file your tracking number and label correctly.
- remember to show the declared value of the item using the sales receipt.
- show the paid bill of sale or the invoice.
- find out and provide the estimated value of the damage repair from a reputable dealer.
- obtain and display your credit card statement.
- provide all statements related to online transactions including buyer’s name, price, item descriptions, seller’s name, proof of transaction and even transaction details.
- proof of insurance which also includes shipping receipts as well as properly printed online records.
- be sure to provide proof of damage with a clear and detailed image.
make sure you know in detail everything about how much you can claim from your insurance coverage and the details you need to fill in when submitting the necessary proofs.
protect your shipments with insurance
Insurance can be a lifesaver when you ship regularly. it’s always better to secure packages before something goes wrong. Getting your shipping insurance is a bit more beneficial when it comes to insurance coverage as it allows you to get a bit more than normal benefits while you make the claim.
further reading
- international shipping with epacket: countries, services and rates
- ddu vs ddp: understanding the differences in terms of shipping
- how to reduce the cost of shipping your woocommerce store?