I Thought Shipping Insurance was Paid to the Shipper?

[DocBII]

Good day,

Correct me if I'm wrong, but when reading the insurance statements for USPS, UPS, and FedEx, the insurance benefit is paid to the shipper. Not to say if it is paid at all by any of the shippers.

If this is correct, why are so many of the sellers here stating insurance is on the buyer? Seems to me the shipper/seller should be paying the insurance fee, if they wish to be covered.

Have fun,
DocBII

 

[HTSmith]

Point well taken. I've seen lots of ads stating "Insurance extra if you want it." Seems out of whack to me.

 

[LCazador]

That's correct only the shipper can file a claim.

 

[Rset]

Good day,

Correct me if I'm wrong, but when reading the insurance statements for USPS, UPS, and FedEx, the insurance benefit is paid to the shipper. Not to say if it is paid at all by any of the shippers.

If this is correct, why are so many of the sellers here stating insurance is on the buyer? Seems to me the shipper/seller should be paying the insurance fee, if they wish to be covered.

Have fun,
DocBII

A product is worth what a willing seller is willing to accept from a willing buyer. Nothing more and nothing less. If you don't like the deal, arrange different sale conditions or move on. Sell price has nothing to do with purchase price or perceived market value.

 

[mike mccormick]

A product is worth what a willing seller is willing to accept from a willing buyer. Nothing more and nothing less. If you don't like the deal, arrange different sale conditions or move on. Sell price has nothing to do with purchase price or perceived market value.

I think you have missed the point. Why does the receiver pay the insurance fee, if the shipper is the beneficiary?
It would be to reimburse the shipper for the refund to the buyer. In reality, one would hope the seller would do this.

 

[Rset]

I think you have missed the point. Why does the receiver pay the insurance fee, if the shipper is the beneficiary?

Might have something to do with being honorable and refunding the buyers payment. But I guess there are very few of us honorable sellers today.

 

[DiffEQ]

In simple terms, the seller is stating that your transaction is complete, e.g. you own the product, once it's transferred to the shipper. Then what happens is your problem. If you, the buyer, want some form of protection or guarantee, then pay for shipping insurance.
I see many retail outlets now imposing this on the buyer too.

 

[jepp2]

Why does the receiver pay the insurance fee, if the shipper is the beneficiary?

Not sure I agree. If I sell something, that I have listed a price shipped on, then I do a crappy job of packing it and it is damaged in shipment. As a responsible seller, I would reimburse the buyer, as they didn't receive what they agreed to buy in the condition I advertised it.

I can also list something as $xx for the item + my cost to ship. Just a different way to price things.

I almost never pay for shipping insurance. Mostly due to the horror stories of trying to collect on a claim. I also pack so that it can withstand the movement that occurs during shipment. This means things get thrown around, dropped, heavier items packed on top of them, etc. But since my packing allows for this to happen without any damage to the contents, paying for insurance seems like a bad investment to me. But if the buyer is winning to pay the extra cost for insurance, I will add that to the label purchase.

And if an item I ship is damaged in shipment and the buyer paid for the insurance, I would gladly reimburse the buyer the insurance payout + the amount they paid for the insurance they wanted me to add.

I'm sure others might handle things differently, but that is how I would do it. So the question of why should the buyer be expected to pay for the insurance, it is because they agreed to when they agreed to my price shipped to purchase the item.

 

[Rset]

Not sure I agree. If I sell something, that I have listed a price shipped on, then I do a crappy job of packing it and it is damaged in shipment. As a responsible seller, I would reimburse the buyer, as they didn't receive what they agreed to buy in the condition I advertised it.

I can also list something as $xx for the item + my cost to ship. Just a different way to price things.

I almost never pay for shipping insurance. Mostly due to the horror stories of trying to collect on a claim. I also pack so that it can withstand the movement that occurs during shipment. This means things get thrown around, dropped, heavier items packed on top of them, etc. But since my packing allows for this to happen without any damage to the contents, paying for insurance seems like a bad investment to me. But if the buyer is winning to pay the extra cost for insurance, I will add that to the label purchase.

And if an item I ship is damaged in shipment and the buyer paid for the insurance, I would gladly reimburse the buyer the insurance payout + the amount they paid for the insurance they wanted me to add.

I'm sure others might handle things differently, but that is how I would do it. So the question of why should the buyer be expected to pay for the insurance, it is because they agreed to when they agreed to my price shipped to purchase the item.

As someone who ships many tens of thousands of dollars of products annually, I can assure you that claims do exist. Not due to poor packaging, but simply due to carrier neglect or non delivery. Take your chances as you see fit, shippers are generally reliable. I will offer the buyer the option to pay for additional insurance at their expense. I will package product in the best reasonable method that I can. I will not accept the failure of others to taint my reputation due to the buyer looking to save a few dollars Neither will I charge someone extra who is willing to accept the risk.

 

[Ranger188]

If I'm selling an item, I feel it's my problem to get it to the buyer.
I adjust the price to include shipping and insurance if needed.
If you don't get your price, nobody is twisting your arm to sell it.
An item is only worth what you can get for it...
I've said, adding a little more packaging or tape is cheap insurance.
And yes, insurance claim is paid to the shipper of the item.

 

[nmkid]

I don't know if things have changed but years ago (through the post office) the shipper would purchase insurance for an item he/they shipped. If the item was broken or never arrived the shipper was responsible for filing a charge. The buyer couldn't start a claim because they didn't ship it.

 

[Fast14riot]

UPS insures with an outside policy holder. Under $100 is generally included in undeclared value shipments, however over $100 declared value adds about 1% of declared value to shipping cost. Due to variability in product value combined with size, weight and location, pricing is far from a set price. I ship about 900-1000 pieces a week through UPS and my contract is pretty good. A smaller vendor who might ship 10-100 pieces a week has far less bargaining power over their contract prices, which means its going to be closer to retail pricing. Especially if seller doesn't opt for WorldShip software or the api integration.

Shipping costs are the ultimate scaleable commodity. The more you move, the cheaper it is. Sadly, this is unadvantageous for the small business. However, UPS insurance has a great track record of paying claims. If anyone ever has to fight them, let me know and I can help you. I do this stuff for a living.

 

[HTSmith]

As someone who ships many tens of thousands of dollars of products annually, I can assure you that claims do exist. Not due to poor packaging, but simply due to carrier neglect or non delivery. Take your chances as you see fit, shippers are generally reliable. I will offer the buyer the option to pay for additional insurance at their expense. I will package product in the best reasonable method that I can. I will not accept the failure of others to taint my reputation due to the buyer looking to save a few dollars Neither will I charge someone extra who is willing to accept the risk.

Just for clarification, if the buyer chooses to pay the insurance then you will pursue the claim if the package is lost and refund the buyers money?

 

[farmerjohn]

As someone who ships many tens of thousands of dollars of products annually, I can assure you that claims do exist. Not due to poor packaging, but simply due to carrier neglect or non delivery. Take your chances as you see fit, shippers are generally reliable. I will offer the buyer the option to pay for additional insurance at their expense. I will package product in the best reasonable method that I can. I will not accept the failure of others to taint my reputation due to the buyer looking to save a few dollars Neither will I charge someone extra who is willing to accept the risk.

Hey Feller, just so I understand what you are saying. If I buy x product shipped to my house from you and don't buy your "extra" insurance and for whatever reason x doesn't get to my house , I've just lost my money? Trying to understand this... John

 

[boltfluter]

UPS insures with an outside policy holder. Under $100 is generally included in undeclared value shipments, however over $100 declared value adds about 1% of declared value to shipping cost. Due to variability in product value combined with size, weight and location, pricing is far from a set price. I ship about 900-1000 pieces a week through UPS and my contract is pretty good. A smaller vendor who might ship 10-100 pieces a week has far less bargaining power over their contract prices, which means its going to be closer to retail pricing. Especially if seller doesn't opt for WorldShip software or the api integration.

Shipping costs are the ultimate scaleable commodity. The more you move, the cheaper it is. Sadly, this is unadvantageous for the small business. However, UPS insurance has a great track record of paying claims. If anyone ever has to fight them, let me know and I can help you. I do this stuff for a living.

Very interesting. I have never heard of anyone getting paid by UPS with an insurance claim, without a major battle on their part. 99% of my customers do not use the insurance as they feel like they may as well just throw the money out of the window before a claim will ever be paid. The horror stories are endless, to say the least. Maybe you know something the rest of us don't. Care to share?
Paul

 

[saunaking]

When I sell anything on this site for over $100, there is a price for the extra insurance, and a price without. Like @Rset says, it all depends on what you are willing to accept for risk as the buyer. Insurance on a $2000 scope adds at least $50 to the price for shipping with USPS or UPS if you don't have a contract for better pricing. The seller sets the terms of the sale, it's up to the buyer to accept those terms for the sale to go through. That's why I always look for feedback on a seller before buying from them. Comments like "packaged well" are important.
Cheers

 

[kindabitey]

Just one opinion, but when I sell something, it doesn't belong to the buyer until it's been delivered. I price things including shipping/ insurance. If whatever shipper fails to deliver, It's my responsibility to find out and follow up on why.

 

[Fast14riot]

Very interesting. I have never heard of anyone getting paid by UPS with an insurance claim, without a major battle on their part. 99% of my customers do not use the insurance as they feel like they may as well just throw the money out of the window before a claim will ever be paid. The horror stories are endless, to say the least. Maybe you know something the rest of us don't. Care to share?
Paul

Lost and damaged claims are handled 2 different ways. Lost package claims open an investigation where GPS is checked, address verification, etc. This may take up to 8 days to complete which then they will either find and deliver or move to replacement cost.

Damage claims really need to be specific with descriptions of packaging and follow UPS guidelines for proper packaging. Essentially, 2" of space on all side (1" is fine but stating 2" is important), new double wall cardboard box sealed with proper tape. Bubble wrap, foam, crushed paper, anything to keep items from moving at all or settling in the box.

With filing the damage claim, pictures of outside damage to packaging, damage to goods and replacement or repair value will be needed. The more information you give them at the time of filing a claim, the better the chances of getting it paid. You can also dispute denied claims and have them reversed.

Normally takes me about 5 minutes to file a claim if I have the pictures from a customer of the damage.

 

[FNSafari]

if a shipper wants to they can provide insurance, a lot don't so its up to you. You need to determine whose responsibility it is. Shippers are not required to provide insurance. If a shipper tells you your goods are being sent FOB (free on board) they it is up to you to insure if you want to.

 

[SteveOak]

Some buyers don't want to pay the extra for insurance. Some sellers what the goods protected by insurance. It is up to the buyer and seller to come to an agreement. This is not like ordering from Walmart, it is a private transaction.