Insurance

The pandemic brought on an e-commerce boom, as we’ve never experienced before. According to Forbes, Americans spent $1.7 trillion over the last two years throughout the pandemic.

Packages traveled throughout the air, land, and sea (depending on your destination) to get to their recipient. For business owners, that meant trusting carriers like FedEx to help keep their customers happy.

Unfortunately, things can happen occasionally, and items can get damaged or lost in transit. But with FedEx insurance, your items are covered, and you’re entitled to reimbursement.

Breaking Down Insurance Costs

When choosing a carrier for your items, insurance coverages are always essential. The final cost will depend on the shipped items’ declared value. Let’s have a look at the differences between a few carriers:

UPS

Declared ValueInsurance Cost
Up to $100$0
$100.01 – $300$3.45
Exceeding $300$3.45 plus $1.15 per $100

USPS

Declared ValueInsurance Cost
$50$1.65
$50.01 – $100$2.05
$100.01 – $200$2.45
$200.01 – $300$4.60
Exceeding $300 up to $5,000$4.60 plus $0.90 per each $100

 

FedEx

Declared ValueInsurance Cost
Up to $100$0
$100.01 – $300$3.75
Exceeding $300 $3.75 plus $1.25 per $100

As you can see, USPS is the most expensive out of the three carriers. FedEx and UPS are pretty even in terms of their additional cost for insuring packages. So the final choice will be up to you.

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What’s Covered Under FedEx Insurance?

As stated above, an item valued under $100 will be insured outright. However, if it exceeds a value of $100 or more, you’ll have to pay for additional coverage.

If your item has a value over $500, you’ll automatically get Direct Signature Confirmation. Whoever is receiving the item will have to sign for it. Also, on June 28th, 2022, FedEx Ground and Express drivers will be able to scan a recipient’s identification.

It’s an extra security measure that helps streamline the delivery process. Instead of the wrong person picking up the parcel, the delivery driver can match the identification with the expected recipient. And there’s no need to worry about stolen sensitive data—FedEx assures they will only keep the first name and last initial, which is part of the existing delivery process.

Are There Items That FedEx Insurance Doesn’t Cover?

While FedEx insurance is excellent, there are a few stipulations one should be aware of. First, FedEx is not responsible for damage to delivered goods. For example, if they deliver a package and the recipient causes damage or misplaces the parcel, FedEx is not liable.

Also, FedEx insurance does not cover damage to goods caused by a fire or natural disaster. So, unfortunately, if your package gets swept away in a tornado or landslide, you’ll have to resend the items again.

What If FedEx Loses or Damages the Package?

On the other hand, if FedEx is responsible for losing or damaging your package, you can file a claim for the declared value of the goods. The process is pretty simple; fill out the claim form online or send it by fax. 

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Make sure you have proof of how much the items cost and the invoice sent to you once FedEx shipped the item. Other documents you’ll need to have include:

  • Original vendor invoice
  • Serial numbers of each item
  • Repair invoice from an authorized technician
  • Bank information

The time window for your claim will depend on the service used to ship your items. Packages shipped and lost with FedEx Express must be submitted within 60 days of the specified delivery date. International or damaged package claims will need to get submitted within 21 days.

After submitting the claim, FedEx will start reviewing your case, which usually takes about a week or two. During this period, ensure you keep the parcel’s content and the packaging at hand. FedEx may require a further inspection if your case is more complex.

If they’re responsible, you’ll get a payout according to the declared value of the items. Denied claims will come with a reasonable explanation. Usually, they stem from the sender not following the FedEx packing guidelines, which are there to help you avoid damaged goods during shipping.

But if you followed the guidelines, you can file an appeal. Upload additional proof you believe will strengthen your claim. FedEx may reverse its decision, but this isn’t a likely outcome.

FedEx Insurance Is Worth the Cost

The bottom line is FedEx insurance can give you peace of mind when shipping packages. However, it’s also essential to know your allocated budget. Contact FedEx and figure out how much it will cost to have your items insured. You may spend a little extra, but it’s better than not having insurance at all. 

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