Shipping insurance

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Shipping insurance is a service which may reimburse senders whose parcels are lost, stolen, and/or damaged in transit.

In Canada and the US, shipping insurance is offered by postal services, courier companies, and shipping-insurance companies. Not all insurers will insure all goods. For example, postal services may not insure certain economy-class parcels for free, and some items cannot be insured. [1]

First-party shipping-insurance services offered by postal services and courier companies may have many more restrictions than third-party shipping-insurance services. First-party insurance services may not pay out on claims unless the item was packed very carefully. Claimants also may need to provide proof of an item's value. [2]

When practical, self-insurance is normally more economical than paying for insurance; see Insurance#Limited consumer benefits.

See also

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<span class="mw-page-title-main">United Parcel Service</span> American package delivery company

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<span class="mw-page-title-main">Package redirection scam</span> Form of e-commerce fraud

A package redirection scam is a form of e-commerce fraud, where a malicious actor manipulates a shipping label, to trick the mail carrier into delivering the package to the wrong address. This is usually done through product returns to make the merchant believe that they mishandled the return package, and thus provide a refund without the item being returned. It can also be done by the seller, generally by creating fraudulent online stores or creating fake listings on sites such as eBay or Mercari. This makes it very hard to perform a chargeback, as the tracking shows the item has been delivered. This is also known as an FTID scam, standing for Fake Tracking ID. When this scam is successful, the tracking number will show that the package has been delivered to the correct address, when the package was instead delivered to a different address. This package is generally empty or filled with garbage. However, this scam has mostly been “patched” via new technology provided by the various couriers globally. It is estimated the scam cost retailers £18,000,000,000 in lost revenue.

References

  1. "Shipping Insurance and Delivery Services | USPS". www.usps.com. Retrieved 2024-05-08.
  2. See: "Re: Is shipping insurance worth it?". Ask MetaFilter. MetaFilter Network, Inc.