Purchasing cross-border logistics insurance requires comprehensive consideration of multiple factors.
In this article, Weefreight will share specific purchasing methods and a guide to full compensation for lost/damaged parcels in international express delivery. We hope this will be helpful.
How to Buy Cross-Border Logistics Insurance
Clarifying Insurance Needs: First, understand the characteristics of your cargo and its transportation requirements. For example, whether the cargo is high-value, fragile, or easily damaged. For high-value electronics, you may need insurance that covers the risks specific to electronic equipment. For fragile items, consider whether the insurance covers damage during transportation.
Choosing an Insurance Provider:
Insurance Services Offered by Logistics Companies: Many large logistics companies, such as DHL and FedEx, offer their own insurance options. Their advantages include close integration with logistics services, potentially making claims processing more convenient and efficient. Furthermore, they are familiar with the shipping process and can better assess risks. However, insurance coverage and compensation limits may be relatively limited. Professional freight insurance companies, such as AIG, have extensive experience in cross-border logistics insurance and offer a wider range of insurance products and higher compensation limits. They can also customize insurance plans based on cargo type and transportation route.
Determining the insurance amount and rate:
The insurance amount is generally determined based on the actual value of the goods, including the price of the goods themselves, packaging costs, and expected profits. For goods with potential value-added, such as scarce electronics, the insurance amount should be appropriately increased to account for this added value.
Insurance rate: The mode of transportation, type and nature of the goods, and transportation route all affect the rate. Ocean freight rates are relatively low, potentially around 0.1%-0.3% of the cargo value; air freight rates are higher, typically around 0.3%-0.8%. High-risk goods, such as chemicals, will have higher rates than ordinary textiles.
Fill in the insurance information: Follow the instructions in the insurance application provided by the insurance company or logistics company. Accurately and completely fill in all relevant information, including cargo type, quantity, value, mode of transportation, origin, and destination. Ensuring that this information is correct is crucial for ensuring the validity of the insurance contract and the smooth processing of subsequent claims.
Confirm the quote and purchase: After submitting the insurance information, the insurance company or logistics company will conduct a risk assessment and provide a quote. Carefully review the cost details and policy terms and conditions, and purchase the policy only after confirming they are correct. After paying the premium, the insurance company will issue a formal policy and invoice to the policyholder, completing the purchase process.
Guide to full compensation for lost or damaged items in international express delivery
Choosing the right insurance plan: When purchasing insurance, choose one that provides full compensation coverage. For example, some policies provide compensation for lost or damaged items at the original value of the goods, provided the insured amount is greater than or equal to the actual value.
Preserving evidence:
Lost items: You will need a confirmation of loss from the carrier or a certificate of loss from the EMS. At the same time, provide the purchase receipt, screenshots of the credit card amount, and screenshots of the order details from the online shopping website.
Damage: When signing for the package, record a complete unpacking video. Keep the delivery list and damage certificate issued by the courier, as well as photos of the package label with the tracking number, the outer box, and the damage.
Promptly notify the insurance company or logistics company: If you discover that a piece of goods is lost or damaged, notify the insurance company or logistics company’s customer service as soon as possible, explain the situation, provide the retained evidence, and request compensation be handled in accordance with regulations.
Cooperate with the investigation: After receiving a claim, the insurance company or logistics company may investigate the incident. Actively cooperate with them and provide any further information and assistance required to ensure a smooth claims process.
Understand the claims process and timelines: Different insurance providers and logistics companies may have different claims processes and timelines. Be aware of these in advance and ensure that you submit relevant documents and complete subsequent actions within the specified timeframe to avoid claims failures or delays due to unfamiliarity with the process or timeouts.
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