How to Add Additional Insurance on Shipping Shopify

Table of Contents

1. Introduction
2. Understanding Shopify’s Shipping Insurance
3. Steps to Add Additional Insurance on Shipping Shopify
4. Benefits of Adding Additional Shipping Insurance
5. Alternative Insurance Solutions
6. Conclusion

Introduction

When you run an e-commerce business, the safety and timely delivery of your products is paramount. Recently released statistics show that about 1 in 10 packages in the US arrive damaged, and one in three Americans has experienced at least one instance of package theft. These numbers highlight a significant issue: without sufficient precautions, your business can lose money, time, and customer trust due to shipping mishaps.

In this blog post, we'll dive into a method that can help safeguard your shipments and provide peace of mind to both you and your customers. Specifically, we focus on Shopify, one of the most popular e-commerce platforms. We'll explore how to add additional insurance on shipping Shopify orders, covering the steps to ensure your packages have the necessary protection, and discussing the benefits of doing so. By the end of this guide, you’ll be equipped with essential knowledge to fortify your shipping process without overcomplicating your operational workflow.

Understanding Shopify’s Shipping Insurance

Default Shipping Insurance Coverage

For businesses that use Shopify Shipping, the platform provides a safety net of insurance coverage. If you're on the Shopify, Advanced Shopify, or Shopify Plus plans and have Shopify Payments activated, you automatically receive up to $200 USD of shipping insurance on each eligible label at no additional cost. This standard coverage applies to both domestic and international shipments originating from the US.

Extending Your Coverage

When your orders' value exceeds $200, purchasing additional insurance can be a wise choice to cover the full shipment value. Shopify allows you to buy up to $5,000 of insurance coverage per shipment. This extended coverage can protect you significantly against the financial ramifications of lost, damaged, or stolen packages.

Steps to Add Additional Insurance on Shipping Shopify

1. Check Eligibility and Set Up Shopify Payments

Firstly, verify that you are on an eligible Shopify plan (Shopify, Advanced Shopify, or Plus) and that Shopify Payments is set up on your store. The included insurance is automatically applied to qualifying shipments only when you use Shopify Payments.

2. Create and Purchase Shipping Labels

• Go to Orders: In your Shopify admin, navigate to the 'Orders' section.
• Select Order: Click on the number of the order you wish to insure.
• Review Shipping Options: When purchasing a shipping label, look at the 'SHIPPING INSURANCE' section.
• Add Insurance: If the default $200 insurance is not sufficient, you will see an option to purchase additional coverage. Enter the total amount of insurance coverage required for that shipment.

3. Review Insurance Rates

Shopify provides a table of insurance premium rates based on the shipment value. Review these rates to understand the cost implications. This step ensures that you are aware of the additional charges before finalizing the purchase of the shipping label.

4. Finalize Purchase

After confirming the insurance amount, proceed to purchase the shipping label. The cost of the additional insurance will be added to your account during this transaction.

5. File Claims When Necessary

In unfortunate events where you need to file a claim, Shopify has streamlined this process:

• Access Claims: From your Shopify admin, go to 'Orders' and click the order number to submit a claim.
• File Claim: Click the ‘...’ button next to the order details and select ‘File claim.’ Enter the necessary details about the claim type, discovery date, and reason.
• Payout Details: Choose how you want to receive the insurance payout and provide the necessary contact or address information.
• Submit: Agree to the disclaimer and click ‘File claim.’

After submission, you will receive a claim ID and a link to the Shipsurance insurance portal to check the claim status.

Benefits of Adding Additional Shipping Insurance

Customer Trust and Satisfaction

Customers are more likely to return to your store if their purchases reach them securely. Offering insurance shows customers that you care about their purchase's safe delivery, enhancing their overall shopping experience.

Financial Protection

Having insurance reduces the financial risk associated with lost, damaged, or stolen packages. Rather than absorbing the damage costs yourself, insurance allows you to recover funds which can be particularly important for high-value items.

Reduced Operational Stress

The simplified claims process directly through the Shopify admin means you spend less time dealing with shipping issues and more time focusing on growing your business.

Alternative Insurance Solutions

Third-Party Insurance Apps

If you are not using Shopify Shipping, consider using third-party apps like Norton Shopping Guarantee with Package Protection by EasyPost. These applications allow customers to purchase shipping insurance at checkout, providing further peace of mind.

• Setup: Install the app from the Shopify app store.
• Customization: Customize insurance options to suit your business needs.
• Claims Process: These apps often have their separate streamlined claims processes, which can integrate seamlessly with your Shopify store.

Simply Shipping Protection

Another reliable option is Simply Shipping Protection, which allows you to handle your shipping insurance in-house without relying on third-party insurers. This app lets you customize coverage and streamline claims directly within your Shopify admin, providing more control and potentially reducing extra fees.

Conclusion

Shipping mishaps can strain your e-commerce business, financially and operationally. By adding additional insurance on Shopify Shipping, you effectively mitigate these risks, safeguard your business, and enhance customer satisfaction. Whether you choose Shopify's built-in insurance options or explore third-party applications, having a reliable insurance strategy in place is crucial to maintaining smooth operations and ensuring the longevity of your business.

FAQs

Q: What happens if my shipment exceeds the insured value during transit?

A: Unfortunately, you can only claim up to the insured amount. Hence, it's crucial to insure up to or slightly above the value of the shipment contents.

Q: Is the process of filing a claim complicated?

A: No, Shopify has integrated Shipsurance, making the claims process quite straightforward directly from your Shopify admin.

Q: Can I use additional third-party insurance apps without Shopify Shipping?

A: Yes, there are various apps available in the Shopify App Store that can integrate with your store regardless of your shipping method.

Q: Does Shopify support insurance claims?

A: Shopify does not provide support for insurance claims directly. You need to contact Shipsurance support for any issues related to claims.

By understanding and using the available tools and features for shipping insurance on Shopify, you can provide a safer and more reliable shopping experience for your customers while protecting your business against unexpected losses.