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In the dynamic world of international trade, where goods travel across borders and continents, ensuring the safe delivery of shipments is paramount – especially if these goods are high-value tech products. Despite the implementation of various measures and standards, the reality is that accidents and unforeseen events can still occur, posing risks to the integrity of consignments. Explore the significance of shipping insurance in protecting businesses against such risks.

What is Shipping Insurance?

Shipping insurance provides a vital shield for your shipment, offering financial protection in the event of mishaps during transit. It serves as a safety net, particularly for high-value goods, guarding against potential loss, damage, or theft en route. The coverage period for shipping insurance typically begins and ends at specific points during the shipping process, albeit with slight variations depending on the carrier and policy terms. 

Typically, coverage starts once you hand your package over to the carrier at a physical location or during carrier collection. Once the package is scanned and accepted into the carrier’s system, your insurance coverage activates. Subsequently, coverage stops upon delivery to the recipient and your goods are signed for as proof of receipt.

Although shipping insurance provides basic protection, it often comes with limitations based solely on the weight of the goods, rather than their value. Additionally, it may impose restrictions depending on the origin and/or destination of the package. Consequently, it may not be suitable for valuable cargo such as high-end and delicate dual-use goods, which carry a high risk of loss or damage. Choosing TecEx’s Liability Cover offers a more extensive safety net for both local and international shipments, covering values exceeding $30 million and reaching over 200 destinations.

Is Shipping Insurance Worth It?

Whether shipping insurance is worth it or not depends on the value of what you’re shipping and your risk tolerance. Consider your own comfort level with risk. If you’d be devastated by the loss of the item, opting for insurance is a good way to manage that risk. Shipping insurance is generally recommended for:

High-Value Items

Shipping insurance is a wise investment for high-value tech gear. Whether it’s a cutting-edge semiconductor chip, a top-of-the-line laptops, or goods for your e-commerce business,  insurance provides financial protection in case of loss or damage during shipping. Even basic coverage can ensure you get reimbursed for the item’s value, saving you from a major financial blow.

Fragile Items

 Data centers are filled with sensitive equipment.  Imagine a delicate server rack or a powerful graphics processing unit (GPU) getting banged around during shipping and sustaining damage.  Shipping insurance is a lifesaver for fragile data center gear.  The peace of mind you get from knowing you’re covered for repairs or replacements if something breaks is invaluable.

Irreplaceable Items

Imagine a prototype for a cutting-edge self-driving car being shipped to a testing facility or an RMA demo item.  While insurance can’t replace the prototype itself or the irreplaceable data it holds, it can help recoup the significant financial investment. This can help the company move forward without the added stress of a lost, one-of-a-kind device.

The Advantages of Shipping Insurance

Shipping insurance offers several advantages that can give you peace of mind and financial protection when sending packages:

Reimbursement for Loss or Damage

The primary benefit is safeguarding yourself financially in case your shipment gets lost, damaged, or stolen during transit.  Without insurance, you’d bear the entire cost of the lost or damaged item.

Reduced Risk  

Knowing you’re covered can alleviate the stress and worry associated with potential mishaps during shipping. This allows you to focus on other aspects of your business or personal transaction.

Enhanced Credibility

Having shipping insurance as a business can project an image of reliability and customer focus. It demonstrates your commitment to ensuring customers receive their orders in good condition.

Reduced Disputes and Chargebacks

By reimbursing customers for lost or damaged packages, you can minimize disputes and chargebacks, leading to smoother business operations.

Confidence in Shipping Valuable Items

When shipping high-value items like tech equipment, shopfitting installations, industrial machinery, large project cargo or aerospace items, insurance provides peace of mind. You know you’ll be compensated for the item’s worth if something goes wrong.

Protection for Fragile Goods

For items susceptible to damage during transport, such as high-end and delicate tech equipment, insurance offers valuable protection.  It can cover repair costs or replacement in case of breakage.

Did you know?

TecEx can provide cover for shipment values up to $30million, never risk it again.

Consider the value of your items and your risk tolerance when deciding if shipping  insurance is necessary. Learn more about TecEx Global Shipping Cover solution

How Does Shipping Insurance Work?

Shipping insurance safeguards your valuables during transport by reimbursing you for loss, damage, or theft. Most carriers offer basic coverage while your goods are in transit. Coverage is often based on the weight of your shipment and not its actual value.

For higher-value items such as high-end tech equipment and encrypted goods, you can safeguard the total value of your goods by opting for TecEx’s door-to-door Liability Cover instead. We have you covered even when your consignment is stored in a warehouse.

With traditional freight shipping insurance, the onus is on you to file a claim with the carrier and prove they are at fault. The carrier will then investigate and potentially reimburse you for the insured amount, minus any deductible.

On the other hand, we take on this admin burden and submit the claim on your behalf should anything go wrong along the way.

Shipping Insurance Comparison