Whether you’re a casual or business shipper, you place trust in a carrier to get your package to its destination. Having trouble with other services in the past has led to FedEx becoming your primary shipping service.
However, to maintain a certain level of trust in their shipping prowess, you decide to get FedEx insurance. It doesn’t guarantee safety, but you can get reimbursed for the value of items if they happen to get lost. Is it worth the cost? Well, that depends on your shipping needs.
For all carriers, the insurance cost will depend on how valuable the items are. If the items inside the package are high value, then insuring them will be more expensive. Here’s a quick breakdown of FedEx insurance costs:
|Declared Value||Insurance Cost|
|Up to $100||$0|
|$100.01 – $300||$3.75|
|$100.01 – $300.00 (Express Shipping)||$3.75|
|Over $300||$3.75 plus $1.25 per $100|
As you can see, the general costs of FedEx insurance aren’t that high. FedEx also clearly outlines its declared value policy for certain items like artwork, jewelry, or furs on its site.
If you’re shipping any of these items, you might be skeptical about buying insurance because full reimbursement may not be possible. But rather than rolling the dice, here are a few reasons you should purchase insurance.
Do you remember the last time you shipped a package without insurance? It might have been a stressful experience. The parcel was delivered intact, but there were probably a few sleepless nights.
Furthermore, you were probably asking yourself questions such as:
Of course, it’s natural to worry about your package when it's in the hands of a carrier. But by having FedEx insurance, you won’t have sleepless nights wondering about its safety.
Another benefit of having FedEx insurance is the boost it gives your claim. There’s a slight possibility that a package can get lost or damaged, and it helps to have proof of the item’s value.
To file a claim online or by fax, you’ll need a receipt for the items and an invoice showing you shipped your package with FedEx. You’ll also need:
If you shipped with FedEx Express, you have 60 days to fill out the claim form and up to nine months for damaged or lost packages.
FedEx International packages have a 21-day window, so you’ll need to move fast. After filing the claim, the investigation takes about a week.
If FedEx is responsible, you’ll get reimbursed for the declared value costs. But keep in mind that if you package the item yourself, you’ll need to have followed FedEx’s guidelines to have a successful claim. Appeals are possible, but reversal decisions are unlikely.
If the package's declared value is over $500, you’ll automatically get Direct Signature Confirmation. It’s an extra feature where the recipient must sign for the package once it’s delivered.
Also, starting on June 28th, 2022, FedEx Ground and Express drivers will be able to scan recipient IDs for items that need signatures. It’s not mandatory, and FedEx won’t keep sensitive information like your driver's license or birthday. The purpose is to help streamline delivery processes.
FedEx's financial liability increases when shippers pay for additional insurance coverage because they will have to reimburse the individual if found guilty of the damage. However, there are certain things that FedEx’s insurance doesn’t cover.
For example, if a parcel is lost or damaged after it reaches its destination, FedEx is not responsible. Furthermore, FedEx insurance doesn’t protect your package from fires or natural disasters. So if your items get washed away during a flood, there’s nothing FedEx can do to help.
The final answer is it depends. If you’re sending a letter, chances are it won’t get lost. But if you’re sending sensitive documents, having insurance coverage could ease some stress.
Furthermore, you’re actively increasing security efforts for your items by getting insurance. There are many possibilities when your parcel is in transit, and if you fail to get insurance, it’ll be more challenging to file a reimbursement claim.