FedEx stands alone in terms of shipping reliability, service, and speed. Sensitive documents, delicate materials, and other high-profile items require that extra degree of assurance that the standard postal service cannot provide.
But FedEx has its limitations, notably in the insurance department. While shipments are in good hands, you will likely be left with most of the liability in a worst-case scenario.
In other words, the majority of those costs are on you, which can be financially devastating.
That’s why more companies and individuals are opting for insurance from trusted agencies, granting them the assurance they need to ship smart and safe. Let’s talk about the reasons why you might want to add FedEx insurance the next time you ship something of significant value or scale.
1. “Declared Value” is Not Shipping Insurance
These words are clear on FedEx’s own webpage, so they bear repeating. The declared value of a package represents the maximum liability covered by FedEx if your package is lost, damaged, delayed, or misdelivered in any way.
While it may simplify things to purchase this coverage from FedEx at the time of shipment, declared value leaves much to be desired in terms of the amount paid and the process you need to follow in the event of damage.
Most importantly, you’ll be receiving less than the value of the shipment’s repair cost or replacement, meaning that you need to cover the remainder.
2. FedEx May Not Cover Certain Item Types
Remember to separate FedEx’s in-house insurance program from the more traditional insurance plans that offer far more coverage. It’s not just about the maximum claim – that matters, indeed – but also the type of items that you’re shipping, since these details play a role.
Knowing that, you should take the time to see exactly which items are protected by standard FedEx policies, and which ones require some additional oversight.
Artwork and jewelry, for example, are two item types that tend to exceed the maximum declared value of a FedEx shipment, leaving you unprotected by a significant margin. Expensive clothing and precious metals are other categories with growing markets, and will tend to justify a beefed-up policy.
3. A Streamlined, Simple Claims Process
FedEx does a fine job of supporting its global customer base, but filing claims with the company is known to be a headache, taking far more time than necessary and not guaranteeing an outcome in your favor.
Contacting FedEx claims can be done online, but you have a 60-day window to complete the paperwork and have all your information in order. This is easier said than done when dealing with complex business supply chains.
Furthermore, international claims must be filed via mail or fax, and have an even shorter window of opportunity, making it a near-impossible task for many.
4. Shipping in Volume Demands More Coverage
The more packages you ship, the higher the likelihood you’ll run into some trouble and require insurance. It’s just a numbers game, whether you’re conducting personal business or running a more organized operation.
Therefore, you don’t want to rely on the standard FedEx declared value system when there’s so much money on the line. Reduce the risk and the confusion by locking in a policy from a trusted third-party firm and simplify everything from the start.
5. Doing Business Without Limits
There may come a time when FedEx isn’t your go-to option for shipping, in which case you’ll need a backup plan for insurance ready to rock.
It could be that FedEx doesn’t ship to a certain area of the world, or they’re not delivering the level of customer satisfaction you demand from business partners.
With shipping insurance from a company other than FedEx, you get all those expected benefits without having to rely on one organization to do the heavy lifting. This opens up a range of new possibilities while keeping risk to a minimum.
6. Take Risk Management More Seriously
On the subject of risk, you never want to take unnecessary chances with your business or personal items, especially those of high value.
A small amount of coverage from FedEx is not going to give you the peace of mind you want in the modern world, and that alone is worth the price of upgrading to a dedicated insurance plan.
High profile individuals agree on this one thing: treat your personal finances like a business, rather than risking losses and finding yourself in a maze of claims.
Get Real Insurance for Your FedEx Shipments
If FedEx is a key player in your business or personal life, it’s in your best interest to minimize risk, if not to completely eliminate it from the equation.
One-off shipments of insignificant value don’t require insurance, but anything in the $1000 and beyond territory should be insured to the full extent. See what options are available for shipping insurance and make it a priority from now on.