FedEx is the only company to stand out in terms of speed, service, and reliability. Particularly sensitive documents, delicate items, and other highly-publicized items need that extra assurance that the regular postal service cannot provide.
However, FedEx has its limitations, especially in the insurance industry. Although your shipment is safe with FedEx, you’ll end up with the bulk of the responsibility in the event of a catastrophe.
Most of the expenses are yours to pay, which could be financially ruinous.
It’s why more businesses and people are choosing insurance from reputable agencies that provide them with the security that they will ship in a smart and secure way. Let’s look at the main advantages of considering adding FedEx insurance next time you’re shipping anything of significant importance or magnitude.
1. “Declared Value” is Not Shipping Insurance
The words are clearly stated on the FedEx website and are worth repetition. The stated value of the package is the full responsibility FedEx will take on when your package is damaged, lost, or delayed by any means.
While it can be a great way to simplify the process by purchasing this coverage at FedEx when you make the delivery, the value that is declared leaves a lot to be desired regarding the amount you pay and the procedure you have been following for the damage.
In addition, you’ll get less than the cost of repair or replacement, which means you’ll have to pay for the remaining.
2. FedEx May Not Cover Certain Item Types
Be sure to distinguish FedEx’s in-house insurance program from traditional insurance plans that provide greater coverage. It’s not only about the highest claim amount but the type of item you’re shipping. It’s also about the type of goods you send because these aspects impact you.
Being aware of this, you must examine the items covered under standard FedEx policies that require additional oversight.
For instance, jewelry and artwork such as jewelry are two categories of merchandise that tend to be more expensive than the value declared for a FedEx shipment, leaving the recipient without protection by a substantial margin. High-end clothes and precious metals are other categories experiencing expanding markets and can justify a stronger policy.
3. A Streamlined, Simple Claims Process
FedEx is a great job of assisting its global customers; however, making demands with them is a pain that can take longer than required and does not guarantee that you will receive a favorable outcome.
Contacting FedEx claims can be completed online, but there are 60 days to complete the application and have the necessary information. It is much easy to accomplish when it comes to complicated business supply chains.
In addition, international claims must be filed by fax or mail and come within a shorter time frame, making it an almost impossible job for many.
4. Shipping in Volume Demands More Coverage
The more packages you send, the greater the chance that you’ll encounter some issues and need insurance. It’s all about numbers, whether you’re running a private business or operating an organized one.
So, using the standard FedEx declaration value method is not a good idea when you have a lot of money at stake. Eliminate the risks and confusion by locking in a contract with a trusted third-party company and making everything simpler from the beginning.
5. Doing Business Without Limits
There could be a point that FedEx isn’t your preferred choice for shipping, and in that scenario, you’ll require an insurance plan backup prepared to roll.
It may be that FedEx does not deliver to certain areas of the globe, or they’re not offering the quality of service you expect from your business partners.
Suppose you purchase shipping insurance provided by a company that is not FedEx. In that case, You can enjoy the benefits you expect without having to depend on one entity to perform your heavy lifting. This can open up many possibilities and keep risk at a low level.
6. Take Risk Management More Seriously
In terms of taking a risk, it is best not to take chances on your personal or business items, particularly those of significant value.
A tiny amount of insurance from FedEx does not provide the peace of mind that you require in today’s society, and this is the reason alone worthy of switching to a dedicated insurance plan.
Many famous people agree that one thing is to treat your personal finances as a business instead of risking losing money and navigating the middle of a maze of lawsuits.
Get Real Insurance for Your FedEx Shipments
Suppose FedEx is a major participant in your professional or your personal life. In that case, it’s in your best interest to limit the risk and, if possible, eliminate it from the process.
The one-time shipments of little value are not required to be insured, but anything worth $1000 or beyond the territory must be covered to the fullest extent. Check out the options available to you for shipping insurance, and take it as a top priority starting now.