Shipping Insurance
Shipping insurance is increasingly important for both consumers and retailers. It provides protection for items that are lost, stolen, or damaged during transit or delivery.
Customers can easily add coverage at checkout for a low, one-time fee based on the retail value of the shipment. The claims process is fast, straightforward, and designed to maintain a positive customer experience.
A Smart Solution for Online Retailers and eCommerce Businesses
- Shipping insurance helps online retailers protect inventory and maintain customer satisfaction. A well-structured program ensures efficient claims handling when issues arise.
- As package theft becomes more common, offering insurance helps strengthen customer trust and loyalty.
- Frequent shippers—both individuals and businesses—gain peace of mind knowing their packages are protected.
- Customers feel more secure placing orders when they know they’re covered in case of damage or theft.
Because shipping insurance is a regulated product, choosing the right program requires careful attention to structure and compliance. Key factors include:
- Which insurance company is issuing the policy
- What type of policy is used, and does it cover the transported goods
- Who is the named insurance policyholder
- How are consumer protections built into the policy
- Who is the licensed producer and agency in each state
- Who is managing claims, and do they meet regulatory requirements
- Who is performing the claims administration, and are they compliant
- How the offer is presented to the consumer and by whom
- Is the retailer of the product able to receive insurance commissions, and in which states
We help retailers and business partners navigate the options to build or partner for compliant, customer-focused shipping insurance programs.
Whether you’re starting fresh or looking to improve your current program, we can guide you.
For more information on Shipping Insurance:
Insurance is a contract where an insurer agrees to protect the insured from a fortuitous event that leads to a financial loss, and the insured party receives compensation for the loss in exchange for a premium paid to the insurer.
Marine Policies are a good potential solution for Shipping Insurance. Marine insurance explicitly covers the loss or damage to cargo between its points of origin and its final destination.
Is a Contractual Liability Insurance Policy usable for Shipping Insurance? It's insurance when you sell it, regardless of what it's called, so a CLIP can transfer the insurance risk but the initial sale is insurance.
Who has the insurable risk?
Who is the licensed and appointed agency?
Who receives a policy? How are additional interests represented?
If you have questions, Meramec Secure® is here to help you with a simple, no-cost discussion.
