UPS and FedEx automatically protect each domestic package and international shipment against loss or damage up to a value of US$100 without a declaration of value. If the value of your goods exceeds US$100, you can declare a higher value, up to US$50,000 per package. If no value is declared, the maximum liability for loss or damage to a package or international shipment is US$100.
For shipments with a declared value exceeding $100, UPS will charge $2.70 and FedEx $3.00 minimum. Plus, approximately a $1 charge for every $100 incremental on top of the base. Let’s say you declare that your package is worth $100.50 and want that extra 50 cents of protection. If you want extra protection, you have to pay for it. Using FedEx, you end up paying the carrier $3.00 to cover that 50 cents.
Is declared value shipping insurance?
It’s important to note declared value coverage is not shipping insurance. A declared value on a package represents a carrier’s maximum liability and allows the shipper to make a claim for the full declared value of the package in event of loss or damage, so long as the packaging meets carrier packaging and shipping standards. Declared value is valid as long as cargo is in the care, custody, and control of the carrier whereas shipping insurance generally covers door-to-door and damages that occur during carrier-defined “acts of God.” You don’t want to be in the same situation as one frustrated UPS customer who shipped two iPhones from her local UPS store. Because she didn’t declare the value, when the shipment was “lost in transit,” her $1600 iPhones were only worth $100 to UPS.
There’s an easier way to file lost and damaged claims
Carriers can make you jump through hoops to verify your lost or damaged package meets their criteria. It’s a very rare circumstance that UPS or FedEx will realize an error and contact you to correct it. When a shipment is lost or damaged, Share a Refund sees the issue and takes action, automatically sending notifications, creating documents and filing claims with the carriers according to best practices and the requirements specific to your business. Once per week a report details all lost and damaged claims and any actions that are required to recover refunds. For most customers, there’s no action required whatsoever. All lost and damage claims are completely automated and outsourced to Share a Refund. No more filling out pdf’s, submitting electronic forms and responding to carrier emails. All the time spent on this task is better spent on other significant parts of the business.