The Delivery Insurance Guide

What is Delivery Insurance?

Shipment insurance is an optional service that allows businesses to insure their shipments, so they receive financial compensation if shipments are lost, stolen, or damaged. For small businesses, especially businesses that ship abroad, this is an investment that provides a lot of security. Coverage of 100% of the value of the shipment allows the seller to easily send a replacement shipment to the customer, at minimal or no additional cost.

What does shipping insurance cover?

Shipping insurance can cover everything from e-commerce products to important documents like legal certificates. Different shipping companies offer different models of insurance, but in general, they offer compensation in cases of:

• Delay in Shipment
• Lost or missing merchandise
• Theft of goods
• Damage to goods during shipment

Usually, the cost of insurance is related to the value of the goods.

What is not covered by shipping insurance?

Shipping insurance usually does not cover the following cases:

• Damage caused by the package or its contents, such as a leak from the contents
• Loss of weight or volume, wear and tear of the shipment
• Loss, damage or expense caused by inadequate or improper packaging or preparation of the shipment
• Loss, damage or expense related to the deliberate negligent conduct of the customer or all parties to the shipment

Do I need delivery insurance?

It's up to you. Are your products high value? If one shipment is lost, will it cause you financial damage? It is worth remembering that relatively few shipments will be lost or damaged. But if that happens, shipping insurance provides financial coverage and peace of mind for business owners.

Is shipping insurance worth it?

It depends on the value of your shipment. If your business delivers expensive items like electronics or furniture, the loss of revenue can be significant – so you should consider taking out shipping insurance. It's important to include the cost of shipping insurance in your budget planning and profit forecasts. Shipping insurance is inexpensive because the risk of loss, damage, or theft is very low.

Three Advantages of Using Shipment Insurance

When shipping goods, it is advisable to consider purchasing shipping insurance to protect the items. Here are 3 main reasons to take delivery insurance:

1. No loss of revenue
   For e-commerce businesses, especially those that deal with high-value products, knowing that you will get 100% of the value of the lost products is reassuring and beneficial to the business. This allows you to quickly and confidently reship the product to the customer in the event of loss or damage. This way you don't lose money or the trust of the customer.

2. Peace of mind
   Online customer  satisfaction is greatly influenced by the shipping process. Negative shipping experiences such as delays and damages can hurt loyalty and jeopardize your chances of getting back into business. Shipping insurance provides protection for both your profit and your reputation.

3. Hassle-free claims process
   If something goes wrong with the shipment, insurance allows you to file a claim for a refund quickly and easily. By choosing a logistics partner with an efficient and reliable claims process, orders can be exchanged or returned quickly, providing a seamless experience for your customers.

Risks of Shipping Without Insurance

Every logistics company tries to minimize risks and keep your goods safe, but sometimes accidents happen. Without shipping insurance, there is an exposure to the risk of:

1. Loss or misrepresentation of the shipment during transportation.
2. Damage to goods during transportation.
3. The theft of the goods.

But remember that the risks are low. Every day, DHL manages to deliver thousands of packages without loss, damage, or theft. But there are always exceptions, as in any broad and complex global logistics operation.

Proper Packaging

To help yourself make sure that the shipments reach your customers intact and in good condition, you can make sure to use appropriate packaging in this guide detailing everything you need.

How to File a Claim for Shipping Insurance

You shipped your product, but the worst thing happened: it was lost during transportation or delivered damaged. Your first step is to contact our customer service team, who will begin an investigation. The claim must be submitted within 30 days of the date the shipment was received by DHL. Staff will inform the relevant service points in our network in order to gather additional information, including photos and details related to the case. An update on the findings can be expected in about three days.

For full details on the claim process, read this important guide.

Frequently Asked Questions About Shipping Insurance

How does delivery insurance work?

Shipping insurance is important for businesses that depend on transporting products to their customers. It provides an extra layer of protection for businesses against unexpected events that can happen during transportation.

Why do you need delivery insurance?

Without insurance, businesses are exposed to financial risks that can be costly and damage their reputation. For example, if a business ships a high-value product without insurance, and it is lost or damaged in transit, the business may bear the cost of replacing the product or refunding the customer. This could be a significant financial loss, especially for small businesses. Shipping insurance provides businesses with a "safety net" and makes sure they are covered against these risks.

How much does delivery insurance cost?

The cost of shipping insurance with DHL Express varies by country, but typically starts at 3% of the package value for outbound shipments, or 1% for inbound shipments. For accurate rates, please contact our customer service team.